Thomas from Ariyh - 🎓 How email coupons drive sales
🎓 How email coupons drive salesIn a series of 70 experiments, 90% of the sales increase was because email coupons worked as effective ads and people bought other products, not because they used the special discount.New to Ariyh? Join 10,329 evidence-based marketers for 3min practical insights 💡 from scientific research 🎓 to get better marketing results 📈 Today’s insight is brought to you by… Campaign Monitor The Generation Z sea change is upon us. Marketers who aren’t evolving their strategies to engage this younger generation are already falling behind. While research has shown how Gen Z is different from any other generation, why these differences matter and what that means for retailers everywhere has remained hidden. Until now. Want to sponsor Ariyh? Here’s all you need to know. 📝 IntroCompanies often email targeted discount coupons to their customers. How effective are they, and to who should they be targeted? This study from Stanford and Booth School of Business, University of Chicago discovered a surprising result. Coupon emails are much more than simple discounts, and it doesn’t matter much whether people actually use the coupons - your sales will increase regardless. P.S.: Remember, you can create ‘special days’ for your brand and use them to send out creative and effective promotions Previous insight: When to use slow vs fast ads (100+ more insights here) Email coupons aren’t only discounts, they’re effective ads tooChannels: Email | Promotions | Discounts | Ecommerce 📈 RecommendationUse email coupons (e.g. “$20 off if you spend $100 on our new collection”) and target them to a broad range of your customers, not only those you think are price sensitive. Many people, probably most, won’t use the coupon (e.g. because it doesn’t cover all products, the minimum spend is too high) but will still visit your website and buy other products. They are especially effective in reactivating customers that haven’t bought in a while. 🎓 Findings
New here? Subscribe for the latest marketing research 💡 from top business schools 🎓 in 3min practical insights 📈 🧠 Why it works
✋ Limitations
🏢 Companies using this
⚡ Steps to implement
🔍 Study typeField experiments (analysis of 70 experiments at a large North American ticket resale platform between July 2009 and December 2011) 📖 ResearchDo targeted discount offers serve as advertising? Evidence from 70 field experiments. Management Science (June 2016). 🏫 Researchers
Remember: This is a scientific discovery. In the future it will probably be better understood and could even be proven wrong (that’s how science works). It may also not be generalizable to your situation. If it’s a risky change, always test it on a small scale before rolling it out widely. Rate today’s insight to help me make Ariyh's next insights 🎓 even more useful 📈 How was today’s insight?
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Older messages
🎓 When to use slow vs fast ads
Tuesday, June 7, 2022
Ad speed influences which type of message works best. Slow ads work best to communicate benefits and quality. Fast ads are best for features and prices.
🎓 Use cold colors in B2B, warm colors in B2C
Tuesday, May 31, 2022
B2B social media images attract more positive engagement when they use cold, dark colors because they signal competence. Warm colors trigger emotions so they work better in B2C.
🎓 Clever humor boosts your brand
Tuesday, May 24, 2022
Clever and witty humor increases feelings of brand warmth and competence, and makes people more likely to engage with you. Generic humor doesn't work.
🎓 When 1¢ sells more than free
Tuesday, May 17, 2022
Promotions that offer an extra upgrade (eg a bigger size, an additional product) sell more if people need to pay a small amount for the upgrade (eg 1¢), instead of getting it for free.
🎓 Paid subscriptions increase sales of your other products
Tuesday, May 10, 2022
A paid subscription that gives special benefits to members (eg Amazon Prime's free shipping) increased spending at a retailer by more than 3x. Two-thirds of the boost was psychologically-driven.
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