Netotiate’s Alternative to Coupons
A new online sales promotion methodology that is driving average 25 percent revenue increases for participating merchants – even with discounts as low as one percent – is proving to be a viable alternative to consumer coupons.
Right now, the “Make an Offer” patent-pending promotional platform, available from Netotiate, is tailored for merchants generating more than $100 million in annual online sales, but co-founder and CEO Noam Javits said “a plug-and-play solution for small-/mid-sized merchants” is in the cards to be delivered “in the foreseeable future.”
Netotiate’s technology uses behavioral economics, web analytics and customer profiling to predict when the shopper is about to abandon a product page. It then intervenes to keep the shopper engaged by displaying a “Make an Offer” button and asking how much he or she is willing to pay for the item. The system accepts or counters the consumer’s offer based on pre-defined rules that are customized for every brand, category, margin, shopper profile and even down to the SKU level, and then adjusts the price in the shopping cart in real time when a deal is reached.
Early adopters of the program range from Sears Hometown and Outlet Stores (SHOS) to top retailers in Europe and Latin America.