Business

6 min read

6 Ways Promotions Can Boost Your Bottom Line (When Done Right)

Cassandra Gaston

Written by Cassandra Gaston

Published on Jan 15, 2025

Woman shopping online

For many eCommerce businesses, promotions are often seen as a necessary evil - a way to drive sales…at the expense of margins. The truth is that promotions don’t have to eat into your profits. When used strategically, promotions can increase average order value, strengthen customer loyalty, and improve inventory management. 

Here is a breakdown of six strategies to turn your promotions into profit-boosters and how platforms with extensive offers and promotions features like Broadleaf Commerce can make it easy. 

Targeting the Right Customers Increases ROI

Sounds simple, right? Promotions should be more than just a “spray and pray” situation. Instead of sending the same discount to everyone you can, you will probably see better profits when you offer personalized offers to reward loyal customers or to covert hesitant buyers. The right promotions, sent at the right time to the right people, will significantly boost your ROI. 

How to do it:

  • Use historical data to create segment-specific promotions (like loyalty rewards or cart recovery offers).
  • Run targeted promotions based on behavior - like repeat buyers who shop during sales or customers who need an incentive after browsing but not purchasing. 

Leverage stacking wisely to increase average order value.

Stacking discounts can be a double-edged sword; they can drive larger orders or cost you even more in profits if you aren’t precise. The trick here is to create stackable rules that complement each other without overlapping in a way that customers receive unintended discounts. Stacking can make customers feel like they’re “getting a deal” without giving away too much. I know when I find offers that stack, I get a slot-machine type of rush and head to checkout with a vengeance.  

How to do it:

  • Create promotions that reward larger carts (Free shipping on orders over $75 plus 10% off accessories)
  • Use “Buy More, Save More” offers, such as “Buy 2, Get 1 Free,” to encourage volume purchases while protecting margin on individual units. 
  • Ensure you have clear rules for exclusions (such as premium or low-margin items) to prevent discount over-stacking. 

When customers can layer discounts, they feel like they have found a cheat code. It creates excitement and drives higher spending without putting your margins in the red. 

Promote the Right Products to Avoid Margin Loss

Not all products need to be part of your promotions! Offering discounts on your bestsellers can do more harm than good, especially if customers were wiling to pay full price anyway. Instead, focus on bundling slower-moving items with popular products to move more inventory, or use product-specific offers to upsell and cross sell. 

How to do it:

  • Bundle complementary items for higher margin deals 
  • Create offers that align with your business objectives, such as promoting high margin seasonal products
  • Exclude low-stock or premium products to avoid depleting inventory where demand is already strong

By being selective, you ensure your promotions create value without sacrificing the integrity of your most profitable items. 

Align Promos with Operational Goals, not just Revenue

Promotions aren’t just about driving revenue, they can also improve operational efficiency by reducing overstock and consolidating small orders into larger ones. A thoughtful promotion strategy ensures that fulfillment costs don’t spiral out of control wile keeping inventory moving smoothly. 

How to do it:

  • Set a free shipping threshold to encourage larger orders
  • Use flash sales to clear seasonal inventory or slow-moving stock
  • Create location based offers to optimize fulfillment and balance inventory across warehouses

When promotions align with your inventory and logistics strategies, they not only boost revenue, they help you streamline operations and reduce excess costs. 

Stay Agile with Real-Time Control Over Promotions

Even the best-planned promotions need the ability to pivot. Whether it’s a competitor sale, changing customer preferences, or trending products, having real-time control over your promotions allows you to seize opportunities and correct underperforming campaigns.

How to do it:

  • Run flash sales during peak shopping periods to capitalize on demand spikes.
  • Use A/B testing to identify which promotion type performs best and adjust accordingly.
  • Adjust offers in real time based on live sales data, such as adding a bundle discount if a product isn’t moving as expected.

Having the tools to create and update promotions quickly—without IT dependencies—allows your team to respond to market trends at the speed of customer demand.

Re-Engage Customers Post-Sale to Increase Loyalty

Promotions don’t have to stop after checkout. Post-purchase offers can build stronger customer relationships and encourage repeat purchases. These promotions can take many forms—whether it’s a discount on the next order, a loyalty points boost, or early access to an upcoming sale.

How to do it:

  • Send follow-up offers to first-time buyers, such as "Get 15% off your next purchase within 30 days."
  • Provide exclusive perks for loyal customers, like early access to holiday collections or flash sales.
  • Include "next purchase" coupons in your shipments to encourage customers to return.

By continuing the conversation after the initial purchase, you strengthen the relationship and create additional touchpoints that drive long-term value.

Bonus Tip: Measure Promotion Success Holistically

When evaluating promotions, it’s important to look beyond direct conversions. Many customers may interact with your promotion but convert later through a different channel, like your Amazon listing or brick-and-mortar store. A successful promotional strategy considers the entire customer journey and captures indirect conversions.

Metrics to track:

  • Average Order Value (AOV): Measures how much customers spend per transaction.
  • Customer Lifetime Value (CLV): Tracks how much a customer spends over their entire relationship with your brand.
  • Return on Ad Spend (ROAS): Helps you measure how promotions tied to advertising impact overall sales.
  • New vs. Returning Customers: Understanding who responds to promotions helps you optimize future offers.

By looking at the bigger picture, you can determine whether your promotions are truly driving growth and how they contribute to your overall sales strategy.

Final Thoughts

Promotions don’t have to hurt your bottom line—they can be one of your strongest growth levers when done strategically. With the right tools and insights, you can create targeted, intentional offers that boost average order value, build customer loyalty, and improve operational efficiency.

By taking a thoughtful approach and leveraging platforms with a well built Offers & Promotions offering, like Broadleaf Commerce, you can make data-driven decisions and pivot in real time to respond to changing market trends. The key takeaway: When your promotions are smart, flexible, and measurable, they become a profit-boosting powerhouse—not a margin killer.