Research shows that 96% of shoppers have used a coupon in the last three months. Getting a great deal has always been a priority for consumers, and thanks to COVID-19-related boosts in online shopping, which resulted in an additional $174.87 billion in e-commerce revenue in 2020, digital coupons are more popular than ever.
Your customers want to feel like they are getting a great deal, and using digital coupons as part of your marketing plan is an effective way to accomplish that - giving them an extra nudge to make a purchase, whilst making them feel like they are winning.
Even a couple of dollar’s difference or an offer of free shipping can mean that a consumer chooses your Shopify store over a competitor’s. It can also encourage them to add a few more items to their cart that they otherwise wouldn’t have.
The great thing about using digital coupons for your Shopify store is that they can be placed virtually anywhere - in digital ads, emails, magazines, on social media, in mailers, or made available via popular online coupon sites. They can also assist you in tracking the effectiveness of your campaigns; by using a specific code or coupon, you can get a much better idea of a particular campaign’s reach.
Effective coupon strategies for your Shopify business
Utilising coupons can be very advantageous, from introducing new customers to your product or Shopify store to getting rid of inventory that’s been sitting in your warehouse a little too long. But, used incorrectly, they can negatively impact your profits and leave you struggling to regain the revenue you need. As a Shopify business owner, it’s imperative to implement an effective digital coupon strategy to help bring in more business.
Here are some top tips for successfully using digital coupons on your Shopify store.
1. Time it right
Timing your coupons strategically can make a big difference to the end result. You may opt to send them out as part of a normal sales cycle, to help drum up some business during a slow period, or as part of a promotion. For example, an early-riser special could attract early morning visitors when the activity in your store is usually a bit slower. Consider the specific needs of your business and what you are trying to accomplish when deciding on the timing of a coupon launch. Are you wanting to use coupons to drive more business to your store at a particular time of the year? Are you approaching a known slow period and want to reinforce your business as you move through it? Do you want to tempt customers away from your competitors? Choose your timing wisely and ensure it’s in line with your desired outcome.
2. Marketing your coupon for maximum reach
As previously mentioned, there are a great number of ways to put your digital coupons in the virtual hands of your potential customers. These include:
Listing your coupon on popular online coupon sites for maximum exposure
Placing a coupon code for online shoppers on social media - or ask that they show or mention the code in-store for the same discount
Emailing out the coupon or code - as well as offering a discount via other channels for anyone who subscribes to your email list
Placing your coupons in magazines that compliment your brand
Sending out a postal mailer that highlights a new promotion or special offer - this is a great way to bring in new customers from a particular neighbourhood or geographical area
Add a coupon code to your digital advertising
You could get even more creative with getting your promo codes out there, by collaborating with online influencers, offering coupon codes for customers who complete a survey, or by sending a coupon out with any sold items, to encourage repeat business. The opportunities are endless!
3. Set some limitations
Customers love coupons, but it’s important to make sure that they don’t overuse them, especially if it would be detrimental to your business. You may need to consider setting limitations such as:
The number of times one customer can redeem a digital coupon code
The brands a coupon can be used for
The times of day a coupon can be redeemed (i.e. excluding peak hour trading)
The total discount a shopper can receive with the coupon
Setting such limitations can protect your business whilst still attracting the customers and making them feel like they are getting a great deal.
4. Select the right app
On Shopify, you have many options when it comes to putting coupons out via apps. Some of the more popular ones include:
It’s important to choose the app that best fits the type of discount you are offering. For example, if students already represent the majority of your target audience, you may decide not to offer a student discount. On the other hand, you might want to entice more of them in.
5. Choose the right type of coupon
As you create your Shopify coupon plan, be sure to choose the coupon type that works best for your business. There are many different types, all of which feature their own advantages. For example, you could:
Offer a dollar amount discount based on a purchase threshold (i.e. $10 off on $30 spent)
Offer a flat percentage discount
Offer discounts on selected products only
Issue a complimentary item with purchases over a certain dollar amount
Provide the option for free shipping
Many coupon offers stipulate that consumers reach a set threshold amount before they receive any discounts. This can entice customers to reach that amount, even if they didn’t originally intend to spend quite so much.
Digital coupons can be an extremely effective way to boost sales through your Shopify store, but it’s important that they are well-considered to best suit the needs of your business. Also, make sure that you set an expiration date to create a sense of urgency in your shoppers!
Bio:Denise Langenegger is part of the team at Instasize– a content creating tool kit for anyone editing photos and online content on mobile.