Their eyes are lit, and heart is pounding…
Don’t be surprised – that’s just the state of online shoppers who have seen the magic word called “discount.” Now they will grope for their credit cards in anticipation of a good purchase.
Knowing the impact of promotions on shoppers, ecommerce players can apply these powerful instruments to grow their customer base and increase sales.
Traditionally, owning a Magento-based web store meant being restricted to the default functionality only.
But with Magento 2 cart price rules and Magento 2 catalog price rules at hand, merchants can please customers with a diverse range of benefits.
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Promotion Types in Magento 2 Platform
Now Magento 2 platform has two types of promotion rules: catalog and cart price rules. These cover the promotional needs of all merchants. Each with its own specifics works best for different Magento product types.
Let’s discuss these two promotion rules in detail.
Magento 2 Catalog Price Rules
Visitors browse a catalog of products. Whether they are looking for a bargain or not, the word discount catches their attention immediately. This means that a catalog price rule has come into effect. This rule sets product discounts seen in the catalog and motivates customers to add the product to the shopping cart. Various attributes (SKU, product category, price, etc.) serve as conditions enabling to put products on sale selectively.
Merchants can use the Magento 2 catalog price rule for simple, virtual, downloadable and configurable products. The nature of the latter – it unites variations of a single product under one roof – offers merchants some freedom in applying the rules. They can:
- Choose SKU of the configurable product itself to set a discount for all the associated items.
For example, a merchant sells a dress in three sizes and two colors and uses this option for promotion. As a result, the discount will be the same, whichever size or color a customer buys.
- Choose SKUs of selected associated items they want to put on sale. This option allows a merchant to discount only red dresses of size S and blue dresses of size L.
- Combine several conditions for a discount. Here, sellers can choose the SKU of the configurable product and a particular attribute to discount all the associated products of one color, size, etc.
Magento 2 catalog price rules are highly useful for grouped and bundle products. The idea behind these product types is to encourage customers to make a larger purchase, so a price rule needs to predict if the whole group or bundle is in the shopping cart. This brings us to the second price rule.
Magento 2 Cart Price Rules
Given how many products remain abandoned in shopping carts, merchants can’t mark the purchase as complete when customers click the Add to cart button. Offering customer benefits at this stage of the shopping journey can increase chances to get more orders.
But Magento 2 cart price rules work only inside the shopping cart. Merchants who choose to diversify their assortment with grouped and bundle products must pay particular attention to this promotion type.
By setting a rule that triggers the discount only if customers add all the items within a group or a bundle to the shopping cart, merchants encourage them to buy more at a lower price. But setting a discount is not the only use case of cart price rule. Merchants can vary their promotional campaign with:
- Free shipping offer: As customers are susceptible to shipping terms, free delivery can become a decisive push towards a purchase. For example, merchants can offer this benefit for orders above a certain amount.
- Buy X, Get Y Free promotion. People can hesitate to buy expensive products online. Giving a gift can dispel their doubts.
- Discount with a minimum purchase limit. This is one more possibility to reward customers who buy for a certain sum.
Condition-based discounts just like the catalog peer, a cart price rule either applies for a promotion instantly or generates a coupon code. Along with showing coupons on their ecommerce website, merchants can organize an email campaign and send targeted coupons to first-time buyers, loyal customers, etc.
The Launch of Magento Promotional Campaign
No matter what Magento 2 cart price rules merchants choose to set, they need to think over their promotional campaign.
They have to consider three common aspects including:
Duration. Creating a sense of urgency always plays into the hands of merchants. They can set time-limited promotions or consider the option of event-based campaigns (in the run-up to Christmas, the beginning of the summer season, Black Friday, etc.).
Target audience. Merchants can set a price rule for the whole customer pool or target separate customer groups. Offering four of them by default – general, not logged in, retailers and wholesale, Magento 2 offers to customize the list on demand.
Advertising. By hiding discounts and attractive offers somewhere “inside” the web store, sellers risk wasting all the efforts put into the launch of a promotional campaign. That’s why each price rule goes with the option to add a relevant banner to make the product visible to customers.
To Discount OR Not To Discount?
Buyers’ benefits from ecommerce promotions are clear. They anticipate a real bargain has always been a strong motivation to buy. But what is merchants’ interest to sell at the reduced price and lose profit?
By and large, the logic behind price cutting is to compensate net profit through the overall sales number. Let’s delve deeper to see where else sellers win:
The number of first-time buyers grow. Merchants can use Magento 2 cart price rules to offer discounts for the first purchasers. Seeing a positive consequence of an influx of new customers, they get inspired to hold regular discount programs and continuously feed a customer base.
Repeat customers get a reward for loyalty. Attracting new buyers shouldn’t be the only target. Taking customers returning to a web store again and again for granted, merchants risk seeing them for the better offer from competitors. To cope with such a situation, use catalog and cart price rule. Diversify discount programs and inform customers about attractive offers by emails and banners.
Discounts encourage for a trial. Just remember how many times you looked at a new product and the only factor that stopped you from purchase was its cost?
Having set catalog price rules for specific products, merchants give customers an opportunity to test products at a reduced price and raise chances of their return.
The feedback is very welcome. Thinking outside the box, merchants can generate additional benefits from discounted promotional campaigns. By exchanging coupons for customer reviews, they don’t only stimulate purchases, but also get valuable feedback. It helps them see what works fine and what needs improvement.
Customers make impulse purchases. Expert shoppers wait until Black Friday to get better deals. With more options available to them on their frequently visited stores, they spend less time in deciding on a purchase.
Customers can abandon the shopping process at any point. So, ecommerce stores need to focus on getting them to click the ‘Place Order’ button.
Customers come across discounted products set with the help of Magento 2 catalog price rules. When they settle on one order, they move to the shopping cart, and get extra benefits configured with Magento 2 cart price rules. Finally, when they leave with a bargain, they are more likely to return.
Owners of Magento-based web stores need to play with these tactics to create an atmosphere where both customers and stores owners are winners.
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Fayyaz is a Magento Community Manager at Cloudways - A Managed Magento Hosting Platform. His objective is to learn & share about PHP & Magento Development in Community. Fayyaz is a food lover and enjoys driving. You can email him at firstname.lastname@example.org