14 ways to use offers, coupons, and discounts to generate profits and customer loyalty
Offers, coupons, and discounts. There always comes a time when most traders have to face the difficult decision of whether or not to offer discounts. When the time is right and what would be the appropriate amount to discount.
Offering a discount in your online store can be a powerful weapon in your conversion arsenal. You can use them repeatedly, but it would mean significant damage to your brand or even worse. It would become an unprofitable strategy.
In this post, we will review some of the pros. Cons of offering these types of offers in your online store. Taking as an example some of the most popular ways to use discounts to generate conversions.Of course, how to use them in the right way. More effective
Note: For the purpose of this blog post and in order to keep things simple. We will refer to coupons and discounts in general as offers.
The pros and cons of offers in an online store
Before jumping directly into the different ways you can effectively use these offers. How they can help you increase customer loyalty. Your acquisitions, let’s first look at some of the pros and cons of using these offers in your online store:
Quick and easy to implement
Easy to trace
Decrease profit margins
Possible damage to the brand
Decrease conversions outside the sales period if visitors only expect offers
They have a tendency to drive occasional buyers (not loyal)
The tendency to reduce the average size of orders
Who are the offers for?
As we have mentioned previously, offers in online stores can be an effective tool not only for the acquisition of customers, but also to generate loyalty. However, it is important to consider a brand strategy before starting to offer discounts.
If you want to position yourself as a strong brand or if you have thin profit margins, you may want to consider sticking to offers that provoke consumer loyalty instead of weekly sales. On the other hand, if you have healthy margins, notable discounts and daily/weekly sales may be the best way to reach the goal.
In the end, you need to consider the offers and types of offers that will shape your brand’s strategy. However, building an online business usually involves a lot of experimentation to understand what works best. The most successful approach is to choose an objective for each campaign and offer, start small and measure the results.
Types of offers
There are certain types of discounts and offers you can use. Let’s see the most common:
Percentage Discount –
The most popular way to offer discounts is through a percentage based on discounts. This can include a small percentage as an incentive, ranging from 5% to 10% less, or large discounts that will actually generate sales as 20% or 25%, or huge percentages as 50% for merchandise liquidations per season.
Shipping free – shipping costs are often cited as the main reason for abandoning a shopping cart. Offering free shipping is an excellent way to mitigate this and increase conversions in your store. They are used in a minimum order and help increase the average order.
Free product – Attaching a free product at each purchase can be an excellent way to provide additional value to the customer. If used strategically, you can increase the average of orders and/or move a stagnant product into inventory.
When and how to use these offers
There are hundreds of ways to use sales, offers, and discounts to conduct purchases by the customer, as well as conversions. Let’s see some of the most popular with an example of each:
1. Weekly / monthly offers that generate sales and profits as a goal –
These are traditional sales used to drive an increase in sales. Many times the offers are made at the end of the month or every three months to increase profits and meet the objectives or projections.
Example: Memebox makes weekly sales as well as promotions with monthly codes.
2. Pre-launch offers –
If your business is in the pre-launch stage or you may be launching a new product, you can pre-launch offers to help drive traffic and a little interest.
Example: Harry’s, an online store of savings products, uses this method with great success. They offered free products in exchange for sharing your site. They used this tactic and type of offer and obtained 100,000 subscribers without having launched their store.
3. Offers for celebrations –
Black Friday, Christmas and New Year are great celebrations, but the whole year is full of celebrations that you can use to increase profits with offers.
Example: Julep regularly uses not only these celebrations, but the seasons to promote offers to its visitors and past clients.
4. Offers for abandoned carts –
With about 70% of people abandoning their carts, abandoned cart mail offers a powerful tactic for those people to return. Shopify has an abandoned cart recovery function built for those people who have “Professional” or “Unlimited” plans. Those who do not have these plans or want more personalization and analytics should review Klaviyo.
Example: Birchbox, a monthly messaging service sends emails from abandoned carts with a 20% discount after 24 hours. This provides visitors with a reminder and incentive to return and complete their subscription.
5. Offers by email subscription/newsletter –
As you probably know, building a list of emails is extremely important for online sellers. By providing an offer in exchange for an email address, you not only increase the chances of generating a conversion, but you also get an email, which gives you the opportunity to launch new products and offer offers in the future.
Example: DODOCase, a supplier of iPad covers, offers a 10% discount on your purchase only if you subscribe. To implement your own popup email with an offer, check out the Shopify Pop-Up Windows app.
