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DIGITAL DIGITAL DIGITAL

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DISCOUNTING DISCOUNTING DISCOUNTING

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Discounts work. But it’s not enough to simply throw out an o�er and hope for the best. Find out how today’s retailers are using new strategies—backed by data and analytics—to reach the right customers with the right o�ers in the right ways.

DISCOUNTS. EVERYONE’S DOING THEM.

DISCOUNTS. EVERYONE’S DOING THEM.

DISCOUNTS. EVERYONE’S DOING THEM.

97%of retailers use

discounting as a pricing strategy.1

68%of e-commerce

retailers find it very or extremely

e�ective1

Lift in performance metrics2

NOCOUPONSS.

48%Revenue per email

34%Unique

click-through rates

27%Transaction

rate

COUPONSCOUPONSCOUPONS

BUT DISCOUNTS CAN WREAK HAVOC ON LONG-TERM REVENUE. PERSONALIZATION CAN MAKE YOUR STRATEGIES EVEN MORE

SUCCESSFUL—AND CUSTOMERS MORE SATISFIED.

ALWAYS BETESTINGALWAYS BETESTINGALWAYS BETESTINGExtensive testing is key to an e�ective discounting strategy.

51%

75%

of retailers said discounts are one of the digital marketing components they most want to personalize.3

of shoppers want a personalized experience.4

53%

SO WHERE DO YOU BEGIN?

50%

of digital marketers conduct advanced A/B or multivariate testing.6

of retailers said data-driven marketing helps them achieve a competitive advantage in customer satisfaction.7

TOP BENEFITS OF REAL-TIME MARKETING

TOP BENEFITS OF REAL-TIME MARKETING

TOP BENEFITS OF REAL-TIME MARKETING

increased marketing e�ectiveness

increased customer satisfaction and experience

increased customer retention8

67% 60%76%

TWO TYPES OF TESTSTWO TYPES OF TESTSTWO TYPES OF TESTS

Are customers respond-ing to the o�er?

Was the o�er more e�ective in the first email or third?

How did it compare to other discount levels?

Did it lift customer lifetime value?

What was the e�ect on purchase frequency?

Which channels are most e�ective?

What’s the lift in short-term average order value?

LONG TERM: DOWNSTREAM EFFECT

SHORT TERM: IMMEDIATE IMPACT

SMALL STEPS, GIANT LEAPSSMALL STEPS, GIANT LEAPSSMALL STEPS, GIANT LEAPS

CONVERSION RATES

PURCHASE FREQUENCY

AVERAGE ORDER VALUE

LIFETIME VALUE

WHILE MOST TESTS PRODUCE ONLY INCREMENTAL LIFTS, OVER TIME THEY CAN HELP DRAMATICALLY INCREASE:

NEW CUSTOMERS

NEW CUSTOMERS

NEW CUSTOMERS

NEW OPPORTUNITESNEW OPPORTUNITESNEW OPPORTUNITES===

59% of digital marketers said discounts and bundles are e�ective for acquiring new customers.9

Segmenting new customers lets you measure the e�ect of an o�er on future behavior.

BUT HOW DO YOU KNOW YOU’RE OFFERING THE RIGHT DISCOUNT?

No incentive

10%Discount

20%Discount

$20 o�$100+

FreeShipping

31%

of retailers said percentage discounts were most e�ective

22%

of retailers said free or discounted shipping10

18% of retailers said they don’t actively track success10

EXAMPLE TESTEXAMPLE TEST

Today or two weeks from now? When you o�er a discount can

a�ect long-term value.

Tailor discounts to customers based on specific channels or

search terms.

Jump-start a lagging geography or

increase market share where you’re already successful

Personalize send times to reach all customers when

they’re most likely to convert.

THE MORE VARIABLES YOU TEST, THE MORE HELPFUL YOUR DATA WILL BECOME.

THE MORE VARIABLES YOU TEST, THE MORE HELPFUL YOUR DATA WILL BECOME.

THE MORE VARIABLES YOU TEST, THE MORE HELPFUL YOUR DATA WILL BECOME.

TIMING SOURCING LOCATION DAYPART

Which is why it’s so important for your discounting strategy to reach them in the right ways.

WILL COME FROM JUST

KEEPING EXISTING CUSTOMERS ENGAGED

KEEPING EXISTING CUSTOMERS ENGAGED

KEEPING EXISTING CUSTOMERS ENGAGED

80%

20%

OF FUTURE REVENUES

OF CUSTOMERS

MOVE BEYOND “DEAR <FIRST NAME>”

1:1 personalization lets you customize every aspect of your communications

EMAIL-ONLY VISIBILITY

EMAIL-ONLY VISIBILITY

EMAIL-ONLY VISIBILITY

360-DEGREE VIEW OF CUSTOMER INTERACTIONS

360-DEGREE VIEW OF CUSTOMER INTERACTIONS

360-DEGREE VIEW OF CUSTOMER INTERACTIONS

of digital marketers cited this as their biggest e-mail marketing challenge

VS. VS. VS.

51%

TIMING IS A BALANCING ACTTIMING IS A BALANCING ACTTIMING IS A BALANCING ACT

Discounting too rarely puts customer

retention at risk

DISENGAGEMENTMaking o�ers too

often can negatively a�ect your reputation.

BRAND DAMAGE

Use predictive analytics to better understand when,

how, and how often to communicate with customers.

LEARN MORESailthru can help you reach customers more e�ectively by helping you achieve a true single customer view backed by behavioral and interest data collected across every channel.

READ THE FULL DISCOUNTING GUIDE TODAY AT SAILTHRU.COM/XXX.

CHECK IT OUT