In recent years, buyers have been offered daily deals, flash sales campaigns, and one-day discounts. This has caused a significant shift in how customers respond to offers. A growing number of buyers admit to making final purchases if the products are on sale. These “bargains” are more popular because people believe they will be around for the holidays. Online businesses are now looking to increase sales by taking advantage of this type of offer.
Because business owners are able to gauge the market, they don’t have to satisfy all customers. They can offer discounts for the entire shopping season. Marginal profit is still the most important priority. Recent market trends have highlighted the importance of offers in deciding shoppers’ purchase decisions. This problem was solved perfectly by the term “limited-time deal”.
The Idea of a Limited-Time Offer
A limited-time offer can be any type of deal, discount or promotion that a customer receives if they purchase within a specified time period. Researchers have found that limited-time deals are based on the psychological phenomenon of “fear” (FOMO). This refers to the fear one might feel if they don’t get to experience the exciting occurrence elsewhere.
FOMO can be a powerful motivator of purchase behavior when your customers truly believe the offer is temporary. NRF Data found that nine out of ten customers were persuaded by additional value to make a purchase that wasn’t intended. When they knew that the deal would not be available in the near future, people rushed to take immediate action.
A Variety of Limited-Time Offers
You should offer offers in many different formats. Flexibility in offering ideas is a key feature that determines the success or failure of a promotional campaign. Promotions have seen a rise in the number of promotional forms over recent years. These are the most effective forms of promotions and have the highest effectiveness rates.
Flash sales are the most popular and fundamental marketing strategy for the holiday shopping season. This refers to a price drop within a specified time period.
A decrease in price usually results in lower profits and tighter margins. This can reduce brand revenues and devalue brands in the market. But, loss of profit and margins is implicitly a result of the promotional expenditures that retailers must spend to increase business volumes. Retailers are willing to spend a portion of their revenue to attract more customers. This will lead to higher revenues.
Customers have always found discounts attractive, but setting a deadline to receive a discount encourages customers to act quickly. This motivates even the most hesitant customers to purchase. Flash sales can entice emotions and drive impulse purchases. Many customers don’t have a model price to compare pricing rationality so they end up buying limited-time discounts.
Economic principles state that scarcity can lead to an increase in demand or an increase in value. This idea is fundamental to the setting of a time limit for a product. A limited-time product refers to an item that is only available in a particular market for a certain time. You can either create a new product or use an existing product. This amazing Dunkin’ Donuts flash-deal is a great example of this.
Dunkin Donuts is a brand that never fails to amaze and inspire curiosity with seasonal food, beverages and beverages. The brand’s remarkable comeback this summer is highlighted by the new Cosmic grape COOLATTA, new Banana Split Flavored coffee, and Shooting Star Donut.
Customers were attracted to these releases by their stunning galactic colors and guaranteed flavor explosions with every bite. This campaign could encourage returning customers to purchase more and make them more attractive to new customers.
Limited-time products can attract both former and new customers and encourage them to come into the stores. This creates the foundation for future premier releases. Brands with limited edition trademarks will create a unique identity that differentiates them from other competitors in the market. These productions will make customers feel unique and special, which will help ensure that the brand is well-positioned in the long-term.
A Limited-Time Offer that is Effective
Customers will only remember an offer if they are aware of its urgency and limitations. To determine which aspects of an offer should be highlighted, marketers should have a good understanding of common psychological logic. These are just a few suggestions and tips that you can use to get started.
Learn How Customers Would Like To Be Notified
You should not limit limited-time offers to a section or pop-up on landing pages. This only works if customers have the time to browse your websites. Email notifications were preferred by more than half of shoppers. To encourage purchases, store owners can use this opportunity to attach an offer to a transactional mail.
Highlight to Attract
Engaging offers should grab attention from the first glance and be read. These are some options that you should consider when creating a limited-time deal:
- The deadline is important: A finite-timing offer’s deadline is what determines urgency marketing and directly influences customers’ purchasing decisions. Bright colors, bold text and other special effects can draw attention to it.
- Use “time limit emphasis” language: Statements like “Hurry up”, “Today is your last opportunity”, “Don’t wait to purchase” or “Expires Tonight” convey urgency and can cause “butterflies” in the stomach if you don’t get the deal.
- Command language is your best friend: Use phrases like “order now”, buy now, “take the chance”, and “call today” to urge customers to act.
- To remind customers of your offers, attach a countdown clock to the top page.
A banner that announces the daily deal on Loft Outlet’s homepage.
These attractive indicators are placed in your store to increase urgency and build customers’ desire, which will push them to make a faster decision.
For example, a promotion that ends at 11 p.m. should be ended at exactly 11 p.m. Customers should not be offered the same “limited-time offer” after it has ended. In this instance, the business owner will lose customers’ trust and customers will stop responding to your products.
Some Successful Case Studies
Today’s marketer has been increasing their creativity by offering sales promotions to increase store visitors’ interest and buy more. These are just a few of the outstanding examples you can learn from.
RIPT Apparel’s Daily Deals
RIPT Clothing sells hoodies and T-shirts with limited edition artwork. On the main page of their website, there is a section called “Daily Deals”. Three new designs are offered for every product at a $13 per day discount. They reset the countdown clock at Midnight CST each day and live-count how many hours they have left. This time, the urgency is created by the attachment and the fact that these designs were submitted by freelance artists. Customers won’t miss the chance to purchase a product by their favorite artists at a very attractive price.
The brand’s success in attracting customers back to its store each day by offering new products and holding sales has been a testament to their ability to provide fresh content that provides them with the best shopping experience. This is why RIPT Apparel, which was established in 2009, has successfully used this strategy for a decade.
Victoria’s Secret’s “Today Offers”
Victoria’s Secret is a familiar name to many people. The most striking thing about Victoria’s Secret’s website is the blinking “Today’s offers” button at the bottom. You will find a variety of daily deals, including limited editions, discounts, and sale-offs for your first purchase. There are also alterations every day. These amazing deals not only draw customers to your site but also provide convenience by allowing you to access all promotions at once.
LOFT’s Mystery Flash Sale
LOFT’s Flash Sale feels like going back to childhood, when you play the spinning machine game and are curious as to what prize they will receive. The mystery element of LOFT’s offer works in the same manner as the old game. Clicking the “Reveal your Deal” button will reveal which discount option customers will be eligible for. This innovative method is efficient as customers will want to visit the website once they have the discount they won.
The limited-time offer has played a key role in driving consumers’ interest and increasing conversion rates for retailers. To attract more customers to purchase and make shopping enjoyable, businesses should constantly update and diversify their offerings.