Retailers
could find it beneficial to sales if special offers are given to consumers.
However, the kind of offer is important to the customer which may translate to
more revenue for advertisers.
eMarketer
reported on two studies conducted in regards to which special offers online
consumers prefer. A poll produced by Retention Science asked which the most
effective online customer incentive was for retailers. Results showed that
close to a third of responders liked percentage discounts like a 20% off
coupon. Immediately following was free or discounted shipping at almost 22%.
The third top offer was a certain amount discount like a $15 off coupon.
The
second study, which was done by Flagship Research for BlueHornet, looked to see
if the age demographic affects how customers react to an advertiser offer. It
appears that research supports that younger adults 18-45 prefer discount offers
over free shipping options. In contrast, older adults 46-75 enjoy free shipping
over discount coupons.
What
advertisers need to take away from these two studies is that the consumer finds
value in a “good deal.” So, know your target audience. This will help optimize
selling your product or service to your customer.