Tip #3: Offer the Right Incentive
Incentives rely heavily on consumer psychology. Shoppers today pride themselves on making thoughtful and well-informed purchase decisions due to the ever-increasing amount of information at their fingertips. Studies show that 88% of consumers conduct research online before making a purchase either online or in-store.
However, dedication to thorough research could mean that your customers are less loyal—the appeal of a better deal could potentially outweigh the value of their relationship with your brand. That’s why incentives and personalization are the two most crucial factors in encouraging customers to not only complete their purchases, but to keep coming back for more.
This is another area where leveraging customer data helps maximize outcomes. For example, Netmining delivers real-time insights into customer behavior and preferences, so marketers are more likely to hit the mark with effectively personalized incentives.
A customer who has filled their cart might exhibit high engagement and affinity for your brand, but could be put off by a high shipping fee. An on-site message or triggered email offering free shipping for orders above a certain threshold could encourage this customer to complete their purchase.
Another opportunity to incentivize comes in the form of offering discounts that can be used on later purchases. For example, an on-site notification that encourages customers to checkout with the items in their cart to get 10% off their next purchase. This offer also creates a feedback loop in which the customer is more likely to become a repeat buyer, as they don’t want to let their discount go to waste—therefore building lifetime value and extending their relationship with your brand.
As marketers know, the only way to understand which offers work best is to test them. Test early and often across variables, from the timing of messages to the channels you’re using to offer incentives. The more you test, the better positioned you’ll be to make the most out of your messaging and see the highest ROI.
Check in next week as we dive deeper into the variables of the customer journey, which now spans multiple channels and devices.