shopping incentive

Boost Sales with Targeted Incentive Emails

Ecommerce businesses send a variety of emails with discount offers, free shipping, and other incentives to encourage purchasing behavior. Incentive emails can boost sales in the short term but improper handling of these campaigns could lead to undesirable long-term consequences in terms of margins. For example, the brand image could be harmed by an abundance of incentives. Protecting profit margins also involves targeting the right customers, those identified as less likely to purchase without an incentive.

In this post, our team reveals how Retention Science chooses the right users for incentives.

Do Incentives Boost Sales?

In this section, we show that incentive emails boost sales by randomly dividing users into two groups. Incentive emails are sent to one randomly selected group and non-incentive emails to another randomly selected group. We then compare sales resulting from each campaign.

Even though a random selection is not possible, it gives us an idea. Put simply, after everything is set as similar as possible we can check the differences.

To find similar users between these two groups, we need an arbitrary score…


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