Discounts are super important for upping your sales game in the Philippines. Everyone loves a good deal, and online shoppers are no different. When you strategically use discounts in your online store’s cart, you can convince hesitant buyers, clear out old stock, and even attract new customers. Let’s dive into how you can make discounts work wonders for your Filipino e-commerce business.
Understanding the Filipino Online Shopper
Before we get into specific discount strategies, let’s take a quick look at the Filipino online shopper. Generally, Filipinos are price-sensitive. This doesn’t mean they’ll always go for the cheapest option, but they definitely appreciate a good value for their money. Social media heavily influences their buying decisions, and recommendations from friends, family, or influencers carry a lot of weight. Mobile shopping is also huge since many Filipinos access the internet primarily through their smartphones. According to a report, the Philippines has one of the highest social media penetration rates in Southeast Asia; this suggests that word-of-mouth and viral marketing play a significant role in purchasing decisions. Keep these factors in mind when designing your discount campaigns.
Why Discounts in the Cart Matter
Think of the cart as the very last chance to win over a customer. They’ve already looked at your products, considered the prices, and decided to add something to their cart. But sometimes, they still hesitate. Common reasons for cart abandonment include unexpected shipping costs, complicated checkout processes, and finding the same product cheaper somewhere else. Discounts offered right in the cart can address these concerns head-on. A well-placed discount can be the deciding factor that pushes a hesitant customer to ‘Checkout’ and complete their purchase.
Types of Discounts You Can Use in the Cart
Let’s explore different kinds of discounts you can implement in your cart:
Percentage Discounts
This is the simplest and most common type, offering a certain percentage off the total order. For example, “Get 10% off your entire purchase!” Percentage discounts are easy to understand and visually appealing. When running a percentage discount, it is very vital to showcase before and after price to better capture your customer’s attention. For low-priced items, small percentages may not seem attractive. In that case, consider offering a fixed amount discount instead.
Fixed Amount Discounts
Instead of a percentage, you offer a set amount off the total. “Save ₱100 on orders over ₱1000!” Fixed amount discounts work well for specific product categories or when you want to emphasize the savings value directly. For example, if you sell ube flavored delicacies, you could give fixed discounts exclusive on this specific product. Also, if the products that you’re selling are expensive, the fixed discount value should align with the higher price.
Free Shipping
Shipping costs are a major pain point for online shoppers in the Philippines. Offering free shipping, especially above a certain order value, can be a huge incentive. “Get free shipping on orders over ₱1500!” This addresses one of the main reasons for cart abandonment and can significantly boost conversion rates. Consider the fact that Filipino consumers are spread out across thousands of Islands, so shipping cost is a serious consideration.
Buy One, Get One (BOGO)
This is a classic strategy that encourages customers to buy more. “Buy one shirt, get one 50% off!” BOGO deals are great for clearing out inventory or promoting related products. Variations include “Buy one, get one free” or “Buy two, get the third at half price.” It is also important that if you’re going to offer BOGO deal, the price should be adjusted so that profit is still earned. This is popular because the appeal is the fact that your customer will get a great discount.
Gift with Purchase
Giving away a small, related item with a purchase can increase the perceived value of the order. “Get a free keychain with every order!” The perceived value will always be high, so people will more likely be convinced that the product they’re getting will be a great deal. This is also a good strategy for products that are not doing so well: bundle this product with more popular item and offer it as a gift. This makes the customer happy and frees up your inventory.
Follow us on LinkedIn!
Limited-Time Offers
Creating a sense of urgency can motivate customers to buy now rather than later. “24-hour flash sale: 20% off all items!” Or “Order within the next hour and get a free upgrade!” Limited-time offers create FOMO (Fear Of Missing Out) and encourage immediate action. It’s important to be ready when running flash sales because it can bring a lot of traffic. You shouldn’t have any website hiccups during the period of sale, especially during checkout.
Quantity Discounts
These discounts reward customers for buying in bulk. “Buy 3 or more and get 15% off!” Quantity discounts are ideal for items that customers are likely to need more than one of. Make sure that the items you’re offering quantity discounts on are actually needed by the customer in bundles. One example can be pasalubong items because these are things people like to bring home for their families.
