Tiered discounts
Tiered discounts
E-commerce
Discounts that grow as customers buy more, such as 10% off two items and 15% off three.
What is Tiered discounts?
Tiered discounts reward larger orders. Tiers can be based on item count (buy 2, buy 3, buy 4), order value (spend $50, $100, $150) or, for loyalty programs, a customer's spending history.
Set tiers with your margins in mind. Each step should be big enough to motivate the next item, but not so big that it erodes profit. A tier just above your current average order value nudges more customers to add one more item.
Example
For example, a store offers 10% off 2 items and 15% off 3 items, each $20. Two items cost $36 and three cost $51. Adding a third item raises the order from $36 to $51, and the customer saves $9 instead of $4.
Why Tiered discounts Matters
Tiered discounts grow order size in a way customers can see and understand, without a blanket discount on every order.
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