A few days into 2019, you probably already feel overwhelmed by all the ways your business should grow, engage, retain and personalize every aspect of the customer experience. Especially when it comes to promotions.
To help you make sense of this madness, we collected the 20 most important statistics to guide your 2019 promotion marketing strategy. This article also includes 20 useful promotion tactics you can steal and implement this year.
In the first half of 2018, over 4 billion digital promotion offers were distributed by brands, which is a 25% year-over-year increase (Marketing Charts).
Promotions are the backbone for most online businesses, yet even some of the biggest companies and smartest marketers are still doing it all wrong. Read the following if you want to level-up your promotion game in 2019 or get in touch to learn how a promotion infrastructure like Talon.One is helping all kinds of businesses.
20 Promotion Marketing Statistics & Tactics
Personalized homepage promotions influenced 85% of consumers to buy while personalized shopping cart recommendations influenced 92% of shoppers online (Kibo).
Tactic: Create dynamic and relevant discounts for customers to enhance their shopping experience and incentivize purchases. When a customer logs into your site or places an item in their basket, trigger a personalized notification that suggests adding a specific product to qualify for a free gift or discount.
The top tactics used by retailers for customer retention were discounts (77%), free shipping (52%) and loyalty program points (44%). A majority (51%) of retailers in this study offered loyalty programs (eMarketer).
Tactic: To actually improve customer retention, invest in a marketing tool that enables you to run all types of promotions in one place. If you built your own discount or coupon tool and your business is growing, 2019 might be the time to outsource and implement a more robust promotion infrastructure.
From North America's largest Loyalty Program study, 81% of Program Members say that Loyalty Programs make them more likely to continue doing business with brands and 66% modify spend to maximize loyalty benefits (HubSpot).
Tactic: A loyalty program can be as simple as rewarding high-value customer segments with a coupon or gift card for their next purchase over a certain amount. Be sure to clearly communicate the goals of the program so customers clearly understand that your brand’s loyalty experience is a benefit for them.
Companies lose an average of $62 billion annually due to poor customer service (NewVoiceMedia).
Tactic: Give your customer support agents a platform to create customized coupon codes on the fly to efficiently solve support cases. They should have the flexibility to adjust the value of codes based on the severity of support cases to ensure optimal customer experience.
48% of shoppers surveyed say that a discount sped up their purchasing decision (RetailMeNot).
Tactic: Product bundling discounts are a great way to increase order value and incentivize the purchase. If a customer places a specific item in their basket, offer them a discount off their entire basket if they purchase a second or third item.
60% of Online Shoppers Abandon Their Carts Because of Unexpected Extra Costs (Baymard Institute).
Tactic: Reward customers with free shipping, eliminate tax or fees if they qualify for the discount based on criteria like order value, purchase history, location or even time of day. Ensure your promotion system has the flexibility to turn campaigns on and off and adjust criteria, so you can test and identify what promotions reduce cart abandonment.
75% of senior retail executives from the UK and France said they plan to invest heavily in developing mobile apps, coupons and payments (eMarketer).
Tactic: If you plan to invest in retail technology this year, find a solution that enables your marketing teams to launch promotions without a developer, target specific user segments with dynamic discounts and manage referral programs, coupons, product bundles and loyalty programs in one platform.
52% of People with voice-activated speakers would like to hear about deals, sales and promotions from brands (ThinkWithGoogle).
Tactic: Do you even have a voice marketing strategy? Having a secure and flexible way to manage and store coupon codes will ensure your promotions work seamlessly with your new voice strategy.
65% of consumers say their loyalty is influenced by companies sending personalized or exclusive offers/discounts (Salesforce).
Tactic: Set up event-based discounts for customers to reward behavior, like when they make over 5 transactions or have been a member for X number of days. Tailor your promotion criteria to give different segments different discounts relevant to their stage in the customer lifecycle.
70% of marketing leaders say their companies are increasingly competing on the basis of customer experience (Salesforce).
Tactic: By crafting personalized promotions at each step of the customer journey, you can offer a more memorable and engaging customer experience to users that really help you stand out from the competition.
Gift card recipients spend on average $38 more than the value of their gift cards (First Data).
Tactic: Depending on the products or services you offer, gift cards are a great way to drive ROI, especially during the holidays. When launching an online gift card program, consider how you will validate purchases and calculate the card balance to give the best customer experience.
