Thinking
At Public Nectar, we've seen again and again how a weak offer can stunt a brand's growth. But with the right strategies, even a simple offer adjustment can lead to explosive results.
We recently worked with a client who was running a blanket 30% discount across their store. Here's a behind-the-scenes look at how we did it and the key takeaways you can apply to your own brand.
By strategically repackaging their offer, we helped them achieve:
- 12% increase in Average Order Value
- 15% boost in Conversion Rate
- 5% higher Profit Margins
- 295% Revenue Growth
1 → Product & Offer Research
The client's 30% discount, while attractive on the surface, was eating into their margins. We needed a more sustainable approach. Our solution? Introduce a "Buy One, Get One" offer.
By crunching the numbers, we found that offering a 25% discount on two products instead of 30% on one actually increased profit per order while still presenting an enticing deal to customers.
The key was in the messaging. Rather than a generic "25% off," we framed it as "Buy Two, Get 50% Off Your Second Item!" This allowed us to leverage the power of a 50% discount in the customer's mind, even though the effective discount was lower.
2 → Offer Weighting
But what if the products in the "Buy One, Get One" bundle have different values? That's where offer weighting comes in. Let's say Item 1 is £50 and Item 2 is £30. If we apply a flat 25% discount to both, that's £20 off the total £80 order value.
Instead, we weighted the discount towards the lower-priced item. So the messaging became "Buy Item 1, Get 66% Off Item 2!" In reality, it's still a £20 total discount, but psychologically it's much more powerful.
3 → Budget Distribution
With the new offer in place, it was time to scale. We started by testing the fresh messaging and creatives with a small budget. As the campaigns gained traction, we began strategically redistributing budget from lower-performing campaigns into the winners.
Once the conversion rates stabilised at the higher spend levels, we gradually scaled the account to a 96% total increase in ad spend. This steady, data-driven approach allowed us to push budgets aggressively without sacrificing profitability.
→ The end result?
A 295% increase in revenue at a significantly higher profit margin.
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This is the power of working smarter with your offers and ad campaigns. Sometimes a simple change, executed strategically, is all you need to kick your growth into high gear.
If you're ready to see how offer optimisation and ad management can upgrade your brand, book a free discovery call with Public Nectar today. Let's unpack your growth potential together.
Strategy Insights
→ Find Your Hidden Offers:
Dig into your products and get creative with how you can bundle and position them. There's often an enticing offer hidden in plain sight.
→ Bundle Your Products:
Customers love a good deal. Experiment with different product pairings to increase average order value.
→ Weight Your Offers:
If your bundle includes products of different values, consider weighting the discount towards the lower-priced item for maximum psychological impact.
→ Test Before Scaling:
Always validate your new offer and messaging with a small test budget before scaling. Let the data guide your decisions.
→ Crunch the Numbers:
Make sure your new offer structure is not only attractive to customers but also profitable for your business. The numbers have to work.
→ Redistribute & Scale:
Once you've found a winning offer, don't be afraid to redistribute budget aggressively. But do it gradually and keep a close eye on profitability metrics.
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