Case Study on Use of Targeted Discounts To Military Families

military discounts

Editor's note:  One of the things that caught my eye about this tactic is that the conversion rate of customers increased whether or not they qualified for the military discount.  Simply by offering the discount, the site increased its conversions of all shoppers.   

The client: In 2005, Steven Mandell, founder of Party City, decided to create a costume e-commerce site to provide consumers with a wider selection, higher quality products, more fashion savvy designs, and a more convenient shopping experience. Today “Wholesale Halloween Costumes” continues this commitment to delivering the best online shopping experience possible. They provide a year-round source for costumes, hats, wigs, masks, accessories, and seasonal holiday decorations and props. At Wholesale Halloween Costumes, costumes are not just about Halloween.

The Challenge:  Wholesale Halloween Costumes was on the hunt for new ways to differentiate their sites from the competition. It is not a promo driven site, so exclusive discounts to targeted audiences were a great way to stand out and drive incremental revenue.

The Solution: A military discount gated by a SheerID verification form in a simple, java pop-up form was added to the web site. “Getting it live was incredibly easy. We were able to just set it and forget it, which is great,” says Jim Moore, VP of Marketing at Wholesale Halloween Costumes. “We sent SheerID 50K promo codes, and that was about it from an execution stand point. It’s a terrific solution; it’s been all additive with no negative on our day-to-day operations.” The new discounts are prominently featured on the top hand navigation bar and in banners on the home page so they are easy for qualified customers to find.

Results: After launch, Jim Moore and his team theorized that the new offers might not only increase incremental revenue from military, but also improve everyday customers’ perception of the brand and create a feeling of goodwill. They performed a small split test and saw an overall lift in conversion rates of 10-12% on the version that displayed messaging about the military discount. Implementing offers protected by SheerID not only drives incremental revenue on Wholesale Halloween Costumes from military families, but also positively effects revenue across all customer segments.

Other benefits of the program:
• The cost is reasonable.
• The conversion rate is very high.
• The revenue per verification is terrific.
• Zero customer complaints by phone or on social media.

“The return on our SheerID investment is equal to the return we get on our most efficient digital marketing tactic in terms of dollars in, dollars out,” summarizes Moore.

An ROI that is equal to the other best approaches? Most retailers would gladly give it a try. 

About SheerID

SheerID’s instant eligibility verification solutions ensure margin and profit protection for enterprise and SMB clients while also making personalized marketing programs scaleable. By instantly verifying consumers’ eligibility against authoritative data, SheerID delivers a seamless customer experience without interrupting the shopping process. Backed by Voyager Capital, the SheerID verification solution helps clients, including Spotify, The PGA TOUR, and Foot Locker, protect their exclusive offers to high value customer segments such as military, students, and teachers. Verification is available across multiple channels, including online, in-store, via mobile device, or over the phone, all while still keeping customer information safe and secure.

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