Conversion Rate Optimizing Discounts

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Discounts became almost a crucial part of the modern e-commerce. One could argue that discounts are even overused. Sometimes as a visitor, I’m not really sure if I’m actually getting a discount or is that a standard product price masked as a discount.

Conversion Rate Optimization is a magical part of internet marketing that comes in handy when applying discounts to your online store. How do you know what kind of discount is going to produce better conversion rate? You test it. Try Google Website Optimizer, it’s integrated with Magento.

For example, a store could have a certain product on a 15% discount. You are advertising this really cool special offer everywhere and when thinking about conversion rate optimization you usually try different banner design and placements for this offer.

However, you should start thinking out of the box and think about applying a different discount. In some cases, 15% of product price might be the price of shipping, why not try to offer a free shipping for that product instead of the 15% discount on price. Simply put both of these offers on a conversion rate optimization test and see which one has a better conversion rate.

This process might make you more money not only by increasing conversion rate but also on giving less discount. It isn’t written in stone that more discount means better conversion rate. Different numbers have different psychological effects on shopping and sometimes a smaller discount could provide better conversions.

Another important thing you should test when talking about discounts is percentage versus fixed number discount. For example, 10% discount doesn’t sound a lot, but if that number is actually $ 120 discount, you should totally test $ 120 discount vs 10% discount banner and see which one performs better.


About Toni Anicic

eCommerce Consultant

SEO. Professional gaming. Home-brewed beer. Magento Certified Solution Specialist.

Read more posts by Toni / Visit Toni's profile

3 comments

  1. I partially agree, I personally feel rather then giving discounts often better to have shipping free. which don’t make impression and people feel website mostly have discounts running.

    I feel having discount often can make wrong impression as well.

    Giving Discount on web is i feel tricky.

    Regards,

    Manish

  2. I use clicktail, it helps me know what is happening on my site and its heatmaps and videos show me i can increase my conversions

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