Two weeks ago, one of our clients, PerfumeLand.com, tried something out with their pricing on comparison shopping engines and it doubled their revenue.
Instead of keeping a 15% off coupon in their comparison shopping feeds, they simply decreased the price of their products by 15% and removed the coupon. The results were drastic.
Week over week revenue increased by 112.978% and the % of cost to revenue ration DECREASED by 26.311%.
Last week even went higher, increasing by another 22.447% on top of the week before’s increase.
Moral of the story:
Test the effectiveness of your coupons! Sometimes automatically subtracting that coupon from the product price, though guaranteeing that your margins will be cut on all orders, can make a huge difference in terms of sales volume, and overall profitability.