Limited time offer in eCommerce trick in Magento 2

In recent decades, consumers have become accustomed to daily deals, special offers, one-day discounts, and flash sales, leading to a significant shift in how they respond to promotions. More buyers are now willing to make a final purchase when products are discounted, believing that these "bargains" will be available throughout the holiday season. Consequently, online retailers are eager to leverage these types of promotions to increase their sales.

Business owners are aware of the market dynamics and understand that they cannot simply satisfy customer demands by extending offers for an entire shopping season, as maintaining profit margins remains a top priority. Nevertheless, recent market trends have highlighted the vital role of promotions in influencing shoppers' purchasing decisions. This is where the concept of a "limited-time offer" has emerged as an effective solution to this challenge.

The Idea Of A Limited-time Offer

The concept of a limited-time offer encompasses various types of deals, discounts, or promotions that customers can take advantage of when making a purchase within a specified timeframe. Research indicates that these offers tap into a psychological phenomenon known as "fear of missing out" (FOMO), which refers to the anxiety people feel about potentially missing an exciting opportunity elsewhere.

FOMO serves as a significant motivator for purchasing behavior, especially when customers genuinely believe that the offer is only available for a limited time. Data from the NRF has shown that added value on products prompts nine out of ten customers to make purchases they hadn’t originally planned. Faced with the possibility of losing out on a great deal, consumers often feel compelled to act quickly to avoid missing their chance.

The Variety Of Limited-time Offers

Offers can take many forms and shapes, and the ability to propose diverse offer ideas is a crucial factor in the success of a promotional campaign. In recent years, there has been a noticeable increase in the variety of promotional formats. Below, we highlight two of the most commonly used types of offers that have demonstrated the highest effectiveness rates.

Flash Sale

Flash sales are among the most common and fundamental marketing strategies utilized during the holiday shopping season. This term refers to a temporary price reduction that is available for a specific period, creating an enticing opportunity for shoppers looking for great deals.

While lowering prices can result in reduced profits and tighter margins, which may negatively affect a brand's revenue and market perception, retailers often see these losses as necessary promotional investments to boost overall sales volume. By strategically allocating a portion of their budget to attract a wider customer base, businesses aim to achieve long-term gains that outweigh short-term losses.

Discounts naturally draw the attention of consumers, but adding a time constraint to these offers generates a sense of urgency that can motivate initially hesitant customers to make a purchase. Flash sales tap into this psychological trigger, appealing to emotions and driving impulse buying behavior. The thrill of securing a limited-time offer often outweighs rational decision-making for many shoppers.

Furthermore, many consumers do not have a clear reference price to assess the value of a discount, which can lead to a reliance on default recommendations like limited-time offers. This phenomenon makes flash sales particularly effective, as customers may feel compelled to act quickly to avoid missing out on perceived bargains, further enhancing the promotional campaign's effectiveness.

Limited-time Products

According to economic principles, scarcity can drive up demand and enhance the perceived value of an item in the marketplace. This concept underpins the strategy of creating time-limited offers for products. A limited-time product is one that is available for purchase in a specific market for a designated period. It can either be a uniquely recreated version of an existing item (commonly referred to as a limited edition) or a brand-new product debuting in the market.

For example, Dunkin’ Donuts consistently captures attention with its seasonal food and beverage offerings. Each season, the brand introduces exciting new items that pique curiosity among consumers. This summer, Dunkin’ has made a remarkable return with innovative products such as the Cosmic Grape COOLATTA, Banana Split Flavored Coffee, and Shooting Star Donut.

(Image source: dunkindonuts.com)

These new releases captivate customers with their stunning, galactic appearance and promise a flavor explosion with every bite and sip. This seasonal campaign not only encourages repeat visits from loyal customers but also attracts new ones, ultimately boosting sales.

By offering limited-time products, brands can effectively capture the attention of both new and returning customers, prompting them to visit stores. This strategy also sets the stage for future product launches. Additionally, brands that introduce trademarked limited editions create a unique identity that helps them stand out in a competitive market. Customers often feel special and unique when they engage with these exclusive offerings, reinforcing the brand's long-term position and appeal.

An Effective Limited-time Offer

For an offer to truly resonate with customers, they must be acutely aware of the urgency and time limitations involved. Marketers need to have a solid understanding of this psychological principle to identify which aspects of an offer should be highlighted. Below are some suggested ideas and tips to get started.

