When the time of promotion of your online e-commerce store comes, there always comes a dilemma whether to provide deals and offers to the end customer or just to slash the prices of the product and get ahead in the marketing or promotion of the product.
Offering coupons and deals on your online e-commerce store can prove to be a powerful weapon when it comes to attracting customers in order to increase your conversions and drive traffic but if used in the incorrect order, it can also result in declined sales, unprofitable gains or even worse, the bounce rate of your website might increase if the customer does not find the deals relevant enough.
In this post, we will be talking about how a marketer can use discounts to play the right hand when it comes to marketing and win the game of increasing conversions by a significant increase in traffic. So without wasting more time, let’s get started with how a marketer can use the coupon marketing method like Mabruqq in an efficient manner.
Choosing the right type of coupons to offer
While promoting your online store you can come across several types of coupons, deals, and offers to offer. So let’s take a look at them one by one:
- Percentage based discounts
These type of discounts are the most popular kinds and is used by the majority of players out there. The discounts are generally categorized into three lucrative segments according to the end goal you want to achieve from your marketing campaigns:
- Small percentage discounts offer
In this segment, percentages can vary from 5-20% and the factor of percentage may depend on the marketer’s intention(whether he want to drive traffic or want to boost sales with a decent profit margin)
- Mid-size discount percentages
If the online store has some old stock that needs to be sold as soon as possible(due to seasonal reasons or end of season trend) then the marketer can attract customers by offering discounts ranging from 50-75% which can easily increase the sales and increase in traffic numbers in a short period of time but with lesser profit margin in the hands of the online store.
(for eg: Season End Offer: Get 60% off on any sweater)
- Dollar value discount on total sales
This type of discount can be conditional on the total value of the sale or even the total cart value. For eg: Get $15 off on Minimum Purchase of $150
This type of offer directly impacts the customer decision-making process as he assumes the discounts not implemented as a waste of an opportunity to save more and ends up buying $200 or more value of products just to get the $30 discounts on the total amount.
While deciding whether to use a percentage based coupon or dollar value discount offers, just remember, if your product value is less than $100 then always go for percentage-based discounts.
- Free shipping offers
Ever wondered, why your customers are abandoning products added in the carts and never actually ordering them? Shipping cost might be the actual reason behind this phenomenon as it tends to increase the cost of an item for the end customers so in order to drive lost traffic to your e-commerce store, waiving that shipping cost could easily result in an increased number of sales.
- Free gift offers
Offering free gifts could really help in selling those unsold items adding to your inventory cost. You can always offer free gifts on the purchase of a minimum total value or cart value or you can easily mix free gift offers with conditional buying offers like-buy any two products and get additional items worth $50 absolutely free
- Discount codes
Offering discount codes is by far the easiest method to increase the sales number significantly.
Discount codes are the text-based set of word(s )which be in an alphabetic order, numerical order, or a mix of both. These kinds of discount codes are entered by the customer during the checkout process to avail a given value of discount deducted from the final cart value.
For eg: Use NIke45 to get flat 45% discount on all Nike sneaker products
- Automatic discounts on purchase
Instead of providing texts or numeric based codes, the online store can directly promote set discounts on the total order value in the cart. By using the automatic discounts methods the online store can benefit in the following ways:
- The whole process of checkout can be shortened thus saving time of customers while buying a product.
- Skipping the entry of discount codes can encourage orders as customers don’t have to leave the checkout page and hunt for discount codes in order to reduce their overall cost of buying the product. All this can result in creating a seamless customer experience thus increasing customer loyalty towards the online store.
Offering discounts and offers is not the guaranteed method to boost sales and drive increased traffic to your e-commerce stores but with a clear goal, a true understanding of the marketable brand, and the position to experiment can help marketers to achieve different end results.
In this post, we got to know how a marketer can increase traffic numbers by offering different types of discounts to customers and attracting lost customers with suitable marketing efforts to re-capture them.