Incentives like coupons and discounts have the power to increase conversions and loyalty. But marketers need to be careful how they use them.
A prominent coupon box in a checkout experience can trigger a fear of missing out. This can lead to cart abandonment as customers hunt for a valid discount code.
They Create a Sense of Urgency
Coupons and promo codes create a sense of urgency, prompting shoppers to act on a deal that may be gone tomorrow. Marketers can increase conversions by creating a limited window to purchase products or services.
For example, furniture companies often use BOGO deals to liquidate inventory or move product faster.
Using specific coupons for specific customer groups can create a similar sense of urgency. For example, a 10% off discount for college students is a great way to encourage young consumers to buy from your store. Similarly, offering a lifestyle discount for new parents or empty nesters can inspire them to return to your company for future purchases.
Another way to promote urgency is through a countdown clock on your website or social media page. For example, you can offer a 15% discount for subscribers who place an order within the first 12 hours of your BOGO sale. This time-limited offer is a proven conversion driver and can be promoted via email, website, or social media.
These deals are a great way to boost sales and encourage people to buy more than they initially planned.
While some shoppers may dismiss the idea of a coupon as a waste of money, others are more likely to value it.
They Make the Process Easier
Coupons and promo codes are letters and numbers that customers can enter at checkout to save money on their orders. E-commerce retailers use them to build loyalty with existing customers and attract new ones. A Castlery promo code also serves as a powerful way to convert exit intent offers (where a customer is leaving your site) into positive actions like purchasing, subscribing, or following you. Discounts can be fixed amount or percentage-based and can apply to an entire order or specific products or categories.
They Build Trust
A coupon can be a powerful way to build trust with new and existing customers. When used strategically, it can increase your customer base and help you become less reliant on discounts for long-term profitability.
In addition to using coupons for customer acquisition, they can be used to reward loyal customers and celebrate holidays or milestones with your audience. This is especially true for businesses that rely on email for communication with their customers.
Using coupons as an exit intent offer can help turn people about to leave your website into buyers by offering them something to encourage them to stay and shop more, like a gift or a discount code for the next visit. This type of personalized message is more likely to perform well than general messaging, and it can be a great way to increase your customer base without spending as much on marketing.
They Increase Conversions
Coupons can be an effective way to encourage new customers to convert to your site. They can help increase conversions for any step of your conversion funnel, from click-through on your homepage to adding items to your cart and then checkout. However, if misused, they can backfire and decrease your conversion rates rather than improve them.
To maximize the impact of your coupons, make sure you consider your goals and target audience. For example, if you’re looking to attract more social media followers, it might be best to include channel-specific coupons that can only be found on your Facebook page. Alternatively, if you want to convert more of your email subscribers, sending them re-engagement offers with discount codes in their inboxes or through exit intent popups might be a good idea.
As more and more customers use mobile devices to shop, it’s also vital that you consider a multi-channel approach to your coupon marketing. Text messaging is a powerful tool for building loyalty, and offering discounts to those who sign up for your SMS list can be a great way to grow your customer base and increase engagement with your brand.
Whether you’re using email, social media, or exit intent popups to promote your coupon campaigns, you must take the time to survey your customers and ask the right questions to get the most accurate and valuable data. This data will better understand your customer base and how to optimize your coupon strategy best.
Alternatively, consider incorporating custom gifts into your promotions. You can provide these gifts to customers who share your content or complete a survey. This will make your customers happy and encourage them to spread the word about your brand. This will ultimately generate more sales and let you know the best marketing campaign.
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