Online Coupons, Offers, and Discounts are powerful tools to drive conversions because they give
a sense of urgency, are easily measurable, and flexible. They can also be a great way to boost
sales, increase customer loyalty, and increase customer attraction.
When you are thinking of using an offer, you need to consider what type of offer you are going to
give and what the strategy is behind it. There is no exact science to online offers; it takes a lot of
trial and error to determine what works best for your business. When you are creating a campaign
the best thing is to start small, determine what your goals are and measure them.
There are many different types of coupons, offers, and discounts out there. We are going to look
at the nine most popular types of offers that help drive conversion:
1. Percentage Offer
Percentage offers are the most popular form of discounts. This type of offer can help you liquidate
merchants, drive sales or entice purchases. The goal of the campaign will determine the amount of
a percentage offer you should give.
2. Dollar Value Offer
This offer is great to get returning customers. For example, you can give a $25 off coupon to your
customer for the next purchase that you can make for a specific time frame and with a minimum
purchase requirement. This offer does two things it increase your return rate and increases your|
average chart size.
3. Free Shipping
To customers, free shipping is one of the most important offers and is the main reason for cart
abandonment. 50% of customers will abandon their cart if they learn that free shipping is not
offered. For free shipping offers to be effective, you will have to set a minimum order size, and this
will help increase average order size.
4. Free Gift
Gifts are good to use when you are opening a store or if you want to engage customers to
purchase more. Gifts can add value to your brand if done properly. A great example is Victoria
Secret. They offer limited edition free Totes to customers that make a purchase at a certain amount
during a specific time frame. This tactic is a great way to get customers to increase the purchases
to get the gift, increase average order size, and get rid of the old product. Free gifts are also great
for pre-launching a company or products. For a pre-launch you would offer a limited amount of free
products for customers that promote your store on a social media site or some social media sites
depending on the rules your have set.
When you are opening any store the best way to create buzz is by word of mouth. There are many
different offers you can do with social media and customer referrals. We will look at two popular
social media offers. The first is a referral incentive. For this offer, you would give a 5% to 10% off
coupon to customers that share your business on their social media with their fans and followers.
This offer encourages customers to follow you on their social media and purchase your products.
According to Yesmail on Facebook, 55 percent of customers are more likely to purchase a product
recommended by a friend than an ad. Social media customers are more likely to trust a brand and
purchase products from a company that was referred to them by a friend on social media.The
second is promotional referrals. This offer is good when you want to increase your social media
following. For example, your goal is to increase the number of likes on your Facebook page. You
offer a popular product for 50% offer, but the customer must like your Facebook page, like the
image and share it (all share must be from the original post). Once they do, they get a promotion
code through a private message.
Be careful with social media offers you need to ensure that the rules of clear and posted and that
you follow through on the offer if customers do what you have asked of them. If you don’t, then
you can damage your brand and image.
Once the customer has made the initial purchase you can send them an email to thank them for
purchasing the product and let them know of complementary products. Adding in a promotion code
in the email can entice them to be a return shopper. It can also help build a relationship with the
customer and turn them into a loyal customer.
Mobile offers are a smart way to drive traffic and increase conversion. Today’s mobile shoppers are
very strategic. 70% of mobile users will search for an online coupon before purchasing to find the
|best deal and 47% of mobile user want retailers to send them discounts and coupon via app or
text. This is why it is very important to understand your target audience habits (55% of all internet
user will redeem a mobile coupon).
8. Customer Loyalty
Loyal customers are important because they return on a regular basis, refer you to the friends and
family, and are loyal to your brand. You can build a relationship with your loyal customers by
offering exclusive discount offers through a link or by email. You can base your customer loyalty on
returns or number of purchases depending on your goals.
9. Subscription to Newsletter/Email
If your goal is to increase the subscriptions to your email list, because email marketing is very
important for online merchants, give an incentive to get customer emails. Giving an incentive to get
customers emails is beneficial in two ways. First you get their email for future product promotions
and second you can increase your conversion rate. Here is a hypothetical example, let’s say you
are a clothing, merchant and your customer is thinking of purchasing one of your shirts but is not
making the purchase. Then they notice the email subscription at the bottom of the page, and it
says that they can receive 30% off their next purchase if they sign up to our email list. You get their
email and their get 30% off the shirt they want.
Coupons, offers, and discounts are powerful tools but are not for every online business. Coupons
can damage your brand and trust with customers therefore, you need to be careful how you use
them. Make sure you know your brand, set clear goals for your campaign, and experiment by
starting small. You can increase sales, grow customer loyalty, and increase customer attraction by
using online offers strategically.