Maximise Black Friday Sale Profits With GoKwik’s 200+ Discount Configurations

Indians love sales and discounts. And, why not? They’re a perfect way to save some bucks on every order they place and feel like a savvy shopper. Be it the prolonged Indian festive season sales or the globally famous Black Friday & Cyber Monday sales, Indians just love buying stuff at discounted prices.

But what’s in store for the eCommerce brands offering such heavy discounts on almost every purchase during these massive once-a-year sales?

Shh… There’s a secret behind it!

Giving discounts to customers is one of the smartest and quickest ways to entice them into buying products from your site. Anytime you tell a shopper they can save money, you’ll surely get their attention.

From getting those fence sitters on your site to increasing sales, average order value, and customer retention, discounts serve as the perfect weapon every business must have in its arsenal.

In this blog, we’ll shed some light on

Let’s get started.

Black Friday is the day after the U.S. Thanksgiving Day which is observed every year on the last Thursday of November.

While many stories are told around why the day was named ‘Black Friday,’ one such theory was that businesses across the United States operated at a financial loss until the day after Thanksgiving when people left their homes and began their holiday shopping spree.

To compensate for their losses, businesses and shop owners started offering best deals and heavy discounts to customers on a variety of products across various segments the following Friday.

And, to keep the momentum going, retailers extended their sale to the following Monday, however online. Hence, the day was named ‘Cyber Monday.’

The reason being, retailers understood that masses had to go back to the office the Monday after the Black Friday sale. However, to keep things going, they extended the offers and discounts via their eCommerce stores. This way, they not only increased their sales but pushed the masses to get the hang of online shopping as well.

According to a report, brands typically witness up to 240% and 380% increase in their revenue during the Black Friday and Cyber Monday sale respectively.

Consider discounts as ‘The Man Of Many Faces.’ There’s so much you can do and so many types of discounts that you can create to lure your audience base and get them to make that purchase.

But, let’s face it. There’s no one-size-fits-all. Every business runs on a different strategy and hence, must decide which types of discounts would best benefit them during such hyped sale periods.

GoKwik understands this and brings on the best-in-class and most advanced discount engines on the market today. Our feature enables you to optimise your business cash burn and increase conversion rate by offering a variety of discounts to your target audience.

To give you an example, Gokwik’s dynamic incentivisation feature enables you to offer multiple percentages of discounts depending on a customer’s profile and their propensity to prepay.

GoKwik’s discounting module offers 200+ discount configurations giving you the necessary flexibility you need to choose the best discount options that can help you maximise your revenue and at the same time, reduce cashburn.

Let’s take a look at some of GoKwik’s discount configurations.

This is the most common or standard form of discount that you can embed and/or offer to customers. Simply reduce the cost of the product based on a set percentage. For instance, flat 10% off on the first purchase, or 20% off on all orders.

Offer a percentage discount to customers who make payments via digital payment mode. This helps increase the propensity of prepaid orders and decreases the chances of CODs and thereafter causing return of orders or cancellations before delivery, otherwise called return-to-origins (RTOs).

To give you an example, here’s what a prepaid discount would look like.

Similar to its counterpart, with this discount you can offer concessions at multiple tiers. For example, give a 5% discount on orders up to INR 999/- on paying via UPI and subsequently, provide a 10% discount on orders above INR 1000/- on UPI payment. This is another excellent way to reduce RTOs and tedious cash-led payment cycles.

This means you have the leverage to set your own product price-point and offer discounts accordingly. For instance, even if you offer a 20% discount on a particular product, you can set the price of the item in a manner that you do not end up in loss. In other words, the discounting feature allows you to maintain the per-unit profitability mark and prevent fraud.

Original Product Price = INR 1000/-

Marked Product Price = INR 1250/-

Discount Offered = 20%. Of Marked Price

= (20% of INR 1250)

= INR {1250 × (20/100)}

= INR 250/-

Selling Price = (Original Product Price) – (Discount)

= INR (1250 – 250)

= INR 1000/-

Hence, the selling price of the product is INR 1000/-

This discounting feature is most effective in increasing average order value and overall profit margins. For instance, the more items a customer adds to their cart, the more discount they get. Meanwhile, other examples could be, “Buy 1, Get 10% off,” “Buy 2, Get 20% off,” etc. You can easily map dynamic discounting with a single coupon code on GoKwik Checkout.

With this feature, you can offer gifts to customers above a certain cart value. For instance, give them a free body lotion on a cart value above INR 799/- or a complementary perfume on a cart value above INR 999/-. This again helps increase average order value and profit margins.

Powered by machine learning, this discounting type enables you to embed intent-based discounts on your site. For instance, if a person shows high intent of buying a product, then machine learning will study their purchasing behaviour and craft a discount which will suit the customer and ensure a conversion.

The discounting form ideally works on constrained optimisation logic to maximise conversion rate while minimising your business cash burn.

As the name suggests, auto-apply discounts are the ones that are automatically applied to a shopper’s order, if they meet a certain order criteria. These discounts are not only compelling for shoppers as they do not need to find, remember or apply the code at the time of checkout. They also help improve conversions by 1.5x.

Besides the above-mentioned forms of discounts, go the extra mile and offer discounts beyond checkout to stop further leakages.

Considering that a large part of shoppers pay via a prepaid option in lieu of the additional discount that you just offered, many would still be hell-bent to place COD orders.

Give them another chance to avail the extra discounts.

Once a shopper successfully places a COD order and is redirected to the Order Confirmation/Thank You page, you can use GoKwik’s Cash-to-prepaid Discount feature to lure them one last time. Give these sceptical customers another chance to avail additional discount by paying via a digital payment mode and save those extra bucks.

If you’re using WhatsApp as a channel to confirm COD order placement, you can leverage it to convert these COD orders into prepaid ones as well.

Here’s how.

Many times shoppers abandon their carts due to numerous reasons. GoKwik gives you the leverage to offer discounts to customers who abandon carts midway through the checkout process.