👚 How to discount for your #fashion brand to maximize profits and minimize risks Most brands I work with initially offer sitewide discounts when it comes to sales. But what if there was a better method that allowed you to: - Maximize profit by offering tiered discounts based on purchasing signals; - Clear unsold stock to raise capital; - Avoid offering discounts to those who would have bought anyway, thus preserving profit. Enter RFM Segmentation, a powerful method that helps you tailor discount strategies by analyzing three key customer behaviors: - Recency (R): How recently a customer made a purchase. Recent buyers are more likely to respond to promotions. - Frequency (F): How often a customer makes a purchase. Frequent buyers are more engaged and loyal. - Monetary (M): How much a customer spends. High spenders are valuable and may need special attention. Here's a common scenario that backfires: offering a 30% discount to a top customer who already spends a lot and frequently. This customer doesn't need a big discount to buy again, so you just lost 30% in profit. By scoring customers on these three dimensions, you can segment them into specific groups and target each with the right discount offers. Here’s how it works: - Top Performers: High Recency, High Frequency, High Monetary. Offer exclusive perks or early access to new collections to maintain loyalty without cutting margins. - Loyal Customers: High Frequency, Moderate Recency, Moderate Monetary. Use moderate discounts or loyalty rewards to keep them engaged. - Big Spenders: High Monetary, Moderate Frequency, Moderate Recency. Offer special incentives or personalized experiences rather than large discounts. - Promising Customers: Moderate Recency, Moderate Frequency, High Monetary. Use small, targeted promotions to encourage more frequent purchases. - At-Risk Customers: Low Recency, High Frequency, High Monetary. Use compelling, well-timed offers to re-engage them. - Need Attention: Low Recency, Low Frequency, Low Monetary. Use deeper discounts strategically to try to convert them into regular buyers. ___ In the coming days, I’ll write an article on how to implement this, with real-life examples using Klaviyo and Shopify for a fashion brand I’m working on at Grapefox. Don’t forget to hit the follow button so you won’t miss it.
Luca Fontani’s Post
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Have you ever wondered how #personalizedshopping can truly transform your business? We have! With the summer holiday season in full swing this August, now is the perfect time to plan enhancing your customers' shopping experience with personalized interactions. Thanks to QLODE, fashion stores have seen a 20% increase in conversion rates! The secret? Tailored outfit recommendations that align with our customers' styles, occasions, and budgets. It's all about forging deeper connections and truly understanding what each shopper desires. When customers feel understood, they keep coming back and don't return the clothes they bought If you’re ready to elevate your e-commerce experience, personalization is the key. Let’s chat about how we can bring this to your store! https://lnkd.in/dzZxXtHt #Ecommerce #FashionRetail #Personalization #CustomerExperience #SalesGrowth #FashionTech
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E-commerce Visual Strategist | Currently based in Athens, Greece and Amsterdam, NL. Work area (remotely) Europe
With better product images, you can reduce returns by up to 30%. It saves you loads of money and minimizes the environmental impact 🌎. Did you know that for example in the Netherlands, around 20% of online purchases are returned? In the fashion industry, it's even higher at 30%. This is not beneficial for the company, the inventory, the environment, or your customer's mood (and loyalty). According to a study by Klarna, the reasons for returns in fashion purchases vary by product category. The main reasons for returns are incorrect fit (27%), damaged products (26%), intentionally ordering extra sizes (24%), and a different appearance in reality (19%). Except for the 'damaged products' category, you can significantly impact the other categories with product photos and videos. Need inspiration to start lowering your returns? Then download the Master Your Returns checklist with 45+ solutions to inform better with e-commerce product images. https://lnkd.in/dcyEvMry
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Z, in the last of our A-Z of ecommerce series, stands for ZigZag Global – a global returns solution provider that makes returns smarter for retailers, customers, and the planet. According to Shopify’s 2023 trend report customers who shop online return 20-30 per cent of purchases compared to 8-10 per cent of in-store purchases. Worse still, the average return rate for luxury items is 50 per cent. High return rates can pillage profit margins, cripple conversion rates and ultimately destroy a business. But it’s not all doom and gloom – by looking at the problems causing high return rates and seeking to solve them, we can reduce and even maximise on returns. In this article we explore why ecommerce return rates are so high and give advice on how to reduce their impact on your business. Visit the link in comments. 👇 #shopify #shopifyplus #ecommerce #retail #fashion #homeware #cosmetics #jewellery
By Association Only | Reducing returns: By Association Only’s top tips on how to improve your returns process
byassociationonly.com
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When everything is about the colour of your products, it pays to make sure those shades are spot on 🌈 Inconsistent colour reproduction can have a huge impact on the amount of returns your e-commerce business receives, and in turn, a detrimental effect on your bottom line. Our blog details how to ensure the colours of your products are accurately represented, and across all your marketing channels 👇 #colourreproduction #ecommerce #retail #fashionbrands #fashionindustry #omnichannelmarketing
When colour is a key driver of sales for your e-comm retail business
ec2i.biz
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Is your e-commerce brand struggling to turn one-time buyers into loyal customers? Discover how a simple loyalty program transformed Emily's fashion business and skyrocketed her brand's growth As e-commerce brands strive to stand out in a competitive market, customer loyalty programs have become a popular strategy. But are they worth the investment? For many brands, the answer is a resounding yes. Take Emily, a fashion entrepreneur who sells premium clothing. She implemented a loyalty program that rewards customers with points for every purchase, which can be redeemed for exclusive discounts or new apparel. Emily wanted to ensure that their customers would return after their first purchase. They introduced a loyalty program that rewarded points for every purchase, which customers could later redeem for discounts or exclusive apparel. This incentive not only increased the frequency of purchases but also drove higher average order values, as customers were eager to accumulate points for future rewards. Emily knew that brand loyalty was key to their long-term success. By enrolling customers in their loyalty program, they created a sense of belonging. For example, customers received personalized offers and early access to new collections, making them feel like VIPs. This personal connection transformed occasional buyers into dedicated brand advocates who were excited to share their positive experiences with friends and family. Through their loyalty program, Emily gained valuable insights into customer preferences and behaviors. They noticed that customers who frequently purchased their signature jeans also showed interest in their new line of jackets. This data helped Emily tailor their marketing campaigns, offering exclusive deals on complementary products, which further drove sales and customer satisfaction. Consider Sarah, Emily's customer. Sarah initially purchased a pair of jeans, attracted by the quality and fit. After joining the loyalty program, she started receiving points with each purchase. Over time, Sarah redeemed her points for a stylish jacket, and later, a matching scarf. Each purchase deepened her connection with the brand, and the personalized rewards made her feel valued. This led to Sarah recommending Emily to her friends, expanding the brand’s reach and increasing sales. Investing in a customer loyalty program can be a game-changer for your e-commerce brand. For Emily, it wasn’t just about increasing sales; it was about building lasting relationships with customers like Sarah. And as any successful brand knows, loyal customers are the foundation of long-term growth. How has a loyalty program impacted your brand’s growth? Share your experiences in the comments below!
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I can't believe this!! Every fashion brand in eCommerce is trying to reduce returns 🔥👀 35% of orders can end up getting returned at the merchants expense 🤢 What can you do? Order Editing gives customers 15 minutes of grace to make changes or cancel their order after Checkout. We're seeing major reductions in retun rates when you empower your customers. Is this going to be the new normal for Shopify brands? In 12-months, will everyone will offer this? Imagine if we can reduce return rates globally even by just 1 or 2 percent!!! #Shopify #eCommerce
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How important is offering your customers what they actually want to buy? At SuperOrder, we think its THE most important thing you can do! Personalised offers allow you to actually convert without needing to give discounts that eat into your profitability. Making upsells shouldn't cost your margins. We are always looking to help Shopify brands drive more revenue ;) If you are a #fashion brand hmu Or book in a demo here: https://lnkd.in/gphZWVFS (and get SuperOrder FREE for 30 days) Your brand is only 15mins away from making more revenue out of your current customers!!
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Strategy Director at Heur - Hands on ecommerce consultant - Specialising in fashion, footwear and apparel
Something most fashion ecommerce marketers don't want to admit... Once you've done the basics, it's hard for promotional tactics on their own to generate meaningful uplifts in repeat purchase rates. Why? Because more email flows and arbitrary point rewards don't really do much to change a buyer's natural shopping behaviour. Most people who shop at independent fashion brands will do so a handful of times per year. And they'll be buying from multiple brands alongside yours. If you want to really make a shift in behaviour, you need to lean more into product range development and your approach to pricing. In a nutshell, create products that make sense to purchase frequently at a price that makes sense. As someone who 'just handles' the website, your ability to control those two things is probably limited. In that case, your job becomes gathering as much information about your customer's buying behaviour as possible. Keep piling your findings onto senior stakeholders until you become impossible to ignore. If you're working for a good brand, eventually people will start to listen. It's mostly thankless work, but then so is spending months developing a loyalty program that adds no incremental value.
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Want a sneak peek at our 2024 Best in Class Report? 👀 Find out which 12 conversion optimization features are trending upward, which have cemented their legacy as best practices, and which are falling out of fashion with today's top #eCommerce websites in this preview from our CRO team. Check it out (and download your full copy of our report for free) today: #onlinebusiness #conversionoptimization
12 Key eCommerce Trends from Inflow's 2024 Best in Class CRO Report
goinflow.com
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🎉 Fun Fact: Did you know that True Fit integrates seamlessly with Shopify? This powerful partnership allows Shopify retailers to deliver personalized fit recommendations directly on their #eCommerce sites, helping customers find the perfect size and style with confidence. 🔥👗 By combining True Fit’s data insights with Shopify’s leading eCommerce platform, brands can boost customer satisfaction and increase conversions, all while reducing friction in the online shopping experience. 🚀 #TrueFit #Shopify #eCommerce #Personalization #RetailTech #FitForYou https://lnkd.in/dvQxzuyx
True Fit: AI Size Guidance - True Fit: AI Size Guidance | Shopify App Store
apps.shopify.com
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Marketing Consultant | Co-Active Coach
5moLove this, it also addresses the need to maintain a high brand value across customer segments when running promotions/discounts