Who usually does online shopping is familiar with the famous virtual discount coupon.
Used by several companies, coupons play a strategic role, and are often determinant in the purchase decision.
What is the Discount Coupon
The discount coupon used in online retail is nothing more than an alphanumeric code that gives discount on the purchase of products and services.
Also known as a promotional code or promotional coupon, this fairly simple tool has a great persuasive power in the purchase moment.
According to Google, every year, the search for “discount coupons” doubles in its search engine.
Strong market in the United States, according to a PRRI-US survey, 92% of Americans use discount coupons every year in physical and virtual stores.
Why does the discount coupon work?
When a store issues promotional codes, it is offering customers an incentive to buy, which benefits both the customer and the business.
Customers get the products they want for a lower price, and this generates revenue for the company.
One of the most useful things about promotional codes is that they work well with both new and old customers.
According to research conducted by the Center for Neuroeconomics Studies at Claremont Graduate University, these incentives have a direct impact on the purchasing experience.
“Getting a coupon, as hard as it is to believe, is physically shown to be more enjoyable than getting a gift,” said Paul J. Zak, director of the Center.
The study showed that people who received promotional codes had an increase in their levels of oxytocin, a hormone that creates feelings of happiness.
What are the advantages of offering a discount coupon?
The discount coupon has proven itself an effective strategy to improve the results of a business.
Among the main advantages perceived by those who use this feature, the following stand out:
- Attract new customers;
- Please current clients;
- Increase conversions;
- Increase the average ticket;
- Encourage social sharing;
- Create emergency triggers;
- Reverse withdrawals.
The discount coupon offer contributes significantly to one of the main goals of any company: customer loyalty.
A Stitch Labs report found that recurring customers spend an average of 120 percent more over the course of a year.
In addition, your most loyal customers become the biggest advocates of your brand, driving the acquisition of new buyers.
Types of Discount Coupons
There are several types of discounts and offers that you can use. Let’s take a look at some of the more common ones.
Percentage-based discount
A popular way to offer discounts is through percentage discounts.
This can include small incentive percentages like 5% or 10% off, larger discounts to really drive sales like 20% and 25%, or significant percentages like 50%+ to liquidate merchandise that’s old or isn’t moving.
Free Shipping
Shipping costs are one of the main reasons for for shopping cart abandonment.
Offering free shipping is a great way to reduce this occurrence and increase conversions.
Use free shipping discounts in conjunction with a minimum purchase requirement to increase your average order value.
You can also limit this type of discount to specific countries and customer groups (such as members of your loyalty program).
Free Gift
Delivering a gift along with a purchase made can be a great way to provide additional value to the customer.
If used strategically, it also serves to help increase the order value and/or to get rid of the product that is not having good output.
What many stores do is offer a bonus product/service as a gift to customers who purchase something above some value, for example.
How to use Discount Coupon
There are numerous ways to use a discount coupon to attract customers, increase sales and generate loyalty.
Regardless of your area of expertise, you can take advantage of this feature to leverage your business.
Check out some of the most popular options of using the discount coupon.
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Weekly/Monthly discounts
These are traditional sales used to generate conversions. Often, this strategy is used at the end of a month or quarter to increase revenue and hit the sales target.
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Pre-launch
If you are still in the pre-launch stage of your business or perhaps even launching a new product, you can use pre-launch offers to drive traffic and increase interest, attracting and retaining customers.
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Holidays and special dates
Commemorative dates and events such as Black Friday and Cyber Monday, for example, offer a good opportunity to share discounts and relevant offers with customers. Holidays and vacation periods, such as Christmas, school vacations, among others, also create a good reason to launch sales campaigns focusing on lower prices.
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Abandoned cart
A high abandonment cart rate is a serious problem faced by e-commerces. To reverse the situation, sending an email with a discount or other offer if the customer completes the purchase is a powerful tactic to bring these people back.
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Email/newsletter subscription
As you probably already know, creating an email list is extremely important to online retailers. By providing a discount coupon in exchange for the visitor’s email address, you increase your chance of conversion and gain the opportunity to develop a relationship with the customer.
– Step by step to create a newsletter that converts
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Social media advertising
One of the most difficult parts of running an online business is disclosure. Giving visitors and customers an incentive to share your business with their social circles can be an effective and inexpensive way of advertising.
– 5 tips to sell online courses using social media
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Reference
People are much more likely to buy from you if they are indicated by a friend or family member. Use this and take advantage of the offers to encourage referrals. You can choose to give a deal to the person referring, the person being referred, or both.
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First purchase
Offering a special offer or discount coupon for the first purchase of a new visitor can work as the missing push for him to become a customer. Many sites offer a percentage discount on the first purchase or even free shipping.
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Minimum value
An offer based on the total purchase value is an effective sales tactic to encourage customers to spend more by increasing the order value. A strategic way to incorporate this into your online business is to calculate the average value of orders placed in recent months and offer a discount or free shipping on all orders with a cost of 10 to 20% more than the average ticket value.
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Social networks
Offers made exclusively on your social networks can be a great way to retain the customers that accompany you. Offering a discount coupon to your followers on Twitter, for example, creates a reason for new people to follow and subscribe to your online channels.
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Loyalty
Rewarding loyal customers helps build an even stronger bond with your consumer while rewarding those who already spend money on your business. You can easily create a unique discount coupon for specific groups of customers and send them directly via email, for example.
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Exit intent offer
Sometimes all it takes to convert a visitor to a customer is a last-second offer before he leaves your site. An exit intent offer will appear as soon as your visitor is about to close your page, presenting him with a final offer to purchase.
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Retargeted promotions
Retargeted deals are effective because they are only displayed to people who have previously accessed your site. The ads serve as a reminder to come back, and the offer serves as a push to buy.
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Influencers
Make partnership with influential people who have large audiences is a great way to expose your brand and advertise your business. By providing a unique discount coupon to the influencer network, you increase your chances of getting new customers through the partnership.
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Loyalty program
Customers who join your loyalty program deserve a bonus reward. Giving a discount coupon not only rewards those who get involved with your brand, but also gives them more motivation to join the program.
– Why to invest in a Loyalty Customer Program
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Events
If you conduct events, personally or virtually, you can reward participants with discounts or free gifts. These discounts may be granted during or after the event. This helps you continue cultivating relationships with engaged customers and increasing loyalty. In addition, you’ll probably encourage participation in your next event.
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Customer milestones
Milestones are significant dates or events for the client. These milestones can be personal, such as the client’s birthday, or even celebrate the relationship built with the brand, such as the anniversary of the first purchase or date that the person has associated with your loyalty program. Offering an exclusive discount coupon on these dates shows that the company cares and is committed to the consumer.
Why use Discount Coupon in your online course
Discount coupons can be applied to the vast majority of online businesses.
If you start with a clear goal in mind, a firm understanding of the brand, and a willingness to experiment, you’ll be able to use that strategy effectively to achieve your goals, build customer loyalty, and increase your business revenue.
Those who have just created their first online course and are focused on attracting customers can offer a discount coupon for the first twenty enrolled in the course, for example.
If your goal is to retain students, nothing better than creating a promotional code for those who already bought with you.
– 3 practices for retain students
To increase sales, possibilities are numerous. You can offer a discount coupon for those who spend up to X value on your site, indicate a friend who makes a purchase, share your ad on social networks, etc.
Just use your creativity and see how this strategy best fits your business.
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