Is your E-Store Leveraging the Right Type of Coupon for Enhanced Conversions?
While using coupons seems to be all the rage in the world of online retail, it is important to note that not all types of coupons will work for all kinds of e-stores. Before you settle on a single strategy, it is important for your store to try out a few different kinds to see what works best for you. Most importantly, it is critical that you take a good look at your profit margins so that you are able come up with viable and yet, exciting offers for your customers.
After all, the objective of this marketing strategy is to eventually increase your bottom lines. Here are a few different types of coupons you may want to introduce for your online store-
This is a rather popular option for vendors as well as customers. Shipping is often looked at one of the biggest pain points among online shoppers. Statistics show that 44% of the cards are abandoned due to shipping fees. Using a coupon to address this issue just makes sense. If you are concerned about paying too much shipping by yourself or if your website sells larger items and picking up the shipping tab is working against your margins, you can offer condition based free shipping that limits the order to specific amounts. By introducing free shopping on orders over a specific amount is an effective way to increase the size of your orders.
Another popular type of coupon you can consider is to offer a flat rupee amount off on an order total. For instance, offers such as “INR 500 off on your next order” tend to convert best if the average order total on your website is less than INR 3000.
If your average order total is above INR 3000, coupons such as “10% off on your next order” work wonders. This is because consumers tend not to perceive too much value for a percentage discount for orders of lower values.
Minimum Purchase Coupons
If you are insecure about giving away discounts to consumers that tend to have lower than average billings, it is best to ease into the world of coupons by making offers such as “INR 500 off on your next purchase above INR 3000”. Such coupons act as a security blanket which subsequently guarantees you a minimum profit. After some testing, you will be able to use the minimum purchase amount to attract customers into adding more items into their shopping cards. However, it is extremely critical that you do not get carried away with this strategy. It is ideal to work around your average order total as the minimum shopping requirement and then combine it with a discount amount that you can afford.
Buy A and Get B
This strategy is another effective way to venture into the couponing business. This strategy too, allows you to ensure a certain order total before you offer your customers a discount. Whether you are offering a “Buy 2 get 50% off on 3rd Item” or a “Buy 1 Get 1 Free” coupon, pricing of the items is most critical. Before you go all out on such an offer, it is ideal to test it on specific product categories.
In addition to this, you may also want to try out disseminating loyalty coupons to customers that shop on your website regularly. For those who are wary about this strategy but don’t want to miss the bus to high conversion rates, offering daily coupons that are good only for a single day is a great way to venture into this strategy while limiting your exposure. Offering holiday based deals, pre-launch coupons or using your social media platforms to share special coupons is also a great way to increase conversion rates without having the discounts eat into your margins.