How to use tiered discounts on Shopify

Introduction

If you’re looking to boost sales and entice customers to buy more, offering tiered discounts on Shopify can be a game-changer for your online store. Most customers say that discounts influence where they shop, and discounting can be put down to a fine art in the competitive world of e-commerce.

One of the benefits of using tiered pricing is that you can reward customers for increasing their Average Order Value (AOV). Well-thought-out deals incentivize shoppers to add more items to their shopping carts. If you’ve been reading our articles for a while, you’ll be no stranger to the commercial rewards gained from promotions on your e-commerce store.

In this article, we’ll talk you through the process of setting up tiered discounts on Shopify with EasyGift. Whether you’re a seasoned e-commerce merchant or just starting your online retailing journey, this step-by-step guide offers invaluable advice for driving more conversions and increasing customer loyalty.

What are tiered discounts on Shopify?

This is a simple pricing strategy that encourages shoppers to purchase more items by offering them greater savings as they buy more. It’s an approach that’s effective for boosting AOV and retaining customers. With the right set-up, promotions like this can be configured to apply to specific products, collections, or storewide.

Here, we’ll focus on using EasyGift to do this seamlessly.

5 easy steps to integrate tiered pricing

It’s so simple to get started, you’ll be attracting customers and increasing conversion rates in no time!

1. Install the EasyGift app

First, simply download the app from the Shopify app store. We have a couple of different options for you to try out. For example, the standard plan at $5.99 per month allows you to use simple rule triggers for up to 3 rules. You can also introduce basic customization and product stock alerts. This is great if you’re just getting started and want to test the waters.

For those of you who are already savvy in the world of e-commerce, the unlimited plan will be your best friend. At $14.99 a month, this offers highly customizable features including unlimited rules, advanced triggers, and priority feature requests. With both plans, you get access to our amazing customer support.

Once the app is downloaded and your plan is chosen, you can get started on the exciting part.

2. Configure your promotions

Next, you can begin to configure your tiered discounts. Using our user-friendly interface, you have the option to create custom offers that suit your needs. Pick the type of promotion from the number of options, and away you go!

As an example of effective tiering, you could offer a 10% discount for orders over $50 and a 15% discount for orders over $100. This will push up AOV by giving your customers incentives to access better promotions.

You can integrate combination triggers too so this applies to specific products or collections. Even better still, schedule one or multiple rules to be triggered at the same time with the advanced plan.

3. Promote the offers

Now that you’re ready to go, you need to promote your discounts to effectively maximize their impact. This can be done in many different ways.

For example, home page promotion is good when customers are already clicking through to your website. Countdown timers are great for this, as we’ve discussed before. Additionally, Email marketing is great to draw in repeat business.

To reach new customers, however, you need to go further. Social media, Google ads, and influencer marketing are all increasingly popular ways of reaching new audiences.

4. Monitor and optimize

To continue to maintain an effective promotions strategy, you need to monitor how your discounts are doing and optimize them over time. Use the analytics features provided by our Shopify app, EasyGift to track how your discounts are impacting your sales and AOV. Look for trends and patterns to identify what’s working and what needs improvement.

There are some key performance metrics to keep an eye on. This includes the conversion rate, meaning the percentage of visitors to your site who purchase after seeing your discounts, and AOV, as already mentioned. You also need to look at customer retention—or how many repeat purchases are made—and return on investment (ROI), to ensure these promotions are profitable.

Based on your analysis, you can then adjust your tiered discounts on Shopify to strategically get the best results. Continuous improvement is important in a competitive market.

5. Stay competitive

That brings us to the final step: staying competitive. E-commerce is a dynamic and ever-changing space, so it’s essential to stay up-to-date with industry trends and competitor strategies. Keep an eye on what other successful Shopify stores are doing, and consider your approach accordingly.

Furthermore, regularly revisit and update your tiered discount structure to keep it fresh and appealing to your target audience. What works today may not be as effective in the future. You need to be adaptable to keep ahead of the competition!

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