Do you know that 80% of online buyers agree for the fact that a coupon on a purchase can motivate them to buy a product which they typically would not buy? Using different coupon strategies has become a part of the e-commerce business strategy and if you are not using it then you are losing a lot of your potential customers. Using the promotional coupons you can attract a huge number of visitors to your site and increase the conversion rates as well. Also, the customers are always in wait for such promotional coupons or sales so that they can purchase their desired product at a comparatively lower price.
When the customer visits your site, browse a product and then add the product to the cart, they may need an incentive to make the final purchase happen. Here a promotional coupon or discount can act as a catalyst for converting the purchase. When you give a customer an additional discount then it may prompt them to buy a product which they weren’t initially buying.
Key Stats Of Coupon Codes
As per a survey, 68% of the online buyers said that they will leave an online store which is not offering any coupon or discount codes. Also, 54% of the buyers expect to receive discounts as coupon codes sent by email. Due to this, 83% of the online stores have started using different types of coupons to increase sales in their stores. Now we will discuss the different coupon strategies to use on your online store.
Coupon Codes Strategies
Magento store is not any rocket science to maintain. You can use different ways to entice customers to your store. Here are the best coupon strategies that you can implement in your store:
Leverage Customer Segmentation
The most prior thing in the coupon codes strategy is to segment them by a customer group. Thus, every coupon will be present in the right set of audiences. Remember, you can’t just offer the coupons to the visitors on your site but can also send them through e-mail to your audience. For email marketing, it is essential to have segmented lists, else it will not work to the fullest. In Magento, it is easy to develop and implement segmented lists. As a result, you will get assurance that your loyal customers are not missing any offers.
Offer coupons with short-term expiry
Limiting the time to use a coupon, can be a great incentive for customers to motivate them for making fast purchases. The shorter the duration, the more customers will be tempted to use it. If you are offering coupon or discount codes that customers have to avail themselves of within the next 3 days, then there will be a high usage rate.
It is the basic mentality, that if a deal is ephemeral and we can lose it if we aren’t quick, then we start wanting an item that we initially not required. Thus, utilizing these coupons, apply an expiry period of 7 days or less. This strategy is highly efficient during the holiday or festive season such as Christmas, Black Friday, Cyber Monday when people are more in mood for shopping.
Offer special coupons for the second purchases
Suppose a customer is interested in buying several items within a single order, but they are in qualm over the total price. The items can be of the same category such as electronics, t-shirts, or of different categories like medical items and electronics. In such scenarios, it is better to offer a discount on the second item. By this strategy, you can motivate the customers to buy more than one item in a single order. It will increase your gross revenue, as well as multi-item revenue. It also helps improve customer loyalty.
Bundled Products Discount
Providing discounts on bundled products is one of the most effective strategies for increasing customer retention. However, it is not just limited to increasing customer loyalty. People are more inclined towards buying bundled items as they feel they are saving items and getting more than what they paid for initially.
Suppose a customer visits your store, and they can get a 30% discount on buying bundled items, then these are the benefits that you will be getting:
- Increase in average order value by selling multiple items at a discount
- Save money on shipping & postage as multiple products will be delivered in a single order
- Increase in the gross revenue
Tiered Discount Offers
This is a very simple and mostly used discount strategy in the market. You offer a particular discount to the customer who is buying two products. The discount gets increased if the customer is buying more products. Thus more the products, better will be the deal. Here’s what usually happens: a customer is more likely to buy one larger item and then multiple small items to meet the requirements of the desired discount. For e.g
- Buy 3 items and get 30% OFF
- Buy 5 items and get 50% OFF
Online sales are more about volume, thus to a particular level, regardless of how much money you have earned in a single sale, what matters most is how many products you have moved.
This strategy may initially seem a bit advanced but it is not as Magento allows you to track the behaviour and movement of the visitor on the site. You can offer coupon rewards to the customer based on their site actions and by encouraging them to focus on certain parts of the site. You can offer coupon codes to returning visitors who are spending a predetermined amount of time on the site.
Coupons as Rewards for Surveys
You can know what your audience wants from your store by surveying them. However, we all know that not every customer is interested in filling the long-questionnaire of the survey, especially when it is not interesting. So how can you entice them to complete?
By offering a reward! If the audience will get a coupon code for the survey they will fill then they are more likely to complete it. Also, since you are offering coupon codes, then it can result in more sales and ultimately more revenue. It is a win-win situation for you and your customers.
You can redirect the customers by a link to a survey, send a mail, or can use a tool so the customers don’t have to leave your site. In Magento, it is easy to develop such tools which are cheap and effective to use.
When we hear the term pop-ups, an annoying pesky came to our mind which we have to close immediately. However, the same popup becomes interesting if it is about an offer or discount. With the advancement in technology, popups can be a powerful marketing tool for improving conversion rates.
A well-timed, strategically formulated pop-up will be something your visitors are relying upon, at least subconsciously. Create a contextual pop-up i.e. provide an offer so that it works. Make sure if the customers have denied the offer then it doesn’t flashback.
Last but not the least, checkout is the last step of the purchase where the customer decides to either make a purchase or not. Sometimes, they need a motivating factor to complete the purchase. In this regard, a coupon at the checkout can be a catalyst. Suppose you are selling burgers. A customer came to your store, added 3 burgers of $50 each, added shipping address and card details.
Then just before completing the purchase, you offer a coupon code “One drink free with a $200 worth of cart”. It is an exclusive deal, else the same drink will cost you $25. The customer may add one more burger for a free drink.
It has been a proven strategy that can increase sales and the gross revenue of an ecommerce website.
In this article, we have understood the worth of coupon codes and how they can increase sales at your store. Hire, The best Magento development company, who have expertise in implementing custom functionalities and building stores from scratch.