Tis' the season for sending big discounts, but is it time for this strategy to get a re-think?
Let's see what the data says.
1. Mobile is the way to go
In 2023, Mobile and online platforms should be front and center for every retailer's strategy.
According to Adobe Analytics, mobile and web purchases account for the lion’s share of holiday shopping, a spree that saw consumers spend peak at a high of $12.8 million per minute on Cyber Monday in 2022.
2. Discounts are the wrong approach
A study we conducted on over 28,000 eCommerce push notifications from retailers such as Macy's, Walmart, Amazon, and others, found that over 81% of them contained a discount...and this didn't only include holiday messages — when looking specifically at holiday messages, this number jumps to over 95%.
Discounts don't help you stand out. Discounts make you blend in.
Sub finding: Getting a jump on your competitor's timing may not be effective
Over 35% of the messages we observed were received before 7:00 am. This means your customer is likely waking up to a full bar of notifications, making it even harder to stand out with an "early morning" strategy.
As you can see, timing alone won't help you stand out.
Sub finding: Discounts ≠ Sales
Our research Found that the most common discount amount offered was 50% (which is a little alarming, as Shopify noted that eCommerce net profits are typically only between 5-20% ), but surprisingly conversions were actually correlated with lower discount amounts:
Higher discounts can drive more window shoppers, but lower discounts are the perfect nudge your loyal shoppers need to covert.
3. Product recommendations drive significantly more conversions than discounts, while preserving margin
This time of year, the question on your customers' minds isn't "How can I get this particular item cheaper?"
It's ,"What on earth am I going to get grandma?!"
Product recommendations provide these helpful suggestions to your users. They help them find greater value in your app, which leads to higher conversions while preserving your precious margins.
Our analysis of over 1.2 million push notifications sent to over 800,000 users found that messages containing product recommendations drove 300% as many clicks and 289% more checkout events as generic or discount-driven marketing messaging.
Tis' the season for profitability
This year, don't just throw discounts at your customers. Help them check items off their Christmas lists instead.
Aampe's product recommender was designed with just this purpose in mind —
Our messaging-optimized recommender connects directly to your content management system in a few clicks, inserting relevant product recommendations into your outbound messaging (SMS, push notifications, WhatsApp messages, In-App messages, email, in-app banners, and more) with minimal setup and intervention from your team.
If you want to see just how easy it is to get started, click that big orange button below.
To read the full CMSWire article, click here: https://www.cmswire.com/digital-marketing/how-retailers-can-elevate-marketing-and-messaging-to-ring-in-the-revenues/