Loyalty Rewards
Reward your repeat customers with exclusive discounts. “As a valued customer, enjoy 5% off your next order!” This builds customer loyalty and encourages them to keep coming back. You may also offer freebies to customers who have been shopping with you for a long time. Loyal customers are valuable because most likely, they will recommend your products to their acquaintances via word-of-mouth.
Exit-Intent Pop-ups
If a customer is about to leave your website without completing their purchase, an exit-intent pop-up can offer a last-minute discount. “Wait! Don’t leave yet! Get 10% off your order!” This is a good way to recapture potentially lost sales; it is important that it appears only when they are about to leave the page.
Implementing Discounts in the Cart: Practical Tips
Now let’s get into the nitty-gritty of how to actually add these discounts to your cart:
Clearly Display the Discount
Make sure the discount is clearly visible to the customer in the cart. Don’t hide it! Show the original price, the discount amount, and the final price. Use visual cues like bold text or a different color to highlight the discount. It is also better to show how much the customer will save with the discount offered. For example, if the product’s current price is ₱1000 and you’re offering 10% discount, show the price reduction of ₱100 to highlight the amount they’ll save.
Make it Easy to Apply
If the discount requires a coupon code, make it easy for customers to enter it. Provide a clear input field in the cart page. If possible, allow customers to apply the code with a single click. For example, if the customer is a subscriber to your website, it will be seamless if the discount is automatically applied once they reach the checkout page.
Personalize Your Discounts
Follow us on LinkedIn!
Use customer data to offer personalized discounts. For example, if a customer has viewed a particular product multiple times but hasn’t added it to their cart, you could offer them a discount on that specific item. Some e-commerce platforms have advanced integrations that allow this. You may also collect data on what products your customer usually buys and offer them related products with discounts.
Use High-Quality Product Photos and Descriptions
Even with a killer discount, wag sayangin ang effort. If your product photos are blurry or the descriptions are poorly written, customers might still hesitate. Make sure your product listings are top-notch. Clear, high-resolution pictures are a must. Filipinos like to see all angles of the product, so upload different photos from different positions. Even with good discounts, people won’t buy if your product looks questionable.
Mobile Optimization is Key
Since many Filipinos shop on their phones, ensure your cart and checkout process are fully optimized for mobile devices. A clunky, slow mobile experience will kill your sales faster than anything else. Remember that mobile users may use slow data connections, so the website must be lightweight in size to load quickly.
Offer Multiple Payment Options
Filipino shoppers have diverse payment preferences. Some prefer credit cards, while others prefer cash on delivery (COD) or e-wallets like GCash and PayMaya. Providing various payment options makes it easier for customers to complete their purchase; make sure to include the popular Gcash and Paymaya to increase the potential conversion of sales.
Address Security Concerns
Filipino shoppers are increasingly aware of online security. Display security badges and use SSL encryption to reassure customers that their payment information is safe. People are now smarter and can tell when a website is not secure because they’ll see warnings on the browser. If your site is not secure, people will most likely leave immediately. The easiest way to secure online payments is via established payment merchants than creating your own payment gateway.
Discount Strategies for Specific Scenarios
Let’s look at some specific situations and how you can tailor your discount strategy:
New Customer Acquisition
Offer a special discount for first-time buyers. This could be a percentage discount, free shipping, or a gift with purchase. “Welcome! Get 15% off your first order!” This encourages new customers to try your products and become loyal shoppers. One very important detail is collecting the information on the sign up page: birthday is a good data point to collect so you can offer a birthday discount.
Cart Abandonment Recovery
Send automated emails to customers who have abandoned their carts, offering them a discount to incentivize them to complete their purchase. “Did you forget something? Get 10% off the items in your cart!” These emails should be sent within 24 hours of the cart abandonment. Customers may have had urgent matters that prevented them from finishing the purchase, so reminding them can win back almost lost sales.
Clearing Out Old Inventory
Use discounts to clear out old or slow-moving products. “Clearance sale: 50% off all items in this collection!” This frees up space for new items and generates revenue from products that might otherwise sit on the shelves. Bundling slow moving items with your best-selling items can also entice your customers to buy.
