When you have an online business, be it a store, an e-commerce platform or another type of business, such as models like Spotify, getting people to end up acquiring something becomes vital. Unlike traditional businesses, when you have an online business model, you have to try to motivate the action as quickly as possible to the clients. And this is where the discount coupons come into play.
What kind of discount coupons are there?
Nowadays, there are different modalities to use. Next, I mention the most common:
- Discount coupons: Offer people a discount code, so they can introduce it when buying something.
- Category coupons: They are discount coupons that are limited, only to a category type of products or services.
- 2 × 1 Coupons: Discount coupons that give you the possibility of receiving another product or service, but paying only one.
- Thematic coupons: Discount coupons offered at certain times, for example during the holiday season.
- Referral coupons: These are discount coupons you receive for being referred by someone. For example, Uber in many countries generates these coupons and discounts, so that their users invite friends.
- Future purchase coupons: These are coupons obtained when making a purchase, but with a discount for future purchases.
There are other varieties of discount coupons, but I have tried to mention the most important ones.
What are the benefits of using discount coupons?
Obviously there are many benefits but from my point of view for online business there are two very important benefits:
- Increase sales: Using discount coupons can have a direct impact on sales and even on the value of the average customer ticket.
- Decrease cart abandonment: Obviously it will help us to avoid people abandoning their shopping cart. People came to know (or discovered) the discount and that motivates the purchase.
When to use discount coupons as an online promotion strategy?
While I spoke earlier about when and how to use discounts, in the online world there are different times, although my advice is to use them mainly in 3 situations.
- Attraction phase: Ideal to take advantage of the use of discount coupons, to attract people to a company or business.
- Decision Phase: there is no doubt that online discount coupons are ideal to give that push that the customer may need to make a purchase.
- Loyalty Phase: Do not forget also the importance of offering online discount coupons to customers who are already loyal to us.
As this article tries to have a focus on the topic of online business, online stores or e-commerce platforms, then I want to share with you some good options to share these discount coupons.
- Social Networks: You can take advantage of creating a discount on Facebook, even investing in Facebook Ads to promote a discount code or even a Landing Page for people to leave their data in exchange for one.
- Discount platform: There are many websites and discount platforms. For example, thanks to one of them, I got a TubeBuddy license for life, for my Youtube channel (I love this tool)
- eMail Marketing: You can use eMail Marketing actions to reach your database, either from leads or customers, with your discount coupons.
- Website: If you already have your own website, what better place to have discount coupons than in this space. Ideal even if you get people to leave your data in exchange for one.
- Offline Media: Also use offline media, such as newspapers, magazines or others, to show your discount coupons and have people use them online.
What are the risks when using discount coupons?
As I always say, you have to be very careful of how the use of discount coupons is used, although from the online point of view, the risks decrease. Why?
Something that I always explain to people who sell online, is that the product they are selling through the internet, has many fixed costs less than selling them offline. For example, that product may not have in its cost structure the rent of a store, the payment of electricity, water, air conditioning, nor pay customer service or sales and many others. In summary, if your business model is online, your product has a cost structure, much lower than the same product that is sold offline.
However, you have to keep in mind and take care of the following dangers:
- Analyze well the possible demand: Offering discount coupons can generate that suddenly many people will want to buy you. You have to have the ability to meet that demand.
- Analyze the costs well: Offer a discount and that you buy many people or that you buy only 2, could generate losses. Be careful how you plan your strategy.
- Danger of attracting non-ideal public: While discount coupons can attract many people who would be your ideal customers, many people will also fall who only look for offers or low prices, who can then never buy anything again … until the next discount.