The weekend before last I bought an ebook from Kobo.
This last week they sent an email encouraging me to keep reading with a 30% off coupon for another ebook. Which I partook in (as you do).
Then late last week they sent me another email with a 50% off coupon for another ebook. Which I will partake in.
At this rate I'll get a 80% off next and then a 110% off where they pay me... right?
Really though, this is a good way to speed up the behavior cycle.
Ebook sales cost them almost nothing so they have room to discount (especially if the publisher's cut is also discounted). That means once they see a customer engaging in the buying behavior they want, they can escalate it. Especially for a new-ish customer like myself.
Instead of seeing an order every couple of months, they could see an order every other week.
Using the Order Sequencing Analysis in Repeat Customer Insights you can see how much customers spend on their 2nd, 3rd, 4th, etc orders. Using that you can decide when giving discounts for those later orders make sense. Giving away 10-30% on one product to have a customer order a handful of more products is probably worth it.
Especially if you can get a customer hooked on your product.
Directive: Use discounts to encourage a repeat order.
Eric Davis
Customer behavior analysis for better Shopify store performance
The Shopify App that increases repeat customer purchases through customer behavior analysis.