Boosting Sales During Slow Periods
Run special promotions during traditionally slow sales periods. This could be a weekend flash sale or a mid-week discount. Promoting these in social media will bring potential sales with your existing customers. People will more likely buy during times when they are free from work or when they have received their salary.
Seasonal Promotions
Take advantage of holidays and special occasions to offer themed discounts. “Christmas sale: 20% off all gifts!” Or “Back-to-school promo: Buy one get one free on school supplies!” Aligning your discounts with seasonal events can boost sales significantly. Make sure to take note when the holidays are, as this can be a factor in how you will adjust your discount or promotions.
Tools and Platforms for Implementing Discounts
Many e-commerce platforms offer built-in features for creating and managing discounts. Here are some popular options:
Shopify
Shopify has extensive discount features, allowing you to create percentage discounts, fixed amount discounts, free shipping offers, and more. You can also use Shopify apps to create more advanced discount promotions. Shopify is very popular because you can easily create an online store, and there are people who can assist you in developing the site if you need help.
WooCommerce
WooCommerce, a popular WordPress plugin, also offers a range of discount options. You can create coupons with various restrictions and use plugins to implement more complex discount strategies. Many people choose WordPress as their platform because it requires less technical skills to create one.
Lazada and Shopee
If you’re selling on Lazada or Shopee, you can use their built-in promotion tools to create discounts, vouchers, and free shipping offers. These platforms also offer analytics to track the performance of your promotions. These platforms have the most amount of customer traffic, so you’re sure to get potential buyers for your products.
Social Media Platforms
Social media platforms like Facebook and Instagram allow you to offer discounts through ads and organic posts. You can create targeted ads to reach specific customer segments and promote special deals; also, you can use influencers and affiliates to promote your product and generate revenue from sales.
Measuring the Success of Your Discount Campaigns
It’s crucial to track the performance of your discount campaigns to see what’s working and what’s not. Here are some key metrics to monitor:
Conversion Rate
This is the percentage of website visitors who make a purchase. A successful discount campaign should increase your conversion rate. The number of actual buyers from visitors to your site tells a lot about how good the deals you’re offering are.
Average Order Value
This is the average amount that customers spend per order. Some discounts, like free shipping over a certain amount, can increase your average order value. You may also introduce quantity discounts or bundling of products to encourage customers to buy more items.
Cart Abandonment Rate
This is the percentage of customers who add items to their cart but don’t complete the purchase. A well-placed cart discount can decrease your cart abandonment rate because it makes the customer think they are getting a good deal. Make sure that you’re providing discounts for items that your customers are most likely to buy together.
Return on Investment (ROI)
Calculate the ROI of your discount campaigns to see how much profit you’re generating from each promotion. ROI can be computed by subtracting the expenses you spent on your campaign from the revenue generated, and then dividing the total by the expenses. This tells you how much profit you’re getting from your promotional activities.
Common Mistakes to Avoid
Here are some common mistakes that Filipino e-commerce businesses make when using discounts:
Offering Discounts Too Often
If you’re constantly offering discounts, customers may start to expect them and become less willing to pay full price. This devalues your products and can hurt your brand in the long run. Only offer discounts on special occasions or when a certain amount of the original price is slashed.
Making Discounts Too Complicated
Complicated discount rules can confuse customers and lead to frustration. Keep your discounts simple and easy to understand. For example, “Buy 2 get one free” is easier to understand than “Buy 3 but pay the average of the items, with an extra discount on the third item.”
Not Targeting Your Discounts
Offering the same discount to everyone may not be the most effective strategy. Segment your audience and tailor your discounts to specific customer groups. Offering discounts based on location is also great, such as giving discounts to specific provinces where your products are not doing too well.
Ignoring Shipping Costs
As mentioned earlier, shipping costs are a major concern for Filipino online shoppers. Make sure your discount strategy takes shipping costs into account. Offering free shipping can be a much more effective incentive than a small percentage discount. Even when you’re not offering discounts, it is ideal that you have transparency with shipping costs.