6. Offers to link, follow and share content in social networks –
One of the most difficult parts of making a virtual store is to obtain credibility. By providing visitors and customers with an incentive to share your store with their followers, you are generating an effective way to create word of mouth advertising.
Example: Bombay Hair Extensions uses the Shopify Coupon Pop app to offer visitors a 5% discount on their purchase in exchange for sharing their online store.
7. Offers by reference –
People often tend to buy by references to a friend or relative. Use this as an advantage and offer users shares that they can share. You can choose to provide a deal with the person who is going to make the reference, the person who is going to make the comment or both.
Example: Once again, DODOcase provides an incentive to keep your customers happy and able to share their purchases with their friends, as well as offering those people discounts on their first purchase.
Check the Shopify Forewards or ReferralCandy app for a quick and effective referral campaign for your online store.
8. First purchase offer –
Providing a first purchase offer may be that opportunity for a new customer to become a regular customer.
Example: Clearly Contacts provides a 10% discount to new visitors and free shipping.
9. Offer by size/volume of the cart –
An offer based on the total value of a shopping cart is an effective sales tactic that invites customers to spend more, increasing the average size of the order. A strategic way to incorporate this in your virtual store is to calculate the average value of an order in the months prior to the offer, to later offer a discount or free shipping that equals 10-20% of the average of your order.
Example: The popular online seller Nasty Gal offers free shipping on orders over $ 75.
10. Exclusive social offers –
Exclusive offers on your social networks can be a good way to build a strong relationship with those who follow you and provide other people with a reason to follow you or subscribe to your social channels.
Example: Sephora occasionally provides specific offers to social channels. In an example below, give Facebook fans a free gift for any order over $ 25.
11. Offers for loyal customers –
Rewarding customer loyalty can help build a stronger bond while providing discounts to customers who are already spending money in the store. It can be as simple as sending emails to the best customers with a discount or credit. You can use an app like Klaviyo that automatically sends offers by mail to those who make a certain number of purchases in your store or implement a loyalty program like LoyaltyLion.
Example: Finch Goods Co. uses the Shopify LoyaltyLion app to reward its best customers with a point system that can then be redeemed for in-store credit.
12. Offer by the intention of exit –
Sometimes all you need to convert a visitor into a client is an offer that appears seconds before they leave. An offer for exit intention will come out just when the visitor is about to leave the site or close the tab, presenting a final offer of purchase.
Example: The company Green Mountain Mustard uses the Shopify Picreel Exit Popup app to offer people about to leave a 10% discount.
13. Target offer –
These offers are effective because they are only aimed at people who have previously visited your site and already know who you are. It is a reminder that they can return and they will be offered an offer on their purchase. Check Propel Ads and AdRoll Retargeting to start with these types of offers.
Example: Once again DODOcase appears as an example, since they use the offers effectively throughout the purchase cycle, with the aim of converting visitors into customers. In this case, DODOcase redirects visitors to their Facebook page and uses Google Adwords with retargeting to grant visitors a 20% discount to return and make the purchase.
14. Influence offers (Bloggers, Celebrities, etc.) –
Partnering with influential people who have large audiences is a good way to increase your brand’s exposure. By offering an exclusive offer to the network of people with influence, you are more likely to turn your fans into customers.
Example: Terrain partnered with popular bloggers to launch their new online store. To invite people to click on their blog posts and increase conversions, Terrain provides bloggers with unique offer codes for their audience. These codes also allow you to monitor and track your offers, to know which bloggers are the most effective for future campaigns.
What makes an offer in a great offer?
The following recommendations will help you create offers that will help you get customers and conversions:
Keep the message and the offer simple.
If you are using a code that needs to be entered in the purchase process, keep it short and easy to remember.
A good offer must provide real value to its consumers as well as help achieve goals.
Make a landing page dedicated to your offer. If your offer only applies to a select number of products, create a specific collection to make the visit easier.
Make sure to make clear how good your offer is. Is it automatic? Does it really reflect a change in price? Is a code needed at the time of the purchase process?
Be very clear with your restrictions, but also try to keep them to a minimum.
Always add an expiration date. Not only will it make the campaign easier to measure, but it will create a sense of urgency for your visitors.
Offers and discounts are not good for all online business, but with a clear goal, a firm understanding of the brand and a little experimentation can be used effectively to meet the objectives, build customer loyalty and increase the revenue of the virtual store.
Tell us in the comments what offers you have implemented, which ones have worked best for your virtual store and the best channels to promote your offers.