Digital codes and coupons are a constantly growing trend in eCommerce world. There is no doubt, they should be a part of an eCommerce website strategy of every online store, that wants to reach a growing and affluent audience. What are they?
Digital coupons and codes are discounts, offers and promotions offered by an online store to current or prospective customers. Similar to their tangible counterparts, coupons are aimed at enticing a consumer to make a purchase at an online marketplace. People are likely to get something for nothing, they like to believe they being given a gift. That is why they are so eager and happy to use these types of discounts.
Types of coupons:
Downloadable coupons: Customers can download coupons from a number of different locations: from a company’s website, from an email or via social media. Most of the time, these coupons are accessible from mobile devices as well.
Mobile coupons: Devoted to platforms with mobile applications that offer mobile-only coupons.
Coupon codes: This kind of discount is faster than downloading a coupon. It’s a combination of brand-unique numbers and letters.
Automatic discounts: They are automatically applied at a checkout. They are convenient for customers, because they don’t have to do anything to receive a discount.
Types of discount:
Flat-price off: A coupon offering $ off your next purchase. It works best for stores that have low average order value, and may not be suitable for stores selling high-end products. It acts as a security blanket by guaranteeing you a certain profit margin.
Buy one, get second free: In this case the pricing of the products is the key. When using such coupons, it’s a good idea to test in on a certain product, unless you’re selling different variants of the same item.
Percentage discount: The % off your next purchase’ coupon is suitable for stores that have a high average order value.
Benefits for your business?
Coupons are easy to implement,
Coupons are easy to track,
They prompt buying behavior,
They provide measurable results,
They help increase conversions,
They reduce cart abandonment,
Businesses connect with a younger customer (social media) and build relationship,
Digital coupons are more convenient from a customer standpoint,
They’re cost-effective and efficient since they’re delivered digitally( not pirnted),
They are controllable by eCommerce companies which conduits when they want to use to distribute coupons,
Be aware : Critics of coupons say the reduce average order value and drive non-loyal discount shoppers!
Tips for your business:
Devote a special section on your website, named for example “This Week Hot Deals” to make it noticeable and clear that these coupons will be updated regularly.
Make sure that your coupons are juxtaposed or linked to related offer in your store, which could prompt additional purchases.
Don’t make it a box- someone who really has a code will work harder to find the entry area, so concealing it behind a button might solve the problem of the conspicuous box.
Tell the customer what happens if they choose to use it or not (what are their possibilities).
Send the promotion to your email list ( only to your subscribers- they will feel awarded)
Advertise coupons on different channels.
Where to promote your coupon promo codes:
Social media: Social media use leads to coupon searches, so use your social profile to raise awareness about your coupon offers. You can distribute your coupon via advertising and on your page as a post or create an app.
Email: Use newsletter or basic template to send coupon offers to your subscribers. It’s a free channel to communicate the offer.
Online store: Your homepage or product pages can be a channel that reminds customers about promotional offers. Homepage banners, sidebar banners and even on your shopping cart checkout page is a great place to promote them.
Independent store: Cooperate with websites which contains all different types of promo codes and coupons to multiplate stores.
Data that may interest you:
96% of people downloading coupons from special websites, where you can find almost every discount offered by almost every store,
92% of people search for coupons on home pages,
91% of people looking through websites of sellers and distributors to find coupons,
85% people are finding coupons by google, 68% on social media,
Countries use the most coupons in eCommerce : USA, Hong Kong, Belgium, Portugal, South Korea, Vietnam, Croatia,
Email compagnies are more effective if they contain a coupon (almost 50% more effective)
70% of people want the companies to send them emails with coupons and that’s how they are shopping online,
People who use coupons report higher overall satisfaction from the shopping experience,
A lot of shoppers say they would not have made a purchase without a coupon first,
People are more likely to spend more with coupons and codes.
Buying with digital promo codes and coupons is the trend that is still relevant and probably will be in the next few years. That is why every online store should at least take into consideration this type of discount, which still has more benefits than drawbacks for both, sellers and buyers. Do you use codes and coupons in your online store?
Sources: http://www.getelastic.com/promo-code-proble/ http://www.vendorseek.com/E-Commerce-Web-Design-Coupons.asp, http://www.practicalecommerce.com/articles/3927-Online-Coupons-Pros-and-Cons, http://www.bizreport.com/2010/06/retailers-coupons-benefit-you-too.html, http://www.marketingprofessor.com/e-commerce/ecommerce-the-real-impact-of-coupon-codes-on-conversion/, http://blog.justuno.com/ecommerce-tips-generic-and-unique-coupon-codes, https://www.bigcommerce.com/ecommerce-answers/what-are-digital-coupons/, http://www.supercellmedia.com/to-coupon-or-not-to-coupon-in-ecommerce/, http://www.forbes.pl/kody-rabatowe-i-wyprzedaze-realny-wplyw-na-sprzedaz,artykuly,195120,1,2.html, https://www.shopify.com/guides/make-your-first-ecommerce-sale/coupon-codes, http://www.veinteractive.com/blog/20140819/promo-codes-how-best-use-ecommerces-necessary-evil, http://mashable.com/2013/01/21/online-coupons-business/