‘Why sales & discounts hurt your ecommerce brand’ – ‘Econsultancy’ Blog
Arie Shpanya says, “With another holiday shopping season (and post-holiday clearance) in the rearview mirror, online retailers are taking down the sales signs and getting back to business as usual.
Although business may become out of the ordinary for some, that sales spike can shoot as high as Mount Everest and can fall like a rookie snowboarding down it.
None of those customers that were hooked by your “Buy One Toaster, Get Three Bread Loaves Free” deal came back for more dough.
This shouldn’t be surprising. According to a Coherent Path study, shoppers whose first purchase is induced by a discount are 50% less likely to make a second purchase”.
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