Coupons continue to gain popularity as online promotional tools. In fact, these apps work for nearly every e-retailer. However, there is a broad variety of coupons, which ranges from feel-good perks to loyalty rewards. Below are a few uses of discounts that have proved successful for online retailers.
Buy one, get one free offer is a great way to encourage online shoppers to refer friends to your brand. For example, shoppers are more likely to choose a restaurant that offers free meal over a competitor that doesn’t provide promotional products. That way, you encourage repeat purchases and attract new customers.
An Incentive to Provide Feedback
Customer feedback is a valuable marketing tool for e-retailers. Online vendors such as Aldi.us are now using coupons to encourage customers to respond to issues concerning their products. Their feedback can either be positive or negative. Either way, it helