How to Make Promotional Offers Work

In the testing we’ve done, a free- shipping offer consistently boosts the revenue per catalog (RPC) by 25 percent to 30 percent. The chart “Promotional Offers: Free Shipping vs. Control” shows actual results from a recent test designed to reactivate previous customers.

The test group, which received the free shipping offer, generated 25 percent more revenue than the control, which had no offer. The RPC also increased 25 percent, from $1.29 to $1.61. The offer increased the average order value (AOV) about 11 percent, with a 13 percent increase in the response rate.