Understand How Your Customers Want To Be Notified

Limited-time offers should not be confined to a small section or a pop-up on landing pages. This approach is only effective if customers have ample time to visit and explore your website. In fact, more than half of shoppers prefer receiving email notifications about offers. Store owners can leverage this by including promotional offers in transactional emails, encouraging customers to make a purchase during their next visit.

Highlight To Attract

An engaging offer should grab attention at first glance. Here are some strategies to consider when creating a limited-time offer:

• Highlight the deadline: The deadline is a crucial element of urgency marketing that directly influences customers’ purchasing decisions. Draw attention to it using bright colors, bold text, or special effects that make it stand out.
• Use "time limit emphasis" wording: Phrases like “Hurry up,” “Today is your last chance,” “Don’t wait to buy,” or “Expires tonight” create a sense of urgency and evoke excitement in potential buyers.
• Take the lead with command language: Encourage action by using phrases such as “Order now,” “Buy now,” “Take the chance,” or “Call today” to instill a sense of time pressure.
• Attach a countdown timer: Implement a countdown clock at the top of the page to remind customers of the time remaining for the offers, adding a visual element to the urgency.

(An eye-catching banner indicating the daily deal is featured on Loft Outlet’s homepage)

(Another indicator is placed on the category page)

The purpose of these eye-catching indicators on your store is to generate a sense of urgency and enhance customers’ desire, encouraging them to become quicker decision-makers.

Be Honest

When an offer is advertised to end at 11 PM, it should indeed conclude at that exact time. Allowing customers to see the same "limited-time" offers after they are supposed to have expired can undermine trust. If business owners are perceived as dishonest, they risk losing customers' confidence, leading to a decline in customer engagement with their products.

Some Successful Case Studies

Today, marketers are increasingly leveraging their creativity to design sales promotions that capture the attention of store visitors and enhance their willingness to make a purchase. Below are some notable examples to draw inspiration from.

RIPT Apparel’s “Daily Deals”

RIPT Apparel is a clothing brand that specializes in T-shirts and hoodies featuring limited edition mashups of artwork. The brand showcases a "Daily Deals" section prominently on the main page of their website. Each day, three new designs are offered at a discounted price of $13.

Every day at midnight CST, they reset the countdown timer, creating a live countdown of the hours remaining to purchase these products. The sense of urgency stems not only from the timer but also from the fact that these designs are unique works submitted by freelance artists. Customers are motivated to seize the opportunity to own products created by their favorite artists at an exceptionally attractive price.

(Three limited designs available for 24 hours only)

(These designs are submitted by different freelance artists and sold at $13 each)

By hosting daily sales and introducing new products every day, RIPT Apparel has successfully encouraged customers to return frequently, providing refreshed content for an exciting shopping experience. This approach has enabled the brand to effectively implement this strategy for over a decade since its establishment in 2009.

Victoria’s Secret is another well-known name in retail. One of the most engaging features on their website is the eye-catching “Today’s Offers” button, which flickers in the bottom middle of the page. This tab showcases a variety of daily deals, including free shipping coupons, limited editions, discounted collections, and special offers for first-time purchases, with new deals introduced each day. These enticing offers not only draw customers to the site but also provide a convenient way to access all promotions in one place.

(“TODAY’S OFFERS” button at the bottom middle of the main page)

LOFT’s “Mystery Flash Sale”

LOFT’s flash sale evokes a sense of nostalgia, reminiscent of childhood spinning machine games where players eagerly anticipate the prize they will receive from three options. The "mystery" element in LOFT’s offer operates similarly, creating an engaging experience for customers.

By clicking the enticing “Reveal Your Deal” button, shoppers can discover which discount they’ve won from three available options. This intriguing approach has proven effective, as once customers learn about their prize, they are more likely to visit the website to take advantage of the discount they’ve received.

Limited-time offers play a vital role in influencing consumer behavior and boosting conversion rates for retailers. By creating a sense of urgency, these offers can effectively drive purchases and engage customers.

To maximize their impact, businesses should continually update and diversify their offers, keeping them fresh and exciting. This approach not only attracts more customers but also enhances the overall shopping experience, making it more enjoyable for everyone involved.