Three Easy-to-Implement Tips for Maximizing Holiday Revenue

By Scott
TOPICSConversion
Share
FacebookTwitterLinkedInShare

Want more sales and profits this holiday? Your answer, likely, is yes.

If you haven’t started executing your holiday marketing strategy, however, it may already be too late to take advantage of early sales. Recent reports suggest that 11% of the U.S. population (32 million people) has already started holiday shopping.

For those of you still looking for last-minute ideas for growing holiday revenue, consider these last-minute merchandising tips that have been proven to be effective over the years.

#1 – Sort items on your category pages showing highest-priced items first

Most category pages will sort items from lowest to highest price. But when we ran tests where we sorted items by highest to lowest price, something magical happened. Conversion rates didn’t change much, but average order value went up significantly.

image 1Imagine you are shopping for winter coats. If the first item you saw on the list was $1,495, you might think, whoa, I wouldn’t consider spending that. But compared to a $6,495 coat, the $1,495 option seems more approachable. Even lower-priced items further down the list, like a $495 option, might seem like a downright steal.

By stacking high-priced items toward the top you can get shoppers to spend at the higher range of their budget. When you lead with low-priced options, the opposite happens.

#2 – Increase perceived value by making something “rare”

When I was 10 years old I was obsessed with baseball cards. I saved up as much money as I could, and traded as often as I could, to get the rarest cards of the most popular players.

I never wanted the Donruss cards because those were the most common. I wanted the Upper Deck cards, because they were the least common. And somehow I was under the illusion that these pieces of cardboard, that cost a fraction of a penny to produce, would someday have tremendous value.

These baseball card companies were brilliant. By introducing the concept of scarcity, they created huge demand for their products.

This is an eCommerce tactic you can use as well. Hotels.com, for example, applies this type of messaging as you browse.

image 2

They tell me 4 people looked at the hotel I’m viewing in the last hour. And that only 2 rooms are left.

These messages are designed to cause me to be fearful that I’ll be locked out of a room. They are designed to motivate me to prioritize booking now over continuing to search for the best deal.

And they are incredibly effective. If you want to boost sales on your items, tell shoppers how many are left, introduce language suggesting quantity limitations, and attach a timer to your on-site offers.

#3: Tie cart abandonment offers to high-margin items

Imagine 100 shoppers entering your store over the next 5 minutes.

 

image 3

On average it’s likely that:

  • Only 60% of visitors will browse, leaving you with 60 browsers
  • Only 13% of browsers will add to cart, leaving you with 8 potential buyers
  • 75% of those who add to cart won’t complete a purchase, leaving you with only 2 buyers

Six potential buyers abandoned their cart in this example. Less than 20% of cart-abandoners will return within 4 weeks. And of those, only 5% will convert.

What this nets out to is that for every $1mm in revenue the typical store does, millions in revenue will be lost due to abandoned carts. That’s a lot of lost revenue!

Try Cart Closer

A few months ago we launched Cart Closer 3.0, which allows you to target offers to shoppers as they are abandoning their cart, with special offers that are targeted to high-margin items.

So if you’re making 65% margin on an item, it may be worth offering shoppers 15% off if they complete their purchase immediately. If it’s a low-margin item, you wouldn’t want to incentivize that.

By the way, if you want to check Cart Closer out, please click here.