Time Required: 5 minutes
Results: Eliminating low-ball offers and increasing margins
With Holiday shopping in full swing, now is the perfect opportunity to automate PriceWaiter to maximize performance and save time.
As a premium retailer, you are probably aware of our offer management automation tools available in the settings section of your dashboard. If you are not, here’s the jist:
- Automatic Rejection allows you to set a minimum percentage discount you are willing to consider. Any offers that ask for more of a discount than that percentage receive a notification that their offer has been rejected. (Eg. Any offer asking for more than 50% off gets rejected without your manual review)
- Automatic Counter-Offer allows you to set a percentage maximum that automatically counters down to a separate percentage discount that you are comfortable with. (Eg. Any offer asking for greater than 50% off gets countered down to a 15% discount)
While automatic rejection of low-ball offers seems like a simple way to save time – beware: You are completely eliminating the chance that that customer has an opportunity to complete the purchase from within the PriceWaiter ecosystem.
By taking advantage of our Automatic Counter-offer functionality instead of Auto-Reject, your customer will receive an email notification that you are still willing to offer them a discount, and a conversion-friendly checkout button will be located right there in the email.
We highly recommend switching strategies from rejection of lowball offers to counter-offering down to a reasonable discount, even if that discount is 0% or 1%, and the numbers back up this strategy.
26% of offers that are countered end up in a transaction. That is right, 1 in 4 offers end up checking out by simply countering instead of rejecting. That sky-high conversion rate is reason enough for you to adopt this strategy.
You can even use this functionality to counter back to your full price so that the shopper still has the ability to check out directly from the notification email. Because our system allows you to provide a custom message to offers that trigger this automation, you can counter-offer back to full price or a slim discount and include a message similar to the following:
Due to exceptionally slim margins, this product cannot be discounted any further. If you’d like to go ahead and purchase, click here.
You can also take advantage of both features simultaneously. This would allow you to automatically reject any offer requesting more than 90% off, and counter offer any offer requesting between 40% and 89% automatically down to 12%. These thresholds mentioned above are just examples and you can tweak them exactly how you would like.
To implement the above strategy, complete the following steps:
- Navigate to ‘Advanced’ under Settings, on the left side of your dashboard
- Click ‘Configuration Options’ under Automated Counter or Reject
- Enable Automatic Counter Offering and set your thresholds
- Add a custom message to be sent to any customers who trigger this feature
- Make money and save time!
If you have any further questions about this strategy, don’t hesitate to reach out to us. We’ll get back to you within a couple of hours!