Coupon codes are an effective way to attract new customers, and keep the old ones coming back. They give the customers an incentive to continue shopping with you, since, obviously, you appreciate their business. Coupon code discounts can give a great boost to your on-line sales, but you have to know how to use them properly, and how to fit them into your overall strategy. Becoming a low-price leader rarely works for any business.
Coupon code discount types
There are different types of discounts, most popular of them being instant discount. This discount is offered on complete purchases, and is a great way to limit shopping card abandonment rates. Make sure to set a minimum order number so that the customer needs to qualify for the discount, and craft a copy that reads ‘Get 10% off all your purchases above $200’, or ‘Save $20 on total order over $100’. This gives the customer an incentive to spend more, and also increases your average order value, so you’re hitting two birds with one stone!
Another popular type of discount is free shipping. Customers are getting more used to the idea that you are willing to facilitate their purchase, and some have grown accustomed to this kind of discount. Oblige them. Run a coupon code discount that tells your customers that you will ship to them at no extra cost (and sometimes even cover the return, especially if they are purchasing a high-value product that has a warranty). This works great, and customers are more willing to spend their dollars with you if their shipping fees don’t amount to their total purchase. In any case, it is easier for you as a seller to negotiate a deal with the shipping company, than for the customer to get any sort of discount from them.
Other types of discounts you come across more rarely, but some businesses find a use for them. Consider sending a coupon code discount to your customer after the fact, when they’ve already spent their money with you, and guarantee them a 15% discount on their next purchase. They will be more likely to come back. Also, think about setting up a referral program. Your loyal customer just might have some friends out there that can become your next purchaser. Give them both an incentive to go that extra mile, and award the referrals with a discount.
Announcing your discounts
After you’ve created a coupon code discount make sure your customers, and people that might become your customers, know about it. First thing’s first, announce it to your subscribers in an e-mail blast. Hopefully, you ask contact information from your visitors as soon as they land on your page. If not, it is a great way to make use of a subscription discount. Have them give you their contact info in exchange for a $ 5 discount on their first purchase! This is a great way to drive customer acquisition. Also, partner up with some coupon code websites to drive up the visibility of your discounts. Keep in mind customers that come your way via those sites do not convert easily into brand followers, but you are guaranteed to see some extra traffic. Announce coupons on your webpage too, as well as Facebook account and Twitter. Use a hash-tag to indicate what kind of discount it is.
If a discount applies to specific product categories, make sure you state that. Running discounts only on some of your products is a great way to get rid of excess inventory. Also, set expiry dates on every one of your coupon code campaigns to create a sense of uniqueness and urgency, and to prompt your customers to act fast!
Coupon code discounts are not without their perils, however. Think long and hard how to properly set them up. If they are not consistent with your other business plans you run the risk of diminish your own value, and may end up scrambling to meet your sales goals. If in doubt, always consult with a specialist, to avoid damaging your business.