Bonuses are a great way to increase online sales. However, they need to be used correctly. We discuss them in the text below.
E-commerce is no longer the easy ride it was ten years ago. With a saturated market and adverts at every click, getting people to your domain is tough. Once there, the average person spends 15 seconds on a website, so getting them to convert is another tough step entirely. In the article below, we discuss how to utilize online bonuses to increase sales and facilitate this process.
What are Bonuses?
A bonus is the addition of something else when you make a purchase or sign up for a service. They can take many different forms. For example, you may open a packet of cereal and get a bonus inside in the form of a toy for your children. You may buy a new automobile and get bonus upgrades or a car care kit. This differs from a discount, which is a reduced price for a product.
The truth is that bonuses work. A recent study showed that 82% of customers would increase the frequency of their shopping with a brand if they had great offers. Moreover, having a reward increases the likelihood of the person making a referral to friends or family, though the size of the reward does not matter. Thus, a small incentive can go a long way.
Some industries have almost mastered the art of providing a bonus to incentivize new customers. One is the iGaming sector, which delivers online casino games like poker and digital slot machines. They will often give a bonus as matched credit or free spins. In some cases, this does not even require a deposit, meaning people do not need to buy a product to get the reward.
Understanding Your Customers
The art of selecting the perfect bonus is about knowing your customers. Take the above example from iGaming. Casinos know people want to try games and services out, and they know they want the chance to win money without staking their own bankroll. Thus, the operator is providing this. You need to follow the same principle, making sure your bonuses relate to your overall goal, and product and are something your customers would want.
Try to make sure the bonus is something that will enhance your existing offering. In the above example, people get free credit to play games. However, your business will be very different. Your bonus could be an upgraded service or products that relate to the item. For example, if you are selling ovens you may offer complimentary top-of-the-range kitchen items to use it with.
The bonus is also about knowing what drives customers to take part. This can be broken down into three areas. The first of these is value added. When people see bonuses, they believe they are getting something worthwhile added to their purchase. This is a very big drive for most people.
A second one is the fear of missing out. This is bigger than ever, in the digital age when people want to be part of something. Giving people something exclusive or limited makes them feel happy and increases brand awareness, while if they miss out they often feel the opposite. Returning to the iGaming example, this is particularly useful in competitive markets such as Ireland, where there is a multitude of operators all trying to attract new customers with the best offers.
Most important of all is that customers often have reciprocal principles when it comes to bonuses. As they are provided something of value by a brand, they often return the favor. This takes the form of brand loyalty and returns custom. This is just as vital as attracting new customers.
Popular Ways to Use Bonuses
There are some quite popular ways to use bonuses to increase conversions. You don’t just have to attach something to a product and hope it brings in sales. In fact, being much more clever about the approach often yields better results.
Think about offering a second product for half the price. While this does skirt the lines of a bonus and discount, it is surprisingly effective. For example, if someone bought a hamper from your food store, offer an additional one for a 75% ticket price, or even half price. This does tend to work best when you are using low to medium-ticket-priced items.
Another is to use bonuses to incentivize advanced orders and payments. If you have a product coming out in the next few months, you may provide a bonus to those who buy before the release date. This can mean your sales are big before the item even hits the shelves of stores.
Lastly, make sure bonuses are always time-limited. If they don’t have a closing period, then they are easily forgotten about and often not used. By narrowing the window of opportunity for a bonus, you can create a spike in sales in a short period of time. This can be extremely effective in calendar periods where you traditionally have a drop in sales.
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