What’s More Effective? A Coupon Or A Flat Low Price? [Case Study]

Posted by on August 31, 2012 in Comparison Shopping, Paid CSEs, Strategy

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.

About the Author+Andrew Davis is CPC Strategy's Director of Marketing, an expert in ecommerce marketing strategy, product marketing and all things shopping engine related. You can contact Andrew directly at andrew@cpcstrategy.com or via phone at 619-297-3798. See all posts by this author here.

  • http://www.facebook.com/profile.php?id=1135590035 Dan Creviston

    Nice case study..we were actually talking about this type of situation (sort of) and were going to test a percentage off coupon vs the same percentage price reduction.