Over the last five years, overall Customer Acquisition Cost has risen almost 50% for B2B and B2C companies (ProfitWell).
Tactic: A great way to reduce CAC, get new customers and reward the loyal ones is to set up a referral program. Add levels of granularity to your program and reward high-value customers with more compelling incentives for every successful referral.
61% of shoppers today look for discounts online through retailer websites and apps — a 20% increase from 2014. 71% of surveyed shoppers want a single resource for all of their discounts and offers (RetailMeNot).
Tactic: Now more than ever shoppers are looking for discounts, but that doesn’t mean you have to give 20% off your entire site. Offer different types of discounts to your customers depending on their traffic source, recently purchased products, the day of the week, a cultural holiday/celebration or items in their shopping cart.
The majority of shoppers say they always or often look for offers and discounts in these categories: clothing and apparel (71%), travel (68%), grocery (67%) and electronics (57%) (RetailMeNot).
Tactic: Work with third-parties to create coupons with compelling discounts for customers and increase your reach. Don't forget to add redemption limits, attribution tracking and budget limits to the codes so you can monitor the campaign or pause it at the first sign of fraud.
9 out of 10 shoppers are not absolutely certain of the brand they want to buy when they begin looking for information online via their smartphones (ThinkWithGoogle).
Tactic: Offer new customers a time-sensitive coupon code to use on their first purchase. Set additional criteria like location or order value to limit fraud. If you advertise the code, add usage limits and attribution to track behavior and further segment users.
55% of Americans make product or service recommendations to others at least once per month and 71% say “a great experience” spurs recommendations (Convince & Convert).
Tactic: Reward your engaged customers with compelling discounts or exclusive rewards that make them feel valued by your business and encourage brand advocacy. Give them an opportunity to leave a review or share feedback and thank them for it with a gift card for another relevant brand or service.
64% of travel companies fail to understand their customers or why they are loyal to their brand. Only 50% of organizations say they collect a wide range of customer data and augment it with third-party sources (Collinson Group).
Tactic: Determine the most effective loyalty program for your business by looking at customer behavior and testing the best reward strategies for your customers. Choose a flexible solution that allows you to test different criteria for qualifying for rewards so you can better understand customers, but does not restrict you to one type of loyalty setup.
43% of those who used their phone in stores over the holidays to shop said they did so to look for deals or savings, and 52% of shoppers think getting deals on their smartphone while in stores is a shopping trend that is both cool and something they’d use (ThinkWithGoogle).
Tactic: Is your coupon or discount solution integrated with your mobile marketing platform or CRM system? A great way to deliver engaging promotions is via mobile. In 2019, you will lose a lot of customers if your promotion strategy is not optimized for mobile.
Studies show that by 2018, 18% of all retail sales will take place online and by 2040, it is thought 95% of purchases will be facilitated by e-commerce (Nasdaq).
Tactic: Every business will be transacting online in the very near future, so it only makes sense to future-proof your payment and pricing strategies with a powerful promotion infrastructure that will scale with your company. If you are facing the “Build or Buy” software dilemma, don’t forget about the hidden costs of maintaining and scaling your own solution.
Forecasts show that US smartphone retail mcommerce sales will grow nearly 38% in 2019, reaching $205.15 billion. This will account for over three-quarters of US mcommerce sales (eMarketer).
Tactic: It’s no question that your coupons (and all aspects of your business) should all be designed for smartphone users. Your customers spend most of their lives on their mobile, so promotion touchpoints like viewing coupons, entering codes and the checkout page must be optimized for mobile.
After reading these statistics, now you understand why it's time for businesses to deliver smarter promotions. 2019 is the year to finally get creative with your promotions. there are so many ways to grow your business using promotions, the only limitation is your technology.
If you want to use promotions to grow your business and drive revenue in 2019, building an effective promotions strategy is the first step.
Next, you should have the right kind of promotion solution in place so you can effectively execute your promotion strategy.
We know it can be tough to get the perfect mix of pricing, reward, effort, timing and communication and business sense to get your promotions right, but hopefully, you can steal at least some of these tactics kick off the year with a bang.
In conclusion, may 2019 be the year your marketing teams finally deliver effective promotions that your customers engage with and that your business can profit from.
Interested in learning more about how a promotion infrastructure can take your business to the next level in 2019? Get in touch and let's discuss your promotion strategy!
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