Now that summer is over, class is in session for marketers planning for the next back-to-school’s season. In our blog series, we’re going to go over what strategies and mistakes impact your conversions during this crucial shopping period.
Read our earlier back-to-school lesson posts here.
If marketers take away anything from the back-to-school shopping season, it’s that charging for shipping kills conversions.
We already know that discounts are attractive to consumers of all stripes. In every white paper and survey, however, consumers always agree that free shipping is the creme de la creme of discounts. One in eight consumers would gladly switch to online shopping if free shipping is on the table. High shipping costs, however, are the number one reason consumers avoid ordering online.
Free Shipping By the Numbers
Diving into the data, it’s clear that a small shipping fee can drastically change a consumer’s path to checkout in multiple ways.
‘The UPS Pulse of the Online Shopper’ showed 56% of shoppers abandon their carts when shipping costs made their total purchase too expensive. An almost equal number, 57%, had no qualms paying full price for shipping…but only if something else was already discounted. Without additional discounts to soften the blow, 45% of consumers will abandon their shopping cart entirely if it didn’t qualify for free shipping.
In addition to saving your brand’s conversions from a steep cut, comScore reported in a 2015 study that free shipping can entice a consumer to make concessions when completing a purchase.
Free shipping continues to drive purchasing decisions as 58% of online shoppers reported adding items to their shopping cart in order to qualify for the incentive. Further, 83% are willing to wait an additional 2 days for delivery if shipping is free, and 68% said free returns shipping is needed to complete a sale. Only 44% of online shoppers said they were satisfied with the flexibility of changing delivery days or rerouting packages.
Even dangling the free shipping carrot in front of your email list will close more sales. Fifty-four percent of shoppers are likely to take advantage of free shipping email offers.
How Free Shipping and Group Discounts Intertwine
With back-to-school shopping comes back-to-school shipping. When college students order a semester’s worth of textbooks and supplies online, shipping costs add up. A free shipping offer combined with a student discount can pay off for brands more than either offer could alone.
Any brand with a back-to-school sale will attract students trying to save money before the new school year, but student-specific offers have a better chance of closing that sale. Ninety-five percent of students surveyed in an ID.me questionnaire said they would be more likely to make repeat purchases from a brand that offered a student discount. Student discounts also hold many benefits in the long run. Group discounts show that customers are appreciated and valued by a brand, fostering brand loyalty and customer satisfaction.
During a high-stakes shopping season like back-to-school, a free shipping promotion targeted at students adds an extra sizzle to your campaign. Contact us to learn how ID.me can help your brand provide group discounts and free shipping without inviting fraud.
The post Back-to-School Lessons: Shipping Costs are a Conversion Killer appeared first on Official ID.me Blog.