Using a specific dollar amount instead of a percentage off will yield better results.
Often you’ll see an offer with a percentage off. How much does a percentage off mean to you? You don’t know what the actual dollar amount is and when that happens, you’re less likely to see the benefit. Companies are making it harder for their customers to know what the actual savings will be.
A slight switch. Instead, always offer a specific dollar amount. Your customers can relate better to a $10 gift certificate than a vague percentage off.
Think about when someone gave you a Gift Card. You know what the amount is and what you’ll receive. It’s like getting cash.
In a recent study published in Entrepreneur magazine, A test email offer was sent and the difference between offering a percentage off compared to an actual dollar amount. The ads were the same except that one offered 15% off the total sale, while the other offered $50 off.
The results of the test were quite clear. The $50 off coupon generated 170% more revenue than the 15% off coupon, and its conversion rate was 72% higher. Interestingly, however, with subject lines that clearly stated the offer as either 15% off or $50 off, the open rates and click-through rates were pretty much the same for the two versions. This means that people were opening both emails, but responding better to the $50 off coupon.
Try changing your offer to a specific dollar amount. Getting a higher conversion rate will mean attracting more customers and more sales.