How many discount emails and texts do you have in your inbox right now? And how many do you open?
Probably not many, right? Inboxes are flooded with generic offers. It’s easy for those discounts to get lost. But what if they were just for you and showed up at the perfect time? You’d be more likely to open and use them.
That’s because people not only crave personalized experiences but also that they should reach them at the right time.
Personalized discounts can make a huge difference in eCommerce. They help you stand out in a crowded inbox and build lasting loyalty if that reaches the right time (you must be wondering how? That’s where the email and SMS automation tools come into the picture.
In this guide, we’ll show you how to use them to keep your customers coming back. Let’s get started.
Understand the benefits of personalized discounts
Personalized discounts are designed to delight one specific customer. They may be based on their past search history or tailored to their shopping habits, but how do they analyze it manually?
Personalized discounts make your customers feel special. And they come with some great benefits for businesses, including:
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- Loyal, happy customers: Personalized discounts make shoppers feel valued and increase satisfaction.
- Stronger engagement: Tailored offers boost interaction, enhance brand experience, and drive more revenue.
How to use personalized discounts to boost customer loyalty
Now, it’s time to get practical with some tips on how to use personalized discounts.
1. Gather and analyze customer data
To personalize effectively, start by ethically collecting customer data—past purchases, browsing habits, and interests. Trust is key: while 51% of consumers feel confident in how brands handle their data, 49% remain skeptical. Transparency and responsible data use are essential to building loyalty.
Use a mix of tools to gather insights:
– CRM systems
– Loyalty platforms
– Interaction logs
– Automated billing software
This multi-source approach ensures your discounts are not only personalized but also strategically aligned with customer behavior and pricing trends.
Image sourced from segment.com
2. Segment your customer base
Break down your customers into groups. Think of it as akin to sorting your friends into different squads based on their likes and what they do. Some might be into sports, hitting the gym every weekend. Others might be fashionistas who love shoe shopping.
For your business, you can divide them into lots of different categories, such as:
- Their demographics: Age, gender, location, and income level.
- What they like to buy: Their favorite products, brands, or categories.
- When they like to buy: Seasonal preferences (e.g., Black Friday/Cyber Monday), shopping habits, time of day.
Once you’ve got them sorted, you can start creating those special discounts that fit each group perfectly.
Target young urban women (aged 25–30) who love luxury fashion with evening emails.
Example:
“Hey, fashionista! Enjoy 20% off designer brands tonight only—use code FASHION20 at checkout and shine bright!”
3. Develop personalized discount strategies
There are so many ways that you can use discounts to get loads more leads and sales for your online store. The strategy you choose is ultimately going to depend on your company’s goals and also the leads themselves.
Let’s take a look at some of the more popular discount strategies out there:
- Buy One Get One Free (BOGOF): This is a classic. It works great for products that people buy a lot of, and is perfect for getting customers to add more items to their carts. You can also play around with and adapt this a bit. For example, you could offer a “Buy one, get one 50% off” deal.
- First-time customer discount: Looking to convert brand new leads into winning customers? Then this could be the solution for you. It lets you attract first-time buyers by offering them a special price. ClassPass is a great example of this. They offer free credits to first-time users to help them become loyal customers.
- Free shipping: Nobody likes paying a small fortune for shipping, and a lot of customers abandon their carts because of it. By offering free shipping, you can push them to complete the purchase.
- Early bird VIP discounts: This one’s brilliant for making your customers feel special and important. You can reward your most loyal, die-hard fans by giving them early access to sales or special discounts.
4. Implement personalized discounts in your eCommerce platform
Once you’ve analyzed customer habits, grouped them, and crafted discount strategies, it’s time to launch them on your eCommerce site—via widgets or a dedicated rewards page.
Use automation tools like BayRewards, Smile, or LoyaltyLion to deliver discounts based on customer behavior. This ensures timely, targeted offers that boost engagement and drive conversions.
5. Communicate personalized discounts effectively
Sometimes, it’s not what you’re offering but how you’re offering it that makes all the difference. When you’re sending out personalized discount emails, the way you talk about the offer can really impact how engaged your leads will be and your chances of them converting into customers.
Not got the faintest idea of how to do this? Don’t fret. We’ve got some winning tips to help:
- Personalize with names: Use your customer’s name in the email to show the discount is just for them.
- Stick to the 3 Cs: This is a golden rule in copywriting. When writing, you need to be clear (use simple language with no jargon), concise (short and sweet), and compelling (use power words).
- Mention the benefits: Explain why the discount matters to them. Show them how it saves money or fits their needs.
- Create urgency: Nobody likes feeling FOMO (Fear Of Missing Out). Use phrases such as “Limited-time offer” or “Offer ends tonight” to make them act fast or risk missing out on a brilliant deal.
- Time it right: Send emails when your customers are most active. If they’re night owls or love shopping on their morning commute, send emails then. It’ll increase the chance they’ll open and use the discount.
- Manage your stock: Avoid disappointing customers with out-of-stock items. Use inventory management tools to track stock in real-time and update discount messages promptly, ensuring a smooth checkout experience.
6. Measure the impact of personalized discounts
What happens after you send those sweet discounts? Well, that’s what you need to find out. After all, you can’t just throw out deals and hope for the best. You need to know if those discounts are making a difference, right?
Track how many people use those discount codes and coupons you sent them, how much they spend, and if they stick around after the discount period ends. This gives you solid data on whether your discounts are working or if you need to make some tweaks.
Your ecommerce platform should have analytics tools that crunch the numbers for you, giving you insights into what’s working and what’s not. Make sure to compare this data with your regular sales figures to understand the true impact.
7. Continuously optimize your discount strategy
After launching personalized discounts, the next step is ongoing refinement. Don’t fall into a “set it and forget it” mindset—regularly review performance data to uncover trends and opportunities.
If certain offers underperform, adjust them. Try changing the discount amount, timing, messaging, or target audience to improve results.
Use A/B testing to compare variations and identify what resonates most. Continuous optimization ensures your strategy stays effective, boosting engagement, loyalty, and business growth.
Final takeaway
So there you have it—our complete guide on using personalized discounts to boost customer loyalty in e-commerce. We’ve covered everything from understanding your customers’ habits to creating and using discounts effectively. The trick is to make your customers feel special by offering discounts that match their interests.
By using data, talking clearly, and always improving your discount strategy, you can make customers happier, keep them coming back, and help your business grow.
Start small, see what works, and keep tweaking your approach to strengthen your connections with your customers through personalized discounts.
Happy discounting!
