Do you use Facebook Offers? You should and here is why.
Our customers ask us all the time what types of offers, coupons, discounts and deals they should be offering their customers, and how often they should be using them. On the plus side, these tools are a powerful weapon to convert clients, but when used inappropriately, they can make your business unprofitable. Follow this guide to Facebook Offers for Your Business to increase customer loyalty.
Offers are easy and quick to implement, easy to track, and known for increasing conversions and customer loyalty. On the downside, they decrease margins and profitability, and can damage your brand. Offers can also lead to decreased sales when customers are trained to wait for the next offer cycle.
Consider your brand strategy
If you want to position yourself as a higher end brand or if you have slimmer margins, you may want to consider sticking to customer loyalty type offers as oppose to weekly sales. On the other hand, if you have healthy margins deep discounting and daily/weekly sales might be better for hitting your goals. Ultimately, you need to consider if offers and the type of offer is the right strategy for your brand. Regardless, building an online business will generally involve a lot of experimentation to understand what works best. The best approach is to choose a goal for every campaign and offer, start small and measure the results.
Types of Facebook Offers
- Percentage Based Discount - The most popular way to offer discounts is percentage based discounts. This can include small incentive percentages like 5% or 10% off, larger discount to really drive sales like 20% and 25% or large percentages like 50%+ to liquidate merchandise that isn’t moving or old.
- Dollar Value Discount - Offers that are based on a dollar value can be positioned as a credit. This makes people feel like they’re wasting money if they don’t use it. In some studies, redemption of dollar based offers vs. percentage based offers can be as much as 175% greater. • Free Shipping - Shipping costs are often cited as the number one reason for shopping cart abandonment. Offering free shipping is a great way to mitigate this and increase conversions. Often this is used in conjunction with a minimum order size to help increase the average order value.
- Free Gift - A free gift with a purchase can be a great way to provide additional value to customer. If used strategically, it can also be used to increase average order size and/or to get rid of product that isn’t moving.
When and How to Use Facebook Offers
Small businesses can effectively use sales, offers, discount and deals to drive customer acquisition and conversions.
Here are a few ways:
- Weekly/Monthly Offers to Drive Sales and Meet Revenue Goals These are traditional sales used to drive increased sales. Many times sales are used at the end of a month or quarter to increase revenues to meet projections and goals.
- Prelaunch Offers If you’re still in the prelaunch stage of your business or maybe even launching a new product, you can use prelaunch offers to help drive traffic and peak interest.
- Holiday/Season Offers Black Friday, Christmas and New Years are the big ones, but the whole year is sprinkled with holidays that you can use to stretch revenues with offers.
- Abandon Cart Offers With close to 70% of all people abandoning their carts, abandon cart email offers can be a powerful tactic to bring those people back. Shopify websites have great build-in capabilities for abandoned cart recovery.
- Email/Newsletter Subscription Offer We’ve said it before - building an email list is extremely important for onlineretailers. By providing an offer in exchange for visitors’ emails address, not only do you increase the chance of a conversion, but you also get their email, providing you with the opportunity to market new products and offers to them in the future.
- Offers for Liking, Following and Sharing On Social One of the hardest parts of running an online store is getting word out. Giving visitors and customers an incentive to share your store with their social circles can be an effective way to create some inexpensive word of mouth.
- Referral Offers People are much more likely to purchase from you if referred by a friend or family member. Use this to your advantage and use offers to encourage referrals. You can choose to give a deal to the person referring, the person being referred or both.
- First Time Shopper Offer Providing a first timers offer could be just the nudge those first-time visitor needs to be converted to a paying customer.
- Exclusive Social Offers Exclusive offers on your social networks can be a great way to build a strong relationship with those that follow you as well as provide a reason for new people to follow and subscribe to your social channels, which will allow you to market to them in the future.
- Customer Loyalty Offers Rewarding customer loyalty can help build an even stronger bond while also only providing discounts to customers that already spend money with your online store.
- Exit Intent Offer Sometimes all it takes for to convert a visitor to a customer is a last second offer before they leave. An exit intent offer will popup just as your visitor is about to leave your site or close the tab, presenting them with a final offer to purchase.
- Retargeting Offer Retargeting offers are effective because they’re only shown to people that have been on your site before so they already know who you are. The ads serve as a reminder to come back and the offer serves as a nudge to purchase.
The experts at ENews Networks are here to help you decide which offers are right for you and your small business. We look forward to helping you meet your objectives, build your customer loyalty, and increase your revenue! Contact us
to get started today!