For most shoppers, buying something for the first time at full price without having any personal experience with the item or peer reviews to lean on can be intimidating. In the absence of a special deal, customers would otherwise abandon their carts. Some shoppers feel a first-time buyer discount is a prerequisite for brands looking to acquire new customers. Fortunately, retailers can rest assured that any coupons issued may still attract loyal, lifelong customers.
As long as shoppers find value in your offerings, coupon clippers may even purchase your products again later at full price. Think of discounts and promotions as an easy way to soft-sell shoppers. Many times, when a coupon is available, customers may spend more of their energy and time convincing themselves not to purchase. Brands offer a risk-free proposition to consumers who can try something new for free. The stores that do manage to impress shoppers with their samples earn consumer loyalty and trust and generate profitable sales due to our natural desire to reciprocate goodwill. For an article in The Atlantic, associate editor Joe Pinsker explains ,.
Retailers, too, have their own reasons to love sampling, from the financial samples have boosted sales in some cases by as much as 2, percent to the behavioral they can sway people to habitually buy things that they never used to purchase. Stores that give away free value start new customer relationships off on the right foot. According to academic and behavioral scientist Dan Ariely, zero is a special price.
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Therefore, retailers who price items at a cost of zero or give things away for free offer special appeal to everyday customers. Defying conventional logic, consumers are drawn to free items more than they are to discounted products, even when the discount helps shoppers save more money or get more value from their purchase. In an Economist post on the psychology behind discounting , the author explained that researchers from the Carlson School of Management at the University of Minnesota conducted an experiment to learn more about how consumers reacted to discounts and freebies.
As emotional creatures, people are more inclined to accept free offers than discounted ones.
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The results speak for themselves. Need to make your offers more compelling? Try out CM Commerce. You can personalize each email based on purchase history, and start sending abandoned cart emails with pre-made workflows. Just sign up, turn them on, and see your ecommerce brand grow.
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Source: Really Good Emails Though shoppers now practically demand deals, they still find delight and joy in receiving an exclusive offer. Deals boost overall revenue.
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