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The 6 Most Effective Ecommerce Discounts to Promote with PPC

Before we get into ecommerce, let’s address the elephant in a room: Amazon.

Amazon has been the market leader in direct-to-consumer sales and is now a major player in call center software.

This ecommerce giant accounts for nearly half of all online shopping orders. Amazon Prime members account for nearly 50% of all online shopping purchases. Yes, it is difficult. But impossible? Not at all.

Discounts are a powerful way to compete with the commerce giant. Combine them with PPC ads for strategic results and you have a winner.

Discounts are often seen as a sign that you’re undervaluing your product. Customers will pay more if the products are good. Discounts can be a powerful form of advertising .

Let me tell you why. I will also share six of my favorite discounts that you can use in your PPC campaigns to increase sales . Let’s get started.

What makes ecommerce discounts so effective?

Discounts are effective because of two psychological factors. Discounts create an urgency, which is a form of socialproof. Most discounts are very time-sensitive.

The FOMO can be a powerful that can motivate people to buy things they’ve been debating for a while. This is why President’s Day and Labor Day are so popular.

Some discounts work better than other. You can even get a discount with different words.

Many people are more likely to respond favorably to discounts that include the words “Save $X” than “$X Off”. Even though the final cost might be the same as the original, saving means that there was no loss. A benefit is a reduction in the amount of money.

This is the second psychological aspect to discounts at play.

People respond stronger to loss.  We are more attracted to things that help us avoid pain than things we enjoy.

Parachuting can be dangerous and you may not want to break your leg. (Assuming that you didn’t break your leg.

In most cases, the drive to avoid loss is more powerful than any benefit we may receive.

Let’s suppose you are comparing airline credit card like the ones shown below.

The Gold Delta SkyMiles Card gives you 40,000 bonus miles and $50 credit. You then notice that the $95 annual fee is due after the first year. So you decide to avoid this card and instead opt for one with no fee.

Another example: Let’s say you love swimming in the ocean. You probably do it at least twice per week.

You get stung one day by a jellyfish while swimming and the thought of getting in the water makes you numb.

Even if you have been swimming for many years, one experience can stop you from swimming again. The risk of being stung (the pain) can be more devastating than the enjoyment you get from swimming (the gain).

This is called loss aversion and it can be powerful, regardless of whether the perceived loss is money.

You now know why discounting is so appealing to people psychologically. Which discounts are best for PPC ads? These are six PPC discounts that will blow your mind if you test them on your audience.

1. 20% Discount on Orders Above $50, 30% off Orders Above $100

One of the easiest ways to increase your bottom-line is by increasing the customer’s spending.

You can think of it like this: While 20 customers might spend $10, four customers will spend $50. However, your PPC costs to get four customers are much lower than those for 20.

Additionally, people are encouraged to spend more time on the site by receiving X off orders above $50.

They are also more likely to spend more than $50 if they spend more time browsing. Therefore, a “Buy More and Save More” component that offers 30% off orders above $100 will increase the average order value (AOV).

While the business benefits are obvious, why is this so beneficial for customers? This coupon is by Carter’s. It’s a brand of children’s clothing.

Carter’s offers 20% off your order and free shipping. This is even more appealing.

Customers feel that they are getting a great deal when there is mention of clearance and other discounts.

Shoppers will work hard to reach that $50. The customer can get the last item for just a few dollars less than $50.

Housecall PRO is an online software program for home service businesses like electricians and plumbers. It offers a 33% discount which is more attractive than flat 25% or 30% discounts.

You can play around with the numbers to find the rate that customers prefer, but not below 15% to lose the deal’s value. Offer a flat amount, such as $5, if margins are tight.

2. Black Friday/Cyber Tuesday: 40% off

Black Friday and, more recently, Cyber Monday have been the most sought-after sales day for many years. Ecommerce now accounts for a greater share of Black Friday sales, with ecommerce sales growing 16.7% in 2018, while brick and mortar sales fell.

However, 20% discount on BlackFriday is not something you can expect. Consider offering discounts up to 40% for customers who expect deep discounts.

Alternate numbers are also possible, as they are more appealing to the eye. This ad is from Old Navy.

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