Offering discount prices is an age-old business strategy that has remained relevant since its introduction in the late 1800s. Coca-Cola implemented one of the earliest known discount strategies in 1888 when the company sent out free coupons redeemable for a glass of Coke at any pharmacy, and many other companies followed suit over the years. According to Software Advice, up to 97% of retailers use discounts as their primary pricing strategy. However, with the continued evolution of ecommerce and the endless demand for it personalization, there is an ongoing industry shift towards personalized discount strategies, and brands cannot afford to be left behind.


A discount pricing strategy is a promotional marketing technique that involves lowering the original price of a product or service to encourage prospects and customers to make purchases. These fixed value or percentage discounts are offered to customers through codes or coupons. Incentives such as Buy One Get One or free shipping are also examples of discount promotions. Personalized discount strategies involve targeting specific customers with promotional offers tailored to their preferences, behavior and purchase history. It is a method that uses data analysis and customer information to formulate pricing strategies relevant to the targeted individuals.

A well-designed rebate program will often turn out to be a marketing masterpiece in many ways. Personalized discounts make the customers feel valued and valued by the brand, and that will create loyal customers who are likely to return for future purchases. Since not many customers can resist the temptation of a personalized one, there will be a noticeable increase in conversion rates. In addition, personalized discounts encourage customers to buy more items or even upgrade their purchases to more expensive products. This can increase average order value and total revenue. Finally, companies that employ efficient, personalized discount strategies are likely to differentiate themselves from others and gain a competitive advantage.


Companies should collect substantial customer data before launching a custom discount program. Veraction and analysis of the data using software such as CDP and CRM will provide valuable insights into the preferences and needs of the customers so that the brand intends to offer personalized discounts. After performing data analysis, the company can choose the personalized discount option that best suits the specific customers.

Here are some of the personalized discount strategies that have been shown to deliver the best results for ecommerce brands:


Leaving the shopping carts remains one of the biggest problems in all ecommerce sectors. According to the Baymard Institute, the average shopping cart abandonment rate is about 69,57%. This represents significant potential revenue that companies regularly miss out on. Pricing is a major motivation for customers to abandon their shopping cart. High additional costs, such as VAT and shipping costs, often deter customers from completing their purchases.

In addition to clarifying total costs up front, companies can address price-induced shopping cart abandonment by including personalized discounts in abandoned cart emails. Even if the carts were abandoned for reasons other than high prices, this strategy is still a great way to motivate customers to complete the trades.

Currently, the evidence supports the use of abandoned cart emails as a personalized discount strategy. An interesting study from SaleCycle showed that abandoned cart discounts have an average conversion rate of 18,64%. In comparison, abandoned cart emails without discounts have a conversion rate of 10.7%. Similarly, a report from Barilliance suggests that offering discounts in abandoned cart emails can increase the likelihood of a purchase by as much as 40%. This makes abandoned cart discounts one of the personalized discount strategies that yield the highest dividends for ecommerce brands.


Customer acquisition can sometimes be a difficult and costly process, but it is important for the growth and expansion of the business. People place a high value on first experiences. In a survey by Invesp, 44% of respondents said they are more likely to become a long-term customer if their first shopping experiences were positive.

New customer discounts are a great way to make a positive first impression for customers and prospects. It is an important step to retain newly acquired customers and reduce churn, which hurts revenue inflows. Therefore, companies should consider incorporating new customer discounts into their personalized discount strategies if they want to easily attract new customers.


Giving customers discounts on birthdays is one of the best personalized discount strategies companies can implement in their marketing plans. It's a simple yet powerful way to show customers that your company values them. As a result of offering these discounts, companies feel emotionally connected and loyal to your brand.

Veranniversary discounts have a positive effect on the turnover of companies that offer them. An Experian study found that birthday emails have a 481% higher transaction rate than other promotional emails, proving that customers are more likely to redeem personalized discounts that come on their birthdays. Therefore, companies must work strategically to maximize this opportunity by collecting personal data from customers and designing promotional offers that are financially beneficial to both parties.


The changing landscape of ecommerce means customer retention has become a top priority for brands. So while companies are first offering discounts to acquire new customers, plans for personalized discount strategies should also be made to win back customers who have dropped out or are at high risk of doing so. The importance of such discount offers is emphasized by the fact that a 5% increase in customer retention leads to an increase in 25-95% products.

For churn prevention discounts to work well, brands must first identify the customers who are at risk of switching. This includes collecting and analyzing behavioral and engagement data and other practices such as customer segmentation and feedback management. Veraccordingly, brands can offer discounts on future purchases or free shipping to win back these customers.


Despite the emphasis on paid advertising campaigns, word of mouth remains one of the most effective methods of acquiring new customers. According to Nielsen, people are 77% more likely to buy a product if they hear about it from friends and family. Hence, referral discounts are a great way to leverage the benefits of word of mouth.

By encouraging customers to refer new prospects with personalized discounts, companies can increase sales and save costs that would otherwise be spent on paid marketing campaigns. A study by the Wharton School of Businesses shows that referred customers have a 16% higher lifetime value than customers acquired through other means. 1TP239Referral discounts not only help attract new customers, but they also serve as a method of rewarding existing customers. Therefore, referral discounts are definitely one of the personalized discount strategies to consider.


Personalized discount strategies aim to increase the average residual value, generating more sales per customer. Upsell and cross-sell discount offers to encourage the purchase of additional or related products help companies achieve this important goal. In addition, these discounts are an opportunity to show that you understand customer preferences and interests. Therefore, companies need to collect and analyze relevant data so that the product recommendations are accurate enough to encourage customers to accept the upsell and cross-sell discounts.

In conclusion, personalized discount strategies can be a powerful tool to drive sales growth and customer satisfaction. It's important to note that businesses must strike a balance between low discounts that customers may find unappealing and high discounts that can negatively impact profit margins. Striking this balance and implementing any of the discount strategies above will ecommerce brands and their customers have a mutually beneficial relationship.