eCommerce Promotion Strategies: How To Use Discounts And Coupons

E-commerce business is a lucrative business only if you implement the best marketing and promotional strategies frequently. You need to allure new customers, retain your existing customers, and for that, you require discount offers and schemes that entice your customers to shop from your site.

Nowadays, mostly all popular e-Commerce sites use discounts and coupons to attract customers and increase sales. But, every business can’t offer big discounts or coupons to their customers while maintaining their company’s profit margin.

Hence, it becomes important to understand an effective promotion strategy for your eCommerce business to use coupons and discounts, efficiently.

- According to Statista, in the U.S., the estimated number of digital coupon users will be 145.3 M by 2021.

- In the U.S., 52% of internet users use digital coupons. 30% of US consumers use the browser to search for a coupon while 30% installed app to manage and receive coupons.

The key reason for people to download mobile app is to get special deals or coupons in the U.S.

[Source: Statista]

Thus, coupon and discount are considered as a proven strategy for e-commerce promotion and you need to know important aspects to make it successful.

Advantages and Disadvantages of Discount and Coupons

- There are several advantages of using discounts and coupons for your online business such as it increases conversations, increases customer acquisition and retention, reduces losses and many others.

- Similarly, its disadvantages include attract the wrong type of customers, reduce profit margin, etc. Therefore, you need a precise strategy to make your marketing campaign successful and gain your desired objectives.

Efficient Way to Use Coupons and Discounts

Identify Your Target Audience

For any successful marketing campaign, identifying the target audience is the major factor.

- Once you know your target audience, you should understand that you want to target any specific segment or the entire audience based on your goal. But, it doesn’t mean that you will not offer a discount to people other than your targeted audience. The offer will be applicable to all customers who approach you to buy your products.

- For this, you can provide an option that only people with specific criteria can get a discount. For instance, in a Grand Circus Show, they offer a special discount to school students and senior citizens only.

Thus, you should identify which segments are more powerful and whom to attract. This is the key factor of your marketing campaign.

Choose Ideal Timing and Planning for Promotion

To gain the benefits of your marketing campaign, you need to make an ideal schedule to promote at the right time. For instance, in the country like the USA, UK, Canada, and European countries people prefer to make shopping during Christmas and therefore, you need to select the time when people rush to buy products having a good offer.

In another way, you can also introduce your offer such as

- A weekend special discount offer

- Flat 15% on every product

- Offer valid for two days only or

- Get a Great 20% Discount — offer only for a One day on Friday.

Thus, you should identify the rush period of customers for shopping.

More Shopping, More Discount

Offer your customers more discounts with their increase in a purchase.

For instance, you will provide

- 5% discount to all customers but 10% for customers make shopping of 50 or more,

- 20% for 500 and more,

- 25% for 1000 and more, etc.

Thus, with the increase in shopping amount, you will offer extra benefits to your customers.

Allure Your Customers with Actions

The majority of consumers always search for the best deals and offer before they make any shopping. Therefore, you need to give your customers something attractive and appealing that helps your customers to reach you.

For instance,

- If you are selling perfumes and announce an offer such as “buy any two brands and get one free” or

- You can say “Buy one, get one free”.

- You can also announce that “First fifty customers get assured gift” or

- Get a free gift voucher on every purchase of about 75$.

Thus, action is taken by the company once the customers accomplish their conditions as per the offer.

Remember, your offer should be prepared by considering your overall business objectives for the promotion and best dealing with your customers.

Clarify Terms and Conditions for Your Ecommerce Promotion

- While introducing any discount offer or coupon, first, you need to prepare terms and conditions that you will apply for your scheme.

- You have to provide a full explanation of your offer and its terms and conditions.

- You need to mention all details, clearly such as,

o The scheme is only applicable to people

o What customer requires availing the offer, and

o Duration of the offer

o Also mention what is inclusive and exclusive in your offer

o Your offer valid for certain brands only and not for all brands

Remember, always mention all points clearly and never try to hide any condition that needs to pay extra for your customers. This will create a worse effect on your business and chances to lose your loyal customers. Mentioning all terms and conditions clearly will enhance the trust of your customers in your brand or products.

Select the Best option for Discount and Coupon Offer

There are several types of discount offers that you can select as per your product, target audience, duration, and other factors. For instance, you can select

- Festival or event-specific discount

- In-app or mobile-only discount

- Season-based discount

- Discount for registered members or employees only

- Discount for college or school students only

- Special discount for followers or subscribers only

Things to Consider

Keep in mind your business goal

For instance,

- If you are making an offer to attract new customers then make an announcement such as “Assured gift for your first order”.

- To increase more sales from your existing customers, you need to announce a special discount offer.

Balance Your Profit and Loss

- Balancing your profit and loss is also equally important. If you are introducing a “Stock Clearance Sale”, you need to keep in mind that you are not offering it by doing loss.

Select Right Media for Promotion

Your website, mobile app, social media, e-mailer are important media for your offer and make it reachable to your target audience. With the right time to introduce an offer, the media you use is equally important. Hence, make an attractive layout with appealing captions and content to attract your audience.

Making successful e-Commerce promotion strategies using discounts and coupons need to identify your target audience and business objectives. You can gain more profit only if you intend to deliver some benefit to your customers also. Connect us for free audit & website optimization.