https://www.glossy.co/fashion/the-15-off-first-order-discount-is-gaining-importance-among-fashion-brands/
The first order discount has become an essential tool on many brands' websites. The article discusses that this tactic is so widespread, that many customers recognize when a brand does not offer this discount. The discount is pretty low, so it is not a huge cost to the customer, but is extremely beneficial. It incentivizes new customers to make a purchase, and when customers input their email, brands receive their information to continue the relationship by tracking their visit and purchase history.
The tactic is even more essential in the pandemic. With significantly higher volumes of online traffic this year, brands are seeing this discount drive higher rates of conversion. The discount pushes the customer through the marketing funnel from consideration to conversion. With the information gained from new customers signing up to receive the discount (the more valuable first-party data), customers move towards the "loyalty" part of the funnel. The small perk of a discount greatly supports email marketing efforts by making people more likely to subscribe.
Personally, I have subscribed to brand emails at a faster rate than I have unsubscribed from them, especially during the pandemic. As someone who shops online often, I definitely have noticed that I am more likely to purchase an item and re-visit the site later if they offer a first time discount, however small the amount may be.
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