The acronym BOGO stands for Buy One, Get One. This technique works so well because it plays directly into the most powerful motivators of consumer psychology: free stuff. It is true, everyone loves free stuff. In fact, people love free things so much that they will overvalue these items to the point of choosing something free over higher-quality items no matter how great the discount. Now, you may be wondering how to use BOGO to increase your own profitability. Here are two ways you can use this eCommerce marketing technique to your advantage:
- Use BOGO to move unwanted or slow-moving inventory quicker while maintaining profitability. If you run the numbers, you are likely to find that you will net a greater profit employing this technique overrunning large discounts.
- Make it urgent. When you create a deadline for your BOGO sales, shoppers are much more likely to make an impulse decision to buy so as to not miss out on a great deal.