When it comes to eCommerce, it may look as if giving away coupons with discount codes could hurt your business instead of improving it, but in reality, it’s actually the opposite. The more you give, the more you receive, simply because people tend to buy more when they feel as if they’re saving money.
You give them one or two codes, and they use them for products they initially wanted to buy, which could prompt them to also buy a product or two they didn’t really want or need, just because getting a sweet discount through coupons put them in a good mood for shopping.
Coupon codes are a very important part of any growth strategy. Learning about using them on your Magento store is not rocket science, but there are still some useful things to keep in mind when it comes to how, when and where to offer them, so let’s take a look!
Discounts for Bundled Items
People love getting bundles, because they always make them feel like they’re saving money and getting more than what they paid for initially. And they really are, but more importantly, so are you.
For example, if you offer a discount coupon code for a bundle consisting of two related products, you will save money on shipping and postage, not to mention an increase in your gross revenue, thanks to a multiple product sale. Also, don’t let the loss in what you earn, per item, fool you – you make up for that by selling more products in the end.
Coupon Discounts for Second Items
Sometimes, eCommerce stores offer coupon-only discounts for purchasing a second item in the same transaction. This is a sure way to get your customers to buy more than one product and therefore increase your gross revenue, as well as your multi-item revenue. It also helps improve customer loyalty.
Short-Term Expiry
Consider adding an expiration date on your coupon codes. The shorter the period, the more customers will be tempted to use it. It’s basic psychology – the moment we realize a sweet deal might slip from our grasps if we’re not quick enough, we start really wanting an item that we never wanted or needed in the first place.
This is a particularly efficient method during holiday periods. Just make sure to promote the deal through email campaigns to targeted customers. Add action-based pop-ups to your site is a good idea as well.
On-Site Actions
This one may seem a bit advanced but it really isn’t, thanks to the fact that Magento allows you to monitor the behavior and movement of your site visitors quickly and almost effortlessly. Coupon rewards that are based on visitors’ on-site actions work by encouraging them to focus on certain parts of your site and you can achieve that by offering codes to returning visitors, to those who spend a certain, predetermined amount of time on your site, or by delivering codes to your customers through a Magento-integrated email service.
Make Use of Segmented Lists
Segmented lists are an extremely useful tool for any eCommerce store and, with Magento, they are not complicated to develop and implement. Email marketing is ranked right behind SEO as the most powerful marketing tool these days, but it will never work unless it involves segmented lists.
First you need to identify users for a certain list, create the list and then come up with an attractive offer using coupon codes. This strategy is a proven sales generation method and you’ll definitely do well if you try it out.
Coupons as Rewards for Surveys
Surveys are another important tool for improving sales on your Magento store. Still, we all know that people generally don’t like bothering with surveys and questionnaires, especially if they seem long and uninteresting. So how do you get people to complete them?
Offer a reward, of course! With a tasty coupon code, your visitors will be more likely to complete your survey, but there is another benefit for you here – you will give out more coupons which will, in turn, generate more sales and, ultimately, more revenue. It’s a win-win not just for you, but for your customers as well.
There are two ways to implement this. You can redirect your visitors to an off-site survey, hosted on one of the many specialized websites, or you can use one of the handy tools that allow customers to answer your questions and get a coupon without leaving your website, all in one session. These tools are developed exclusively for Magento, they are cheap and easy to use, and they are very effective.
Pop-Ups
“Oh no, not those pesky, annoying pop-ups!” – right? But we have some news for you – like everything else online, pop-ups have evolved, and today they represent a sophisticated and powerful marketing tool that greatly improves your conversion rates.
A well-timed, strategically formulated pop-up add or discount coupon offer is actually something your visitors are relying upon, at least subconsciously. No one likes an online store that never offers anything.
However, in order for your pop-up offers to really work, they need to be contextual, meaning they have to involve a relevant offer. They also need to be well-formulated, have attractive visuals, and bedeployed at just the right time.
You should also make sure that they do not come back more than once (i.e. if a customer has already denied an offer). Of course, the offer needs to be real, not virtual or deceptive.
Checkout Coupons
Coupon codes incorporated into the checkout process are a new ecommerce trend. How does this work exactly? Imagine you’re buying a waffle maker. You pick your product, select your payment and shipping method, fill in all the forms and proceed to purchase the product.
Just before completing the purchase, you are offered a coupon code for, say, 25% off toasters, provided you buy one during the current checkout process. It’s an exclusive deal – the same toaster does not normally come with a discount outside of the checkout process.
This has been proven to be a very efficient strategy, increasing sales and the gross revenue of the store. The trick is to offer a solid discount on a related – and cheaper – product. The customer is already spending money at your store, so he or she will be more likely to spend some more, if the offer feels real and convenient.
Tiered Products
This one is a marketing classic. You offer a certain discount for buying two products, and a better discount for three or more. The more products you purchase, the better the deal. Here’s what usually happens: a customer will most likely buy one larger item and then lots of smaller/cheaper ones, in order to meet the requirements for the desired discount. Online sales are all about volume, so, to a certain degree, it doesn’t even matter how much money you’ve earned in a single sale, but how many products you’ve moved.
The bottom line is, coupon codes are a very powerful marketing instrument and one that, when used correctly, can improve your sales significantly. If you’re doubtful about how to use them, check out a number of excellent extensions and apps available for the Magento store or contact your Magento developers, who will know just what to do to make this happen.
