Pricing & Promotions
Pricing strategy and promotional terminology covering discounting, dynamic pricing, and promotional campaign optimization.
The metrics that decide whether your brand scales.
Pricing strategy and promotional terminology covering discounting, dynamic pricing, and promotional campaign optimization.
Understanding pricing & promotions terms is essential for any DTC operator looking to measure and improve their ecommerce performance.
Use the terms below as reference when analyzing your campaigns, reviewing reports, or communicating with your team.
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Dynamic Pricing
Adjusting prices in real-time based on demand, competition, or customer segments.
Psychological Pricing
Pricing strategies leveraging cognitive biases like charm pricing ($9.99 vs $10).
Charm Pricing
Ending prices in .99 or .95 to appear lower. One of the most effective pricing tactics.
Price Anchoring
Displaying a higher reference price to make the selling price appear more attractive.
Bundle Pricing
Combining multiple products at a total price lower than purchasing individually.
Discount Code
Alphanumeric codes customers enter at checkout to receive a discount.
Automatic Discount
Discounts applied without requiring a code, based on cart contents or conditions.
BOGO
Buy One Get One - promotional offer providing a free or discounted additional item.
Gift with Purchase
GWPOffering a free item when customers spend above a threshold.
Flash Sale
Limited-time discount creating urgency. Typically 24-48 hours with deep discounts.
Tiered Discount
Increasing discount percentages at higher spending thresholds.
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