Real-World Examples in the Philippines
Let’s look at some examples of how Filipino e-commerce businesses are using discounts effectively:
Fashion Retailers
Many online fashion retailers in the Philippines offer seasonal sales, like “End of Season Sale” or “Mid-Year Clearance Sale,” with discounts of up to 70% off. They also use free shipping promos to attract customers. Fashion is one of the most popular products in the Philippine e-commerce scene, so there is no shortage of options for the customer.
Electronics Stores
Online electronics stores often offer discounts on specific products or bundles, like “Laptop and Printer Bundle” or “Smartphone and Accessories Discount.” They also use limited-time flash sales to generate excitement. Electronics stores always have the latest and greatest tech products, so discounts can really boost their sales performance.
Food Delivery Services
Food delivery services offer discounts on specific restaurants or menu items, especially during off-peak hours. They also use promo codes to attract new customers. For food delivery services, there is no shortage of options, so customers may choose other options if there are no discounts involved.
Key Takeaways
To make discounts work for your Filipino e-commerce business, remember these key points:
- Understand your audience: Know what motivates Filipino online shoppers.
- Keep it simple: Make your discounts easy to understand and apply.
- Personalize: Tailor your discounts to specific customer groups.
- Address shipping costs: Offer free shipping or discounted shipping rates.
- Track your results: Measure the performance of your discount campaigns and adjust your strategy accordingly.
By understanding how discounts work, implementing effective tactics, and avoiding pitfalls, you’ll be seeing growth in no time.
FAQ
Here are some frequently asked questions about using discounts in e-commerce:
Why are discounts important in e-commerce?
Discounts attract customers, increase sales, clear inventory, and build customer loyalty. They can also help you stand out from the competition. Discounts are also a good way of introducing your brand in the e-commerce marketplace.
How often should I offer discounts?
Avoid offering discounts too frequently, as this can devalue your products. Try to stick with seasonal sales, special promotions, or limited-time offers. Flash sales are okay, but these should be occasional.
What is the best type of discount to offer?
The best type of discount depends on your products, your audience, and your goals. Percentage discounts, fixed amount discounts, and free shipping are all effective options. You should also tailor it to specific products that your customers are usually buying.
How can I prevent discount abuse?
Set rules and restrictions for your discounts, such as minimum order values, expiry dates, or limitations on the number of times a discount can be used. It is also important to have proper security in your system to guard against abuse.
Should I advertise my discounts on social media?
Yes! Social media is a great way to reach potential customers and promote your discounts. Use eye-catching visuals and compelling copy in your social media ads and posts. This will depend on how you have defined your customer, so you can tailor ads to more closely match their interests.
What if my competitors are offering better discounts?
Instead of just matching their prices, focus on other factors like product quality, customer service, and brand reputation. Highlight what makes your business unique and offer additional value to your customers. Price is not everything, because value is what the customer is really paying for, especially when they trust your brand.
How can I track the performance of discount codes?
Use an e-commerce platform that has the tools to measure the ROI of each of your discount campaigns. This can range from setting up internal tracking or relying on the analytics provided by e-commerce platforms like Shopee and Lazada.
Should I give discounts if I just launched my e-commerce website?
When you just launch your e-commerce website, introducing discounts makes the customer think that you value their business, and they are getting a good deal from you. Discounts for first-time buyers can greatly increase the number of initial customers.
How many promos should I have running at the same time?
Too many discounts can cause your customer to experience “choice paralysis.” This occurs when they are unsure on what to pick, and they end up not buying anything at all. To avoid this, provide clear categories of items that offer discounts to make it organized for the buyer.
Can I offer coupons on physical stores if I have an e-commerce site?
Yes, you can definitely offer coupons on your physical store to encourage people to shop on your e-commerce store. It will also add familiarity to the products they will be seeing online. This strategy is good for people who are not so tech-savvy and still prefer to buy on physical stores, since they may eventually turn into online shoppers.
References
- Philippine Statistics Authority. (Year). Statistics on Internet Usage in the Philippines.
- Statista. (Year). E-commerce in the Philippines.
- Euromonitor International. (Year). Digital Consumer Trends in the Philippines.
Ready to boost your Filipino online sales with smart discounts? Don’t wait any longer. Start experimenting with different discount strategies, track your results, and see what works best for your business. Your customers are waiting for those irresistible deals!
