Don’t Leave Money on the Table: Use Coupons to Drive Business

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Thanks to online retailers like Amazon and Wal-Mart, customers now have dozens of choices when shopping online. These days, consumers have quick access to product information, the ability to compare prices, and read customer reviews all within a couple of clicks. As a result, coupons influence more online purchases now than ever before.

A recent study suggests that 71% of US internet users’ purchase decisions were influenced by coupons and discounts. (CMO Council).

 

From direct mailers, to text messages, and social media, businesses can utilize a variety of channels to provide customers with digital coupon codes.

Some business-savvy marketers might argue that offering discounts can cost you money and devalue a brand. However, this theory typically only proves true when online businesses offer coupons to customers too frequently. Continue reading for a list of key benefits to show how coupons can positively impact your online ecommerce business.

Benefits of Coupons and Putting Them to Work For You

Repeat Business

Studies show that online shoppers are more inclined to offer repeat business if they have a coupon. 91% of coupon redeemers say they will visit a retailer again after being offered a coupon. (HubSpot)

Implementation: Provide customers with a coupon by email or on the order confirmation page after an order has been placed. This coupon can include a discount off a future purchase to help drive return business. A reasonable expiration date should also be included with the coupon to ensure customers don’t forget about the coupon and have enough time to take advantage of the limited time offer.

Brand Loyalty

Coupons can be used to attract new customers that have long been loyal to a competing brand. Offering a coupon for a first-time buyer is a great way to introduce consumers to new products and showcase flagship products, launching a new and potentially enduring relationship between them and the brand.

Implementation: Social media is a great venue for reaching the fans of competing brands. Offer coupons in your social media feeds, and then consider boosting these posts to audiences who are interested in your general product category or rivals.

Conversions

Coupons can help increase conversions. Without question, the bigger the discount, the greater number of conversions. By turning a coupon sale into an on-site “event,” you enhance interactivity and create urgency to purchase. A great user experience on your web store keeps shoppers on your site longer, browsing your product catalog. While browsing, shoppers are likely to purchase more than what the coupon was applicable to, thus driving profits and conversions.

Implementation: Offer flash discounts on-site in coupon code form that can be displayed on homepage banners or product pages. These coupons can be product category specific (“All Sweaters”), product attributes (“All Red Sweaters”), or a calendar event (“Discount on Sweaters this Saturday Only”).

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Lead Generation

Customer data is arguably one of the most important assets to a company. Marketers can leverage customer data to convert leads into transactions.

Implementation: Implement a pop up or newsletter signup block on your home page to entice new customers to sign up for your newsletter by offering a small discount on their first order. Newsletters can also be distributed to potential leads to create awareness of new products and promotions.

Inventory Turnover

Need to make room for new products? Coupons can help increase space for new inventory. If you have a bunch of old or seasonal products that aren’t selling well, you might consider offering a large discount.

Implementation: Offering a discount after a holiday can help free up warehouse space for other products and new inventory for the next season. In fact, many retailers hold clearance sales in July to fund inventory for the year-end holidays.

Blog Traffic

Looking for new ways to drive customers to your blog? Inserting coupon codes in blog posts can increase traffic and train customers to visit your blog regularly and read new content.

Implementation: Associate a coupon with the blog post, which relates to a call to action or product mentioned in the copy.

Re-activate Business

From the lifecycle of a product and budget limitations, customers can become dormant for a variety of reasons. Coupons can be enticing enough to reactivate dormant customers who haven’t purchased within a specific time period. You might also consider offering coupons during an offseason for your business or during a slower time of year to boost sales.

Implementation: Create an email list segment, which gathers all users who have not made a purchase in six months. Send them a “We’ve Missed You!” email with a 15% off coupon code.

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Tip: A 50% Increase in Quantity Is the Same As a 33% Discount. (Convince&Convert) Perhaps you might consider adding more product instead of reducing the price. In other words, customers are likely to opt for receiving 33 percent more of a product than paying less for it.

 

Coupons can offer a variety of benefits to online retailers. Developing a strategic plan and implementing appropriate logistics is key to executing a successful coupon campaign. Use them sparingly and strategic ally when developing your coupon strategy to avoid hurting the value of your brand. Customers who always have a coupon to apply at checkout will be trained to never pay full price for your products or services.

You can implement coupons to your Miva store in just a few simple steps. Our online documentation provides helpful tutorial videos and step-by-step instructions to get your coupons up and running.

Need further assistance? Enroll in Miva’s Managed Account Program (MAP) and your dedicated Account Manager can help get coupons set up today! Learn more about MAP.

About The Author

Katy Ellquist

Katy Ellquist, Miva’s Digital Marketing Strategist, is an accomplished writer, marketer, and social media analyst who has created sophisticated content campaigns for a broad range of professional clients. She brings to Miva a complex understanding of ecommerce trends and techniques, building upon extensive digital agency experience and a prior role as direct liaison to Miva’s top accounts. Katy is a regular contributor to the Miva blog, covering essential ecommerce topics like design & development strategy, site optimization, and omnichannel selling, with the goal of increasing the actionable knowledgebase of the entire Miva community.

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