Tag: discount

Giving discounts to your best repeat customers

A Repeat Customer Insights customer was asking about using loyalty discounts and how that could impact customer behavior. Loyalty is mainly measured by the Frequency score in RFM with the Recency showing a bit of influence too. It makes sense, the more times a customer orders then more likely they are loyal. And the more …

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Even a considerable discount might not motivate a buyer

A small publisher just emailed me a 35% off coupon for their online store. They happen to have a book I wanted so I compared them to Amazon. Amazon’s price was $29.16 while the store’s list price is $34.95 plus $7.50 shipping for $42.45. Even with the 35% coupon the price drops to $27.72, only …

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How different discount strategies can change customer behavior

A Repeat Customer Insights customer was asking about how to combine the automatic segments with a discounting strategy they’re considering: We want to offer larger discounts for vip and loyal customers, smaller more frequent discounts for low aov or average customers etc Discounting can have a major influence on customer behavior and has the potential …

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Sometimes the simple solution is good enough

I recently saw that a local tea store moved to Shopify. It’s more of a come in and drink tea shop but they do sell some bulk teas and teaware so a Shopify store can be nice supplement. Funnily, they had a bootstrapper-ese approach to discounting. In their footer, where most people don’t look, they …

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Should you ever take 0 profit on orders to build customer loyalty?

I was thinking about something the other day. Is it ever worth taking zero profit on an order for a repeat customer? For a new customer it’s different (e.g. loss leader strategy). It’s riskier as you don’t know if they’ll reorder or have customer service issues that end up costing you. It can work, but it …

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How two cents improved my shopping experience

Last weekend I ordered from a Shopify store with free shipping for $30. Problem was that my order came out to $29.98 (two $14.99 products), just under their limit. I decided to start checkout anyways to see how much shipping would cost. I was surprised to see that I qualified for free shipping, even though …

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Give your repeat customers your best offers

If you’re going to give discounts, bonus offers, or otherwise incentivize customers, your repeat customers should get the same deals (or better). I’m still surprised at how many companies don’t do that and treat new customers better than their loyal customers. You’d expect bad behavior from cell phone carriers and other forced-monopolies but not in …

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