Discount, rewarding points, free gift etc are three among several methods to increase revenue. They might be s short-term strategy used when inventory is moving slower than expected, or even a long-term one for building customer loyalty scheme.
It is a fact that not all discount techniques are created and launched effectively. If other traditional methods seem to be less favourable to customersnowadays, Buy One, Get One (BOGO) is still a powerful promotion tool. According to behavioral economics researcher Dan Ariely, shoppers generally overvalue the benefits of “free” even when compared to higher-quality items at a discounted price.
To help you boost sales and profits, we point out two benefits of BOGO.
Moving Inventory While Profiting
Forget your anxiety about your less desirable inventory because BOGO can help you get rid of them quicker but still brings you profit. Instead of lowering the price of those items, just offer one item for free together with selling another at the initial price. The customers’ behavior would surprise you about the difference between the two methods which seem to have similar revenue. It can be explain by human psychology as to shoppers, no matter how large the discount, it does not stand a chance against “free.”
Better Response from Shopper
It is undeniable that BOGO is a win-win situation for both retailers and consumers. According to a recent report from AMG, 66% of shoppers admit that they like BOGO the most out of all discount promotions and 93% of respondents report that they have taken advantage of BOGO promotions at least once. While shoppers think that they’ve got a good deal from a site, sellers gain both profit and customers’ satisfaction which has long-term benefit to any business.
Easy to set up, simple to run, lots of benefit to gain, get Free Gifts app to create your BOGO today!