Promotions that focus on deep discounting are out, according to a white paper published by demandware, a company specializing in e-commerce. "Retailers are getting savvy to the fact," demandware experts say, "that offering deep discounts to all customers is serving only to lower margins and cheapen the value of the products among many customers who would probably have purchased anyway."
In other words, be nice to your customers.
Better technology, demandware says, makes it possible for retailers to move strategies toward loyalty-based promotions known as surprise and delight giveaways. "Time has shown that customers appreciate receiving something for free, especially when they are not expecting it. These customers are likely to return to purchase again."
Small things — such as sending customers a thank you message along with a percent-off coupon for their next purchase — can go a long way, demandware says.