What are limited-time offers (LTOs)? 

Limited-time offers (LTOs) are a popular type of promotion, discount, or reward that brands give to customers for only a set period of time like days or weeks. Also referred to as time-limited offers, this type of promotion creates urgency by setting an expiration date, encouraging customers to act now rather than later.

LTOs are distinct from permanent promotions as they're designed to be short-term revenue drivers or customer acquisition tactics, and not ongoing discounts that permanently eat into your business’ margins. 

Using limited-time offers in your loyalty program engagement campaigns may be a powerful way to increase the redemption rate of your offers. 

Why are LTOs important for retailers and brands? 

LTOs serve multiple strategic purposes, such as: 

• Driving unplanned visits and purchases: The scarcity and urgency of an LTO motivate customers to visit a store or make a purchase they weren't planning on. In retail, this drives incremental traffic.
• Testing new products or categories: Brands use LTOs to gauge demand for new items before committing to permanent menu or inventory space.
• To clear inventory: LTOs help retailers move excess or seasonal inventory before it expires or becomes obsolete.
• Managing margins more effectively: Unlike permanent discounts that erode profitability over time, LTOs are controlled, time-bound, and don't become expected.
• Building customer habit loops: Strategic LTO timing (like seasonal offers or personalized ones aligned with customer behavior) can establish new purchasing habits that persist after the limited-time offer expires. 

How long should I run a limited-time offer?

While the length of your promotional window will depend on a variety of factors (customer personas, market, season, etc), there are typical ranges of promotion length to keep in mind: 

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1-3 days (too short): High-urgency but you may miss many customers who don’t check the promotional channels frfequently enough. The one scenario you may choose to use a short LTO window would be around a specific holiday or cultural event. 

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7-14 days (optimal): Enough time for multi-touch reminders on your owned channels while maintaining relative urgency for customers to act now. 

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30+ days (too long): The sense of urgency is lost in promotions that run for a month or more, customers will feel they have more time and not act quickly and forget about the promotion later. 

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However, these are just guidelines, and experimenting with the length of offer availability is recommended to find the sweet spot for your brand and audience. 

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Popular types and formats of LTOs

Discount-based LTOs encourage users to act quickly to capitalize on a time-limited savings amount on a purchase, such as: 

• 25% off your next purchase this week 
• $10 off orders over $50 from June 1-7 
• Free bonus item with your purchase on Thanksgiving 

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Non-discount LTOs revolve around other exclusive perks that a customer can access within a limited time frame, such as: 

• Double loyalty points on every purchase this week 
• 5 days of early access to our annual sale for loyalty members
• Get an entry in our sweepstakes with every login this weekend

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