During the holiday season, there is bound to be a surge in both online and offline shopping. People all over the world are under pressure to find the best gifts for their loved ones and get a head start on their Christmas shopping.
Along with an increase in shoppers, comes an increase in competition. If you’d like your eCommerce store to stay ahead of your competitors, you’ll need to adopt effective pricing strategies. While consumers are looking to buy more, they’re also looking to spend less, which is why they are likely to be enticed by great deals and discounts.
By offering the right types of discounts, you can maximise your holiday sales opportunities, prevent shoppers from abandoning their carts and encourage new customers to try your brand.
In this article, we’re going to discuss the meanings and importance of discount pricing strategies and AOVs. We’ve also come up with a few effective holiday discount pricing strategies to help you attract customers.
What is a Discount Pricing Strategy?
Discount pricing is a promotional pricing strategy where the original prices of products and services are lowered, with the ultimate goal of increasing sales. By applying discounts to products via sales, bundles, codes or coupons, you can encourage your customers to buy more products.
A reduced price often causes customers to perceive the discounted product as more valuable. Deep discounts and flash sales have proven to be highly effective in increasing website traffic and improving conversion rates and revenues.
In order to properly activate and monitor your holiday pricing strategies and discounts, you’ll need an efficient eCommerce platform. At Actuate Agency, our eCommerce experts can provide you with the best platform to help you smoothly grow and maintain your online business. We work with high-quality eCommerce platforms like Magento, Shopify and Aero to offer the best results.
Call us for effective holiday pricing tips and tricks.
What is Your Average Order Value?
The average amount of money spent by your customers on each transaction is called your average order value (AOV). You can increase your AOV by convincing your customers to buy more products and spend more money at your eCommerce store.
The average order value formula is your total revenue/your number of orders.
Another similar eCommerce metric is the average basket value, which measures the number of items that your online store sells per transaction.
Holiday Discount Pricing Strategies
There are numerous ways to increase your AOV and drive traffic to your website. Let’s check out a few helpful discount tactics.
1. Buy One, Get One Free
The BOGO discount is one of the top performing pricing strategies in the eCommerce industry. It is used by multiple brands and has been quite successful in boosting sales.
In this pricing strategy, you can give away a free product that’s either exactly the same or related to the one being purchased by your customer. The customer will then only have to pay for the product with the higher value.
2. First-time Customer Discounts
As Christmas shoppers are often looking for the best holiday deals and offers, this is your opportunity to attract new customers to your online store. New visitors will often judge your website within the first few seconds, which is why you need to make a good first impression to keep them browsing.
Aside from adding some attractive Christmas decor to your website, you can also offer first-time customer discounts. Customers are more likely to try out new brands if they can purchase the products for a lower price.
Get in touch with us to help you add a festive touch to your eCommerce store and creatively display your holiday discounts.
3. Cross-selling, Up-selling and Bundling
Cross-selling and up-selling are great ways to increase your AOV. While up-selling promotes more expensive and upgraded products, cross-selling convinces customers to buy complementary products alongside their main purchase.
Similarly, you can create product bundles, allowing customers to buy more at a lower price. You can also let your customers create their own customised bundles and packages. These strategies can be adapted within your website’s product pages, shopping carts or checkout process.
Contact Actuate Agency for the Best Holiday Discount Pricing Strategies
Looking for effective discount pricing tips and eCommerce strategies to increase your holiday sales? Actuate Agency has got you covered!
We are professionals in web development, UI/UX designs and eCommerce strategies. With our expertise, we can provide you with a wide range of eCommerce solutions to help you effectively grow your online business.
Our team of experts can help you stay ahead of the competition and ensure that your eCommerce business continues to move in the right direction.