Promotions

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PromotionsPromotions
+3+3
Stacked (vs single) discounts work better

Stacked (vs single) discounts work better

Stacked discounts (e.g. 15% sale + 10% online coupon) led to up to 16% higher purchase intentions vs a standard discount of the same amount (25%).

Thomas McKinlay
Thomas McKinlay
PromotionsPromotions
+2+2
Free experiences > free products

Free experiences > free products

People prefer experiences (e.g. a kitchen tour) up to 4x more than physical objects (e.g. a free dessert) as rewards, and spend more before and after an experience reward.

Thomas McKinlay
Thomas McKinlay
PromotionsPromotions
+2+2
Make small discounts a gamble

Make small discounts a gamble

People were up to 92.6% more likely to choose an uncertain deal (e.g. 10% chance for a free night’s stay) vs. a small guaranteed discount (5% off per night).

Thomas McKinlay
Thomas McKinlay
Customer ExperienceCustomer Experience
+3+3
Don’t over-restrict limited-time offers

Don’t over-restrict limited-time offers

Overly restricting limited time offers (e.g. too short time, strict refund limits) can reduce sales by up to 68%, compared to no offer at all. Try to keep them 1 day long.

Thomas McKinlay
Thomas McKinlay
PromotionsPromotions
+2+2
Make your discounts a bit harder to get

Make your discounts a bit harder to get

Requiring a small task to access a discount increases sales (e.g. type a code, solve a CAPTCHA). In experiments, redemption rates were up to 59% higher.

Thomas McKinlay
Thomas McKinlay
PromotionsPromotions
+3+3
Discount coupons: when to give % off vs $ amount off

Discount coupons: when to give % off vs $ amount off

Use % off (e.g. 20% off) when your promotion is store-wide. Use $ off (e.g. $15 off) when your promotion is specific to one product. Sales were up to 42% higher.

Thomas McKinlay
Thomas McKinlay
PromotionsPromotions
+3+3
1,001 sells more than 1,000

1,001 sells more than 1,000

People were willing to pay up to 3x more for a watch when the available product quantity was set to 1,001 pieces vs 1,000.

Thomas McKinlay
Thomas McKinlay
PromotionsPromotions
+3+3
When to use vouchers vs free gifts for promotions

When to use vouchers vs free gifts for promotions

In promotions, giving a voucher for a free gift (vs giving the free gift directly) increased sales up to 52% when the gift was low-value.

Thomas McKinlay
Thomas McKinlay
PromotionsPromotions
+3+3
Promotions in italics are more effective

Promotions in italics are more effective

Using a slanted font like italics signals urgency. In experiments, 3x more people clicked an email and were 31% more likely to say they would buy from a Mexican restaurant.

Thomas McKinlay
Thomas McKinlay
PromotionsPromotions
+2+2
Match promotions to big events

Match promotions to big events

Price promotions themed and timed around popular events (e.g. Olympics) led to 13% higher sales on average, and up to 48% higher during the Winter Olympics of 2010.

Thomas McKinlay
Thomas McKinlay
PromotionsPromotions
+3+3
Ask for something in return for your free offer

Ask for something in return for your free offer

Requiring something small in return (e.g. fill out a survey, watch an ad), does not hurt demand for free products or offers - it might even increase it.

Thomas McKinlay
Thomas McKinlay
PromotionsPromotions
+3+3
Don’t give free shipping, offer coupons instead

Don’t give free shipping, offer coupons instead

Free shipping increases sales but also returns, usually hurting profits. Instead, give a discount coupon equal to the shipping cost.

Thomas McKinlay
Thomas McKinlay