Discounts should be designed to be as attractive as possible to customers, so that the coupon download rate and the coupon redemption rate are as high as possible, or so that more sales are achieved. In addition, discounts should also be designed in such a way that they provide an incentive to purchase more than planned.
With Gonnado, you can also offer different discounts according to certain rules. For example, you can perform A/B testing to find out which discount gives you the most profit. You can also vary the discount depending on the channel you are targeting the customer on, or depending on where in the sales funnel the customer is. An example would be an online store that offers a 10% discount in the first step. Customers who do not secure the offer will see a 20% discount in the second step, which is offered to them via retargeting after they leave the website.
Percentage price reduction
A percentage price reduction, such as a 20% discount, has the advantage that the incentive for the customer always remains roughly the same, even if the value of the shopping cart varies. This form of discount is therefore particularly suitable for companies whose shopping cart value varies greatly. The discount is also well suited if the shopping cart value is generally very low, because the discount in the form of an absolute amount is then less attractive compared to the percentage. If a percentage discount is less than ten percent, an absolute discount should be preferred instead, if possible.
Absolute price reduction
An absolute price reduction, such as a 10 discount, has the advantage that customers can easily imagine the equivalent value of the coupon by naming the exact amount. This is especially advantageous when customers do not yet know what they will buy. In addition, this discount can be combined with a minimum purchase value without customers feeling disadvantaged because it is easier for them to understand. Furthermore, absolute price reductions are also particularly suitable when the trade margin of the products sold varies greatly.
A free product, such as a free coffee, has the advantage of being very attractive, even if the equivalent value of the product is not high. It can be used unconditionally, for example in terms of a sampling campaign where you want to motivate potential customers to try a new product. Or it can be used with a condition attached to the purchase of another service, as in the case of a free coffee that you can only get in a restaurant that is located in an amusement park to which you have to pay admission.