Should your online store utilize coupons? Some proponents and proprietors of online shops will say there is no need, since the shop can simply have a sale that will essentially do the same thing as a coupon. However, just because it’s possible to change prices doesn’t mean that a coupon is a bad idea. In fact, many out there know a psychological factor goes into coupons. When people have a coupon that they feel will give them a special deal, then they are often more likely to use it.
What Types of Coupons Should Companies Use?
Since every business is unique, different companies will have success with different types of coupons. Before implementing any coupon, it is a good idea to consider how it will affect the business and whether it is a good idea or not. The following are some of the most common types of coupons available, and some that you might want to consider using for your online shop.
- Free Shipping – Many companies have free shipping for their goods even without the addition of a coupon. However, some companies are not able to afford this for all of their goods. In those cases, offering free shipping when making a purchase over a certain dollar amount is a great way to provide value to a customer and to entice the customer to purchase more than he or she normally might purchase. For example, if you have free shipping for orders over $50, the buyer might add an extra $10 item to the current $40 purchase just to hit the free shipping mark.
- Percentage Off – Offering a percentage off the next order is a great coupon to make people want to come back and shop at your store. If you have an expiration date on the coupon, it can work even better to get them buying sooner.
- Dollar Amount Off – This works similarly to the percentage off coupon. However, you will offer a flat dollar amount off an order. For example, if could be $5 off the next order. It is also possible to place a dollar restriction to the coupon, such as $10 off the next order of $100 or more.
- Buy Two, Get One – Everyone knows the buy X, get Y form of coupon, and it is very popular for many different types of businesses. Many feel that testing this coupon out on a small scale on a couple of different product categories is a good way to see just how well it might work for the business.
- Loyalty Coupons – Customers who are loyal to the business feel like they deserve a bit of a discount, and they are right. By offering loyalty coupons for the best customers, it is possible to keep those customers coming back for more. Even if the customer is not a regular, but they’ve bought in the past, it is a good idea to send out these coupons in an email. It can refresh their memory about your company.
Consider some of the other times where you can create some special coupons, such as around the holidays. These types of coupons can work well for just about any holiday. Some special prelaunch coupons can work well too, and they can help to get people talking about a product before it even hits the shelves.
After the Coupon
After using the coupon for your ecommerce site, you have to make sure you track it to see how well it did and whether it helped to increase sales. You can take the information you glean from your coupon work and then rework the coupon into a different deal and try a different approach. If it worked well, you can keep it and use a similar offer in the future.
Resource: http://blog.bigcommerce.com/to-coupon-or-not-to-coupon-for-your-online-store/