The Importance of Promotional Offers

Let more buyers qualify! Consider testing NO dollar minimum. This will encourage more people to order. From the testing I've done, not having an order minimum (preferred) will increase the response rate and average order size. Customers who often spend more than the order minimum will lower their spending to hit the minimum if there is one.

10 Rules When Using Offers

1. Know why you're making the offer. Use offers strategically.
2. Prepare a pro-forma; do your financial analysis.
3. Test the offer against another offer.
4. Don't overtest offers within a drop.
5. Don't make the offer during peak season (if you don't need to).
6. Don't overuse an offer. Retest against a control or another offer.
7. Know what your competition is doing. You might have to use offers just to stay competitive.
8. Make sure your sample size gives you statistically valid results.
9. Expect some decline in the impact of the offer over the control if the offer is repeated.
10. Analyze the results and act on what you see!

Over 50 percent of all catalogs offer some type of promotion. A large percentage of these offers are free shipping. Promos have become a regular part of doing business and something the consumer expects.