Online retailers often face fierce competition. Even a few sales can make a huge difference, particularly for smaller businesses. You’ve probably considered multiple ways of boosting your revenue, but which would be most effective?
A BOGO marketing strategy is an excellent choice because it has multiple benefits.
What Does BOGO Mean?
BOGO means “buy one, get one.” Customers pay a certain price for the first item but receive the second one free or at a discounted cost. This concept appeals to consumers for many reasons, but it also has several benefits to business owners.
How Can You Use a BOGO Marketing Strategy?
Before you implement this strategy, consider your goals and the best way to reach them.
1. Inventory Turnover
Whether the second item you offer is the same as the first or another selection, a BOGO strategy is a great way to move excess inventory. Customers may purchase items they didn’t know you carried, and your cash flow will thank you.
2. New Customers
The appeal of a BOGO offer is likely to attract new customers. After all, everyone likes getting a good deal. Cost-conscious consumers may patronize your store for the first time because of your well-placed BOGO ads.
3. Data and Testing
A BOGO promotion allows you to gather invaluable data about customer behavior, the viability of new products, and the effectiveness of certain aspects of your marketing strategy. Analyzing this data can help you make informed business decisions in the future.
4. Average Order Value
A BOGO marketing strategy is a great way to increase your average order value. Customers are often willing to spend more than they had initially planned to take advantage of these offers.
5. Up-Selling and Cross-Selling
Your BOGO offer is a great way to expose customers to new selections that complement their original choices or cost slightly more but have a higher perceived value.
6. Cash Flow
Slower sales periods mean you have the inventory you’ve paid for and ready to ship, but not much is moving from your stock. Meanwhile, you still have bills to pay. A BOGO strategy can bring in much-needed cash flow to cover ongoing expenses and free up capital for new stock.
7. Brand Awareness
BOGO pricing can imply a sense of urgency, prompting consumers to buy new kinds of products from your brand. These customers are likely to continue patronizing your shop if they are satisfied with their purchases.
How Does Consumer Psychology React to a BOGO Marketing Strategy?
It might surprise you to learn that reducing prices by 50% is usually less effective at increasing sales than a BOGO offer. To create a successful promotion, you need to understand the psychological effects and why they draw consumers to BOGO pricing.
Not many people can resist getting something for free, even if they must spend more than they were planning to spend to get that free item. The idea of a free item triggers an emotional response of gratitude and makes people feel recognized.
Some sales strategies, including BOGO offers, create an implied obligation. If you offer a BOGO deal, consumers will likely “pay you back” for your generosity by purchasing more now or in future transactions.
Bargain hunters love finding great deals; in fact, they often tell their friends about what they found and where they got it. A carefully thought-out offer will add to your customers’ sense of accomplishment and your sales figures at the same time.
Perceived value is a key factor in the success of BOGO deals. People typically see free items as having an increased value, yet they usually don’t have any expectations about that item. Consumers may think, “It was free, so I don’t have to worry about being dissatisfied or if I’m getting a good value for my money.” When the products are pleasing, your customer is likely to feel rewarded.
How Can You Increase the Effectiveness of Your BOGO Pricing Strategy?
Although you have your own motives for implementing your BOGO marketing strategy, your customers need to think you created it to benefit them. The way you present your offer should reflect that truth.
Consumers are increasingly skeptical about free offers. They may wonder if there’s something wrong with the free item, so it’s important to portray your offer as appealing and something of value.
Influencer marketing is very successful because consumers feel they are keeping up with new trends, often racing to beat their friends to buy the recommended items. With that concept in mind, think about how to appeal to your target market.
You can use a multi-platform advertising approach, adapting your content accordingly. Integrating apps that are specifically designed to engage customers and encourage more spending — whether by introducing a BOGO offer or other incentives — into your online store’s site can substantially increase your strategy’s success. When you choose Tabarnapp’s solutions, you can choose a pricing plan to accommodate your budget.
What Kind of BOGO Offer Is Best?
You need to select the BOGO offer that you will use carefully. Giving away too much usually isn’t cost-effective and may negatively impact your bottom line. Some commonly used BOGO offers include:
- Giving consumers an identical item for free
- Offering a second item at a discounted price
- Letting consumers purchase value-added bundles when they subscribe to your service
It’s often advisable to select items geared toward a larger audience. For instance, using a BOGO marketing strategy to promote candy sales will probably be more effective than offering blue pillow shams. Candy will appeal to far more customers than a specific color of a certain item that not many people would use.
How Can Tabarnapp Help Make Your BOGO Marketing Strategy More Successful?
Our robust ADG, Ultimate Upsell, and Carter apps are easy to integrate into your Shopify store. These apps reach your customers while they are actively considering buying your products, which is usually more effective. Choose where and how to display your offers easily, and our automated solutions will take care of the rest.
Customizing your BOGO marketing strategy does not require coding. View our demo store or contact Tabarnapp today to learn more about how we can help you boost your sales.
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