E-commerce companies have to constantly devise new strategies to keep the shoppers interested in the brand and make the purchase. Coupons, discounts, and promotions are integral to a brand’s sales strategy. Whether the consumer continues to visit your online store depends on the kind of marketing strategies you have created. For example, a meticulously planned coupon marketing strategy will help companies acquire new customers to their fold and encourage existing customers to spend more, resulting in improved revenues. This blog will talk about some of the most popular coupon marketing techniques that will significantly impact the brand’s revenue.
Buy one get one coupon
One of the most exciting coupon marketing techniques marketers applies to their businesses to increase sales of products that are slow moving or to clear out inventories that have been stuck with them for too long is BOGO or buy one get one. Under this coupon discounting method, consumers can get two products at the cost of one. This discounting method enjoys massive success, and brands see a more significant revenue generation because the perceived benefit of BOGO remains high in the minds of the consumers, and a higher number of users try to take advantage of these promotions. The other aspect which makes it a win-win situation for the brands is that compared to a flat 50 percent discount, they can generate more revenue by selling the item at full price. But as is the case with everything, there is a downside to this coupon marketing method. Brands should ensure that they are not losing money in this whole bargain. The idea should always be to make a profit, whether tangible or intangible. So, brands should carefully weigh the pros and cons of the buy one get one technique before promoting it on the coupon websites.
Time-bound sale coupon
For brands to generate the maximum revenue from the coupons they have shared with their customers, they need to create a sense of urgency for them to act. According to various research reports, a time-bound coupon that needs the receiver to act promptly or within a limited time window has shown far greater response rates than coupons, where consumers have much time to decide whether they want to redeem the offer. In addition, time-bound coupons are a great way to convert tentative or uncertain customers to shop for the product and the brand. On the other hand, simply sending the coupons, which gives the customers much time to take action, usually ends up unused, as people wait to act on those promotions and forget about them later. Brands use different discounting methods like flash sales or weekend sales to entice consumers to buy at a special price. Marketers should keep in mind that they should not overdo it and position this whole exercise as a rare event, which will keep consumer enthusiasm high.
Cart abandonment coupon
One of the significant issues e-commerce businesses around the globe face is that of a considerable percentage of cart abandonment by shoppers. Shoppers can abandon their shopping cart for many reasons, like looking for a better discount coupon, checking deals on another website, or leaving to complete the transaction later. Whatever may be the reason, it creates a massive headache for online companies. To get these shoppers to complete the transactions, brands should reach out to the consumers with discount coupons to encourage them to go ahead with the shopping. The cost of acquiring a new customer is very high, and hence marketers should try to hold on to their potential customers in any way. This approach is certainly going to help brands achieve their revenue goals.
Special occasion discount coupon
Brands should design and disseminate discount coupons to their customers around special occasions and holiday seasons. Coupons personalized around birthdays, anniversaries, or special events show great acceptance and result in significant revenue generation. However, brands should be mindful of not overusing coupons throughout the year. If done frequently, customers would understand that this is just a marketing ploy to get more people to shop rather than a genuine effort to appreciate your loyal shoppers.
Minimum shopping coupon
Asking the shoppers to shop for a minimum amount to take advantage of the promotional offers on the products is a sure-shot way for brands to increase the average ticket size and revenue. Moreover, this method entices customers to shop for more than they need to avail the discounts, which they think is a winning proposition. But brands need to design this strategy carefully to keep the conversion rate high, and for that, they need to have a deeper understanding of their consumer’s shopping behavior and purchase patterns.