Everyone loves a bargain, right? For brands who want to stand out and compete for shopper loyalty, running promotions can be a great way to generate hype, convert potential prospects, and increase loyalty.
But how should brands create effective promotions? To gain valuable insights, we recently ran a survey, asking 500 US-based consumers to fill us in on their true perspective about promotions, how they find and leverage offers and discounts, how they really feel about companies who offer promotions, and a whole lot more!
So, let’s jump right into the key findings we discovered from our latest survey.
1.Personalized promotions encourage shoppers to spend more
Nearly 60% of shoppers surveyed would be more likely to purchase if they received a promotional offer. In addition, 61% of shoppers would be inclined to buy from a personalized offer, customized to their needs and interests. This shows us how critical it is to create an effective and strong promotional strategy, in order to drive sales and customer satisfaction.
Impact of Customized Promotions on Purchase
2. Most shoppers, particularly Gen Z, believe promotions reflect a true discount
51% of shoppers always believe in the discount of a promotion, trusting that it’s a genuine offer, while 26% are sometimes hesitant, depending on how familiar they are with the brand/online store. When comparing the trust in promotions by generation, Gen Z (25-40) are leading the pack at 56% compared to 46%-49% in other age brackets.
Trust In Promotions Reflecting a True Discount
3. Website and email are king when it comes to promotions
There’s been a lot of buzz in the market about social media influencers and SMS offerings to help retailers to spread the word about promotions and deals. However, over half of the shoppers surveyed learn about new promotions via on-site offerings like banners, pop-ups and checkout deals, as well as email. Social Media comes in second, with a nominal 21% of influencers accounting for site traffic. SMS comes in third at 9%, only slightly above print advertising.
Top Channels for Learning About Promotions
4. Free shipping for the win
From our survey, consumers have top preferences when it comes to promotions. Nearly 80% of shoppers today expect free shipping. Put simply, free shipping can increase sales. Ironically, brands feel that free shipping is the least effective promotion. 68% of shoppers want discounts, with 56% wanting BOGO – Buy one get one free. It’s fascinating that next-purchase discounts and loyalty rewards are at the bottom of the pack for consumers, when nearly 90% of retailers opt to use these offers in their promotions, likely to entice shoppers to return.
Top Preferred Promotions
5. Shoppers are reluctant to share their personal information
Because personal data is so valuable, shoppers are more vigilant about sharing personal information, especially in today’s ‘GDPR’ world. Fittingly, 49% of those surveyed will sometimes share their data to receive a promotion. 13% will rarely share and 15% won’t share at all. Only 23% are willing to share personal data to receive a promotion.
Generationally, what’s also telling is that nearly 30% of Millennials (25-40) and Gen X (41-56) are more willing to share their details, compared to other generations (12-20%).
Sharing Personal Information for Promotions
Here’s where it gets really interesting. At Namogoo, we don’t need personal data and information to provide shoppers with the right promo, at the right time in their journey. What does this mean? By using our Intent-Based Promotions solution, you’re able to tap into a shopper’s intent and learn about their unique signals and behavior each time they visit your site. It then delivers the minimum promotion needed, or no promotion at all, to convert them at the right time in their journey.
6. Promotions don’t necessarily harm brand perception
61% of the shoppers in our survey said promotions would increase the likelihood of making a purchase. A small fraction indicated it cheapened their view of the brand. The majority are split between those who think highly of brands that offer promotions (49%) and those that are indifferent to them (46%). This suggests that shoppers may be swayed by the right kinds of promotions if brands created a stronger strategy around the promotions that they offer.
Brand Impact from Offering Promotions
Remember, each customer is on their own journey
Our survey reveals the true voice of the online shopper in 2021. The world of eCommerce has changed after COVID and shoppers have adopted new purchasing trends and habits, with competition stronger than ever. One thing is for sure, building an effective sales promotion strategy is imperative for your e-Commerce business’ success.
Uncover all of the insights we found in our survey.