Discounts and coupons are a great way to boost sales and to attract new customers. One reason that people prefer to offer discount codes rather than purely reducing the sale price is that coupon codes offer you greater flexibility in how you apply them.
Also, different types of discounts can create a sense of urgency and you can easily measure their impact. There are a number of ways that you can use discounts or coupons on your ecommerce website.
Here are 7 popular types of discounts and coupons:
1. Money off
You can offer an amount off. For example “$10 off your next purchase”
2. Percentage off
You can offer a percentage off. For example “25% off your next order”
3. Free Shipping
If selling physical products free shipping is one of the most powerful incentives for potential buyers. Here are a few facts about why free shipping is such an important promotion for sellers.
- 30% of shoppers spend more per order when free shipping is included.
- 85% of consumers rate Free Shipping as the No.1 purchase incentive
- 61% of consumers will cancel their order if free shipping is not offered
And if you don’t offer your buyer what they want, there is always the danger that someone else will offer them free shipping. 47% of all online orders include free shipping.
You can sometimes reward your loyal following of fans and customers by giving them a special coupon with a significant discount as a thank you.
This strategy works well if they then promote the exclusive coupon to their network of friends and followers and they’ll also feel special because they’re part of a select group.
5. Exclusive Discount
You can keep discounts private and exclusive to specific fans by sharing a link to your discounted product. Another benefit of exclusive discounts is that this can make the recipient feel really special.
If you are launching a new product, you can promote it by giving a limited quantity away or a sell a limited number at a discount, for example, your first 10 customers get it at 50% off.
With Selz, you do this by setting a quantity for a discount. TO learn more about this strategy, check out this article about penetration pricing.
7. Upsell and Cross Sell Discounts
You can give customers an incentive to buy additional products or complementary products by giving them a coupon code in an email following their initial order.
There are two ways to set this up.
First, you can link your Selz account to MailChimp or AWeber. You then set up an autoresponder that automatically sends customers a thank you email which includes the discount code.
A more simple alternative is to customize the email that is automatically sent to customers when they order. You can easily add a discount code your customer can use on their next order.
Other things to keep in mind
- Keep your offer simple. The simpler the offer, the easier it is to explain and the less decision making your customer has to do before they act on it.
- Make the offer worthwhile and something of value. If you’re selling a product for $100, don’t offer a discount of $2.50 as it’s not going to cut it and you’ll end up disappointed.
- Creating a coupon code. You can create a simple coupon code yourself, for example, “FreeShip” for free shipping using Selz. Alternatively, you can get the Selz platform to generate a code which will look something like this “4V3QDHDO”.
- Remember to promote your coupons. I know that this sounds obvious, but if your fans and customers don’t know about your coupon code, they can’t use it. So include it in emails, post it to your Twitter and Facebook page, and you can also advertise it on your website or blog.
Creating Discounts and Coupons on Selz
Find how easy it is to create your own coupon codes and discounts on Selz with these step by step instructions.
Learn which discounts work best for you and your audience and crunch the numbers. Test different discounts and implementations to see which discounts have the most appeal for your customers.