Create a Shopify First Order Discount for New Customers: 5 Tips to Attract New Buyers

First-time customers represent 92% of visitors to e-commerce stores, yet only 3% convert on their initial visit. So, how to turn your browsers into buyers?

The answer is to create targeted first-order discounts. It can significantly boost conversion rates and establish lasting customer relationships.

In this article, you’ll learn how to create a Shopify first-order discount for new customers using Shopify’s tool and specialized apps. We’ll also cover common first-time purchase challenges and how to make new visitors engage with your store.

First, let’s explore the reasons why first-order discounts are essential for your Shopify store.

Understanding the Importance of First-Order Discounts

First-order discounts serve as powerful conversion tools that motivate new customers to make their initial purchase. When you create first-time purchase discounts, they offer your Shopify store several key advantages:

• Build initial trust with newcomers: New visitors often hesitate to purchase from unfamiliar brands. A welcome discount for the first order reduces the perceived risk of trying your products.
• Overcome price sensitivity: A first purchase discount offers immediate value that differentiates you from competitors.
• Streamline the customer journey: First-time buyer discount removes friction from the conversion process. It helps potential customers move from consideration to purchase more quickly.

Now that you know the first-order discounts’ contribution, let’s talk about creating this type of promotion on your Shopify store.

How to Set Up First Order Discount on Shopify for New Customers without an App

Shopify’s native discount system provides a solid foundation for creating welcome offers. After creating the “New Customers” segment, here’s how to offer a first purchase discount on Shopify using this tool:

Step 1: Access your Discount settings

• Navigate to your Shopify admin dashboard and click on Discounts in the left sidebar.
• Select Create discount and choose Amount off products.

Step 2: Configure discount rules

• Name your discount code: Create a memorable code like “WELCOME10” or “NEWFRIEND15” that communicates the offer’s purpose.

• Set discount value: Choose between percentage-based (15% off) or fixed amount ($5 off) discounts.
• Select applicable products: You can apply the discount to all products, specific collections, or individual items depending on your strategy.

💡AOV.ai’s insight: Percentage discounts often perform better for higher-value items, while fixed amounts work well for lower-priced products.

Step 3: Define customer eligibility

• Under Customer eligibility, select Specific customers and choose New customers.

Note: This ensures your Shopify discount code only applies to first-time purchasers.

Step 4: Under Minimum purchase requirements

• Set a specific purchase amount to be eligible for this first-order discount (Optional).
• Configure Usage limits to restrict the discount to one use per customer.

Step 5: Activate and test

• Enable discount combinations for extra perceived value.
• Schedule the start and end dates.
• Click Save, and your discount is now live.
• Add your trigger product and verify that the discount is applied correctly.

Pro tip: Combining discounts encourages repeat purchases and boosts customer loyalty.

💡AOV.ai’s insight: You can combine multiple customer groups for discounts, including new buyers or VIP memberships, to increase customer retention on your Shopify store.

How to Create a Shopify First Order Discount with Apps

While Shopify’s built-in features provide basic functionality, specialized apps, such as AOV.ai Free Gift, offer more sophisticated targeting and automation. Curious how it works? Let’s take a look at how to create an automatic first-order discount with AOV.ai’s app:

Step 1: Choose your discount type

• After installation, in the AOV.ai Free Gift dashboard, click Create campaign.
• Choose your preferred promotion type (e.g., Buy X Get Y).

Step 2: Configure first-purchase discount rules

• Specify your triggered products under the Customer buys section.
• Enable A/B testing in the Customer gets section for optimal discounting performance.

Pro tip: For option B in the A/B tests, enable the Buy X Get X condition to analyze which offer suits your first-time customers best.

Step 3: Select targeted customers

• Under Customer eligibility, choose the New Customers segment.
• Click Add to finalize your offer.

Step 4: Customize the display settings

• Choose among auto-added discounts or the discount pop-up.

Pro tip: Choose the discount pop-up for a personalized experience. It helps customers select a special offer that they prefer.

Step 5: Schedule your first-order discount

• Schedule your offer
• Click Save, and your discount is now available.

Why Discount Apps Outperform Shopify’s Built-in Features?

Third-party apps offer several advantages over Shopify’s native discount system. These benefits tell you why:

• Improved user experience: Specialized apps present offers through attractive pop-ups or banners. It captures attention without disrupting the shopping experience.
• Better analytics and tracking: Third-party solutions provide detailed insights into discount performance, conversion rates, and customer behavior.
• Advanced automation: Apps can trigger discounts with AI-powered suggestions or A/B tests. They enhance your first-time discounts performance and maximize revenue.

