In our last edition of Smarter Spotlight, we switched our focus from eCommerce to the financial services industry to discuss how they can utilize a form abandonment campaign to re-engage abandoning customers. This week, we’ll talk price reduction alerts and why millennials prefer them from their favorite retailers.
Everyone loves a sale, especially millennials. In a recent study, we found that 63% of millennials are influenced to shop during a retail sale or promotion, and 30% of millennials classify themselves as bargain shoppers. This could be for several reasons, one of them being that millennials have access to a world of information at their fingertips thanks to smartphones. This means that price comparing and saving is easier and quicker than ever before.
With price having a significant influence on millennials’ purchase decisions, it should come as no surprise that price reduction alerts are a critical campaign for retailers. Not to mention, 50% of millennials prefer a marketing email that notifies them when an item they’ve carted goes on sale.
Think of it this way. A customer has been browsing running shoes on your website and adds a pair to his cart. Before completing the purchase, he checks his bank account and decides he doesn’t have the funds right now and wants to wait until his next paycheck to buy new shoes. In the meantime, he scours Amazon and Google for similar shoes at a lower price to ensure he’s making the smartest purchase decision.
With product catalogs constantly changing, price reduction alerts let your customers know when products they have viewed multiple times have decreased in price. This email provides those with the highest propensity to purchase the opportunity to take advantage of the sale before inventory runs out. Not only does a personalized message encourage them to convert, but it keeps customers coming back to your site and brick and mortar, thus increasing the likelihood of brand loyalty.
Still, you want to be sure there is a substantial price change to warrant an alert. We suggest at least 10 percent and a minimum of $5 reduction. Also, you want to send only one email per person that includes multiple discounted products when available.
On average, you can expect to see more than $1 in revenue per email with price reduction alerts. And as an extra piece of advice, we recommend not only using these alerts during holiday season, but after peak holiday season, too. Due to excess inventory and additional sales at the end of year, this campaign could play a major role in your post-holiday strategy.
We hope you enjoyed this edition of Smarter Spotlight. Make sure to check back next week for a breakdown on model-based campaigns. See you then!