Playbook for higher margins with AI + iPad mini giveaway

 
Instead of leaning solely on sitewide discounts, they split their promotional budget into two strategic streams – one dedicated to customer acquisition and the other to boosting conversions.
 
The results were nothing short of remarkable.
 
During the Black Friday – Cyber Monday sale, the retailer not only saved millions but also significantly boosted their profit margins. Even though their top-line revenue was down by 40% compared to the previous year, the innovative strategy had more than compensated for it. By providing strategic discounts precisely when customers needed an extra nudge, this leading furniture retailer discovered the secret to greater profitability without sacrificing their bottom line.

 
STEP 1: Trim down your investment in sitewide promotions for customer acquisition. You can either reduce the advertised discount value in scheduled promos, for example, instead of a 25% sitewide offer and introduce a 23% off. Alternatively, consider reducing the frequency or duration of sitewide promotions. A mere 2% decrease in sitewide promos can free up the budget for a generous 12% unadvertised targeted discount to enhance conversion rates.
 
STEP 2: Repurpose the budget you’ve saved to boost in-session conversions – strategically deliver unadvertised single-use discounts, so-called “real-time offers,” exclusively to those shoppers who are undecided but influenceable and need that extra nudge to make a purchase.
 

• If your offer system does not support stacked promos, then you could offer an alternative, more appealing promo for your on-the-fence shoppers.
• If you can stack offers but are concerned that an additional discount will be too noisy, you could use a non-monetary offer such as free expedited shipping on top of existing sitewide discounts.

It’s not uncommon to see a remarkable 30% increase in conversion rates with real-time offers among this particular group of on-the-fence shoppers.
 
THE RESULTS:
Higher total generated revenue and higher profit margins without altering your total promotional spending. This is usually just the first phase of the strategy – over time, this approach can lead to unprecedented cost savings in your promotional budget.