A recent national study conducted by 2 Visions on more than 2,200 American ecommerce shoppers reveals that 62% of apparel shoppers in the United States wait for discounts before making a purchase. The research, conducted in April 2023, also found that shoppers are approximately 2x more likely to buy a product with a 20% discount over a non-discounted, average-priced alternative and 2.8x more likely to buy on a 20% discount when the product’s original price was perceived as above average.
View the full Q2 2023 Ecommerce Discounting & Promotions Report.
Researchers discovered that when offered a 50% discount, shoppers were 99% more likely to make a purchase compared to a product with a 20% discount. The study also uncovered generational differences in trust for coupon codes, with Gen Z trusting them the most, followed closely by Millennials. Gen X and Baby Boomers trust coupon codes the least, with Baby Boomers expressing the least trust overall for coupon codes.
Researchers also explored a range of topics in the report, including:
- Brand Loyalty vs. Novelty: The report uncovers the role of brand loyalty and preference for novelty in shopping behavior, presenting a significant opportunity for ecommerce leaders to tailor their strategies according to consumer preferences.
- Generational Attitudes Towards Deals and Discounts: The report provides insights into how different generations, from Gen Z to Baby Boomers, perceive and respond to coupon codes and discount deals, enabling ecommerce leaders to target their promotions more effectively.
- Email and Text Subscription Deals: A look at how different generations value deals obtained through subscribing to brands’ emails or texts, and how ecommerce businesses can leverage this to their advantage.
- The Power of Discounts: The report reveals how various levels of discounts can significantly influence purchasing decisions and attract more customers.
- Influence of Product Attributes: The report investigates how different product attributes, such as scarcity, uniqueness, and price, influence purchasing decisions, offering ecommerce leaders ways to optimize their product presentations.
- Selling Out and Scarcity: An examination of the power of scarcity as a sales tactic, particularly when combined with discount offers, and how ecommerce businesses can use this to boost sales.
- Generational Preferences for Product Attributes: The report dives into how different generations prioritize product attributes, such as scarcity, uniqueness, price, and promotions, providing insights for more targeted and effective ecommerce strategies.
Yates Jarvis, Principal at 2 Visions, emphasized the importance of deeper research-driven insights for modern-day personalization, AI, and customer-centric marketing strategies: “We’re finding that ecommerce targeting has really ramped up on the back of behavior-based experiences, but we’re seeing significantly stronger performance when brands introduce and star preference-based experiences,” Jarvis said. “This Q2 2023 report highlights promotional and discounting distinctions in ecommerce purchase behavior that shift from target audience to target audience. You can imagine how powerful this is when applied to a brand’s personalization strategy.”
The report is specifically designed to aid senior ecommerce leaders in their strategic planning. The findings presented offer a snapshot into consumer preferences, enabling ecommerce decision-makers to sharpen their discounting and promotional strategies for 2023.
Tune in to MTC Podcast for visionary Martech Trends.