There is always a few times in a year when it’s the festive season where everyone is ready to shop. It is also the time when business owners contemplate whether or not to offer discounts for their online store. You may think that offering discounts may do damage to your sales and profit, that could be true given you are doing it too carelessly.
However, if done in the right way at the right time, offering discounts and coupons will retain your relationship with your customers. When running an online business, the most important thing you want from your customers is their loyalty. Customer loyalty is when the customers pick your brand over the other brands available. There are many reasons why a customer stays loyal to your brand- the products you sell, the reasonable price, the interaction they’ve had, or customer service. One other way to build the loyalty of your customers is through discounts and deals offered by your brand.
Pros of having online discounts and coupons offer:
- Increase customer loyalty
- Increase conversions
- Stock can be moved quickly
- Increase sales goals
What are the types of discounts and coupons you can offer:
There are a few types of offers you can give out to get the attention of your repeat customers and here are a few common ones-
- Percentage-based discount
- Dollar value discount
- Free shipping
- Free gift
- Buy one get one
Percentage-based discount is the most popular and most-liked discount among the customers. Your online store can offer a small number of discounts like 5%, 10% or 15%, a bigger amount like 20% or 25%, or even significant percentages like 50% to 70% discounts for products that are old or slow moving. This is a great way to get those products that have been sitting in your inventory for a long long time.
Dollar value discount
This discount plays tricks on the customer’s minds. By giving your customers a value discount, they will feel like it’s a waste if they are not redeeming this discount. It almost feels as though they have this extra money that they need to spend just to feel like it did not go to waste. Even a discount as low as $10 can tempt potential customers to purchase items from your online store.
Did you know that one of the factors shoppers abandon their online shopping cart is because of shipping fees? Don’t lose on potential sales just because of shipping fees. Offer free shipping to your customers once in a while to get them coming back for your brand. However, don’t just offer it lightly. Get customers to spend a minimum amount on purchase in order to qualify for free shipping. This will also increase sales and avoid cutting your margins.
Who doesn’t love a free gift? Increase your customer value by including a free gift when they purchase something from your online store. It does not have to be an expensive gift, customers will appreciate the little gift regardless. You can give out any product that isn’t moving in your online store as a free gift. This will help introduce the slow moving product to your customers.
Buy one get one
Another discount that is popular among online shoppers is the buy one get one offer. A buy one get one offer can be either a “buy one get one free” or a “buy one get one 50%” offer that will definitely catch the attention of shoppers. This offer does not do damage to your sales margin as it requires the customer to buy an item at its original price while the second item is of a lower price.
When to offer discounts?
Keep in mind that offering too many discounts will damage your brand. Here are some occasions that are fitting to offer discounts to your customers-
Holiday and seasonal offers
Since there are so many holidays and festive season throughout the whole year, it is the best opportunity to spoil your customers with discounts and promo codes. Offer them with relevant discounts especially if your online store has special edition products during festive seasons.
Providing a discount to first-time shoppers of your online store will give a nudge to them to click the check out button that they were hesitant of.
Entice these first-timers to come back again by giving them a discount code or a dollar value discount. This will get them to come back again to make full use of the discount.
Customer loyalty offers
Maintaining a bond and a good relationship with your customers is vital when it comes to securing their loyalty. Why not reward their loyalty by giving them discounts or special offers? If you have a membership program, you can send them a discount code for spending a certain amount of purchase as a reward.
Abandoned cart offers
This is when the free shipping offer comes to rescue. As mentioned above, a lot of times, customers did not proceed to the checkout page because they’re hesitant to pay for shipping. Get them to complete their purchase by offering free shipping to them. This will definitely change their minds.
Discounts and offers work differently for different online businesses. Once you get a clear idea of what discounts to offer at the right time, your online store will be flooded with loyal and returning customers. Discounts and offers can effectively drive more sales to your online business and increase revenues as well. Use them the right way and watch your revenue skyrocket!
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