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What are intelligent offers (and why should your eCommerce team care)?
By Dan Bond
Here's something most eCommerce teams don't measure: how many of their promotions go to customers who would have bought at full price anyway?
The answer, based on research, is most of them. Studies show 83% of online shoppers will use a discount code at checkout, even when they were already planning to buy.
And according to an IMRG and RevLifter survey of major retailers, 54% of revenue comes from orders made with voucher codes. A figure that hasn't changed in five years.
That means a huge chunk of promotional spend isn't driving new sales. It's just reducing what customers were going to pay anyway.
This is the gap that intelligent offers are designed to close.
The problem with blanket promotions
Traditional eCommerce promotions haven't changed much. A site-wide banner. A pop-up with 10% off. A discount code is floating around on third-party coupon sites. Everyone sees the same thing, regardless of whether they need it.
The results look fine on the surface. The code gets used. The conversion rate holds steady. But the margin quietly erodes, and nobody asks the question that actually matters: did that offer change the customer's behaviour?
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