Sales and discounts codes are proven techniques for successfully assisting eCommerce businesses with generating leads and sales – when used correctly. However (geez, there’s always an annoying ‘however’), when discounts are offered without careful consideration, it can potentially damage a brand, its profits and even reduce customer order size.
All the gear, no idea …
Essentially, there should always be a clear strategy in mind before creating and distributing any coupon code. The discount may say 10% off, but its value can be worth a hell of a lot more!
We have outlined five different ways you can best utilise discount codes to attract more targeted customers, effectively boost your sales and avoid doing any harm to your brand.
How To Use Discount Codes To Increase eCommerce Sales
#1 Create a Sense of Urgency
There’s no harm in giving your customers the little oomph they need to press that final ‘purchase’ button.
Think about it – how many times have you scrolled through an online store and loaded your cart with lots of goodies, only to think “I’ll buy it later” … and then never returned? If you’re anything like me, I’m guessing a lot.
Some of the most effective discount codes are the time-sensitive ones, where they offer some type of incentive to act now and buy. To encourage your customers to finalise their transaction, try presenting them with a discount code along with a deadline.
“20% Discount Code: DISCOUNT20
Hurry – offer expires at midnight tonight!”
#2 Retargeting Purposes
Discount codes are great tools to use in digital marketing strategies for enticing new customers onto your website and then retargeting them with future ads.
With the right marketing tools in place, once a potential customer has landed on your eCommerce store you can then hit them with more targeted ads to encourage that ultimate goal of a purchase and turn them into a paying customer.
“10% off for all new customers!
Use Discount Code: NEWBIE10”
#3 Ensure Return Customers & Upsell
Discount codes can be used for nurturing customer relationships and subsequently consumer loyalty. It can be as simple as sending a thank you email offering an existing customer a discount code to use with their next purchase.
This can also be beneficial for online stores who offer recurring subscriptions and want to encourage customers to return to their store.
Furthermore, discount codes can be used to foster a last minute upsell, by providing your customer with an incentive to add that extra item to their cart.
“Buy one dress, get the second half price!”
#4 Exchange for Customer Details
Did you know you could use discount codes in return for consumer actions?
Whether you want your target audience to sign up to your newsletter or enter a competition, you can encourage any consumer action in exchange for a discount code to use on your eCommerce store. This makes for a happy customer AND ensures you get your desired outcome – result!
“10% off your next purchase when you sign up to our newsletter!”
#5 Track Campaign Success
Another great way to utilise discount codes is for measuring the results of your marketing campaigns. By using a different code for each separate campaign you create, you can easier determine which ads are working and which ones aren’t without having to worry about the complicated analytical nonsense (best leave that to the marketing professionals – come check out our smiley faces!).
For example, if you simultaneously have an email campaign running as well as a Facebook campaign, you can create two individual discount codes to better judge which campaign generates the most leads.
Always aim to use codes that are easy to write, remember and are relevant, such as “Easter10” rather than “xFu7nA05”.
If you would like more information on how you can use discount codes to effectively boost your online business, please give our digital team a call today on 07 3367 3155 … 10% discount off one of our services for the first person who calls 😉