Issue 139: the top 5 studies on discounting PROPERLY

+ The Major Thing Your Media Buying Strategy Has Wrong

September 06, 2024

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BFCM vibes are hitting hard this week folks. If you’re not actively preparing for war with thoughts of Helm’s Deep flashing through your head, are you even e-comming? 🤷 

| TWEET OF THE WEEK

If you're reading this post, I'm going to assume 3 things about you:

  1. You might not be a giant psychology nerd like me, 😂 but I bet you dabble in marketing, advertising, or sales.

  2. If you dabble in marketing, advertising, or sales, you probably run discounts.

  3. And if you run discounts I'm assuming they usually end in a 7 or a 9 because that's what works...right?

If I'm on the right track here, good news - you're gonna love today's newsletter! Because today I'm going to show you what science has to say about discounting correctly and how to use psychology within your discounts so you can sell more with science.

How to Properly Build a $.99 Discount

Almost every brand I've ever worked with runs their discounts with a $.99 ending (or sometimes $.97)...but is that really the best way to do it? Should you use a $.99 discount? Or is there a better, more effective way to communicate the value you're offering?

​There's a ton of research behind the neuroscience of 7 and 9 (I can do a newsletter on this if you guys are interested), but according to the science, there's one simple hack that can boost the performance of any discount ending in $.99…

​$.99 discounts are actually more effective when displayed next to the original price.​

This works because people need context to decide what's worth spending energy on..and it's crazy easy to implement (especially in your ads).

Whenever you run a discount with a $.99 ending, just slap the original price next to the discount and you're good to go.

| YOUTUBE UNIVERSITY

The Major Thing Your Media Buying Strategy Has Wrong

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| QUICK SHOTS

  • @iamkevinkrieg 1m/month lander right here 💰 Love coming back to that brand to look at their ads & landers.

  • @ecomwithtom I made £330,928 in 90 days selling mushrooms 🍄 Ask me anything

  • Noah King Custom data segmentation is the best way to lower advertising costs on Meta/Facebook. I've been exploring this for the past year and have found three different ways to segment order data, making it a great option for a wide range of eCommerce businesses.

  • @sourfraser Creative testing is like any other experiment. Change one thing at a time and see what happens.

  • Ashvin Melwani We made some pretty big changes last year... With these changes our Contribution Margin improved by 133%, and we were able to lower our CAC by 30%. Let's break it down:

    @max_rosewater Here’s the fix for Checkout Extensibility breaking your CAPI, if your CAPI is still busted.

| HERE FOR THE MEMES

| AND IN OTHER NEWS…

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Kelly Zong Fuli has been appointed as chairman of Hangzhou Wahaha Group Co., the beverage giant founded by her father.

How Stone Island rebuilt its website from the ground up

The next phase of Stone Island’s new era under CEO Robert Triefus is a new, wholly owned website with a focus on service and storytelling.

It's official — nearly all of us are much more productive when we work from home

Even bosses are coming around to more flexible working

Amazon to Hire Covariant Founders to Expand Warehouse Automation

(Bloomberg) -- Amazon.com Inc. is hiring the founders of robot-software maker Covariant, in a move known as an “acquihire” that is aimed at helping the e-commerce leader boost its warehouse automation.Most Read from BloombergA Guide to Urban Swimming in Europe, Beyond the SeineDense Cities With Low Emissions Suffer Most From Air Pollution, Study FindsIntergenerational Housing Could Help Older Adults Combat LonelinessTurkey Plans Istanbul Taxi Surge to Tackle ComplaintsAmazon said in a blogpost o

Peloton’s Rebranding Falls Short in Changing Consumer Perception, Says CEO

Peloton’s recent efforts to broaden its brand beyond in-home cycling have yet to fully resonate with consumers, Co-CEO Karen Boone said.

| GET LINKED

Armon Shokravi on LinkedIn: I analyzed upsell data from 30,000+ Shopify stores, to find the best post…

I analyzed upsell data from 30,000+ Shopify stores, to find the best post purchase upsell strategy.

And, I’ve tested this strategy on my own store to drive $100,000s in additional revenue...

It's called The Quantity Strategy.

With post-purchase upsells, the name of the game is ‘more of the same’

One of the best performing offers is more of the exact same product that was just purchased (with a bit of a discount)

Why?

You already know the customer wants the product.

If you offer a discount, they’ll buy more for themselves, or to gift to friends.

But why stop there?

Increase the quantity for maximum effect.

Sell 2 as the first post purchase offer.

If they decline, offer 1 additional unit.

If they accept?

Offer a higher quantity of 4-8 units.

The Quantity Strategy can be a game-changer for boosting AOV. What’s your go-to post purchase upsell strategy?

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| STAT ATTACK 👊

| THE OUTRO

Don’t know about you but we definitely feel something big coming toward the end of this year.

Time will tell! ✌️

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