In the past, online retailers considered the word ‘coupon,’ to be a huge negative. However, things have changed a lot. Nowadays, coupon codes and discounts are one of the most used strategies the online retailers use to help drive more sales. So why have coupons gone from being the bad guy to being the good guy?
From the shopper’s perspective, promo coupons give you a monetary benefit. From the retailer’s perspective, coupon codes help incentivize potential customers to make the purchase, as well as build brand loyalty.
Here are some of the benefits of running an effective discount promotion:
- Promotions help to increase sales – No matter how much competition an online store has, people like to save money. Coupon code promotions are a great way to incentivize potential customers to take the leap and make a purchase.
- Convert more traffic – Studies have shown that about 98% of first-time visitors do not convert into a sale. This means that 98 out of every 100 people who go to your online store are not going to buy anything. By utilizing promos to your visitors, you will be giving them an opportunity to save some money if they take action and make a purchase right now.
- Keep visitors coming back – When you have discount promos, those who have already visited your store and like what you are selling will be more likely to come back.
Now tat you know the benefits of using a discount promotion for your online store, what type of discount promotion should you run? While there are several different types of promotions that you can use, there are three that are the most common, as well as the most effective.
- Offer a dollar amount discount. This is an easy and straightforward promotion that gives you more control of your profit margins. You can either offer a dollar amount discount or even offer a dollar amount of credit that can be used on their next purchase.
- Offer a percentage-based discount. Similar to the dollar amount discount, the percentage amount discount can be applied to the entire order. This means that the more money a customer spends on your site, the bigger the discount they are going to receive. This is a great way if you need to make space for new products or clear out some of your old, excess inventory.
- Give your customer free shipping. Nobody likes to pay for shipping. This is one of the reasons why Amazon has become an online giant in the e-commerce world. They offer free, extra fast shipping for most of their products (if you are an Amazon Prime member). 73% of online shoppers say that free shipping is the first thing they look at when making a purchase online.
No matter what the promotion is that you decide to use with your online store when done correctly, they can be a huge force in making sales. Just be sure that you are comfortable with whatever the promotion you are running is. If you do this, you will make more sales, increase your profits and grow your store’s following.