Thursday, September 25, 2014

Online Discounts vs. Free Shipping: A Battle of the Ages

Who doesn’t love a good deal when online shopping? Pretty much everyone. But not all offers are created equal, and in July 2014 polling by Retention Science, percentage discounts led the pack as the most effective customer incentive.

Among US online retailers, 30.9% said a percentage discount was the most effective customer incentive, the No. 1 response. Meanwhile, 21.8% cited shipping incentives—free or discounted—as offers that worked best for their customers. Though percentage discounts were the favorite, amount discounts weren't very popular...

However, a Q2 2014 study by Flagship Research for BlueHornet found age played a big role in whether US internet users preferred a percentage discount vs. free shipping. Consumers ages 18 to 45 favored discounts, while 46- to 75-year-olds preferred free shipping — indeed, shipping costs are a top digital shopping pet peeve for older generations.

See more at eMarketer.

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