5 Tips for Choosing the Right First-Order Discount App for Your Shopify Store

While there are so many apps built for Shopify discounting, selecting a perfect fit for your store is quite challenging. Don’t worry, let us help you find your dream app with these essential factors:

• Compatibility with your theme: Ensure the app works seamlessly with your current Shopify theme without affecting site performance or appearance.
• Pricing structure: Compare free plans, monthly fees, and transaction-based pricing to find the most cost-effective solution for your store size.
• Customer support quality: Look for apps with responsive support teams and comprehensive documentation to help with setup and troubleshooting.
• Mobile optimization: Verify that discounts display work perfectly on mobile devices, as 76% of online shopping traffic originates from mobile devices.

3 Common Obstacles and Solutions for First-Order Discounts

Many Shopify merchants struggle with first-time purchase discounts after launching. Let’s dive into three common challenges and how to overcome them, shall we?

1. Discount abuse prevention

The first problem with first-order offers is discount abuse. Customers create multiple accounts to access first-time discounts repeatedly. This action hurts your profit margins, and here’s how to prevent it:

• Enable usage limits to one use per customer in the discounting configuration.
• Implement email and IP address tracking.
• Require phone number verification.

2. Technical integration issues

Another challenge for first-order discounts is conflicting promotional codes. This happens when you combine multiple discounts on Shopify. So, how can you solve it?

Testing and optimization are the keys to fix technical-related problems. You’ll see which promotion affects others’ performance and take action quickly. Moreover, ensure your chosen app is compatible with your current setup (with our tips mentioned above).

3. Low conversion rates

It is normal when new visitors see your discounts, but don’t make a purchase. The reasons behind this issue are plenty, such as low buying intent, irrelevant discounting offers, or low brand trust.

With pop-up discounts, you create a sense of urgency. It motivates your customers to make an order with an 8.5% higher conversion rate. Another solution for the first-order discount is personalization. 94% say it delivers rewards for the business, such as better customer experience and increased loyalty.

You may encounter those obstacles and learn how to handle them. Now we’ll explore how to drive more new customers through first-order discounts.

5 Strategies to Attract First-Order Customers on Shopify

It takes you 5 to 10 minutes to create a first-time buyer discount. However, what helps you deliver it to your customers effectively? Here are our tactics – made just for you:

1. Optimize your discount value

Research your competitors’ offers and provide compelling value without significantly impacting profit margins. Consider offering 10-15% discounts or free shipping thresholds that encourage larger initial orders.

2. Create urgency with limited-time offers

Add countdown timers to your welcome discounts to create urgency. Messages like “Limited time: 15% off your first order – expires in 24 hours” encourage immediate action.

3. Combine discounts with email capture

Use your first-order discount as an opportunity to build your email list. Require email signup to access the discount, then follow up with additional value and offers.

💡AOV.ai’s insight: Instead of regular first-order discounts, you can gain more sales on Shopify by creating a gift card. This is a practical approach to your email marketing strategy.

4. Personalize the experience

Shoppers engage with brands that recognize their individual preferences and history. Many report feeling “special” and more willing to purchase. Here’s what you can offer to new customers:

• Tailor discount offers based on specific products. For example, viewed or geographic-based products.
• Select perfect placements, such as product page, cart page or post-purchase upselling page.
• Increase brand trust with social proof and real-time sales pop-ups. Third-party apps like Avada Trust Badges increase conversion rates by building your brand’s credibility.

5. Follow up with strategic communication

After customers use their first-order discount, implement automated email sequences. There are many types of this email strategy, such as gathering feedback and encouraging repeat purchases. So, we picked out the three most popular email follow-ups for you:

• Welcome & gratitude email: You send it immediately after purchase to thank them for their purchase. This strengthens your brand’s values.

💡AOV.ai’s insight: Let your new customers know what to expect next (shipping updates, customer support, etc.).

• Feedback & review request: A few days after delivery is the perfect timing. You can ask for feedback or a review about their experience and the product. It helps you gather valuable insights and generate social proof.
• Exclusive offers: Work best after 2-3 weeks of delivery because new customers have experienced the products, and your brands still capture engagement. It encourages retention and strengthens long-term customer relationships.

Conclusion

Creating an effective Shopify first-order discount for new customers requires strategic planning, proper implementation, and ongoing optimization. By understanding how to reward new customers with a discount, you can significantly improve conversion rates and build a loyal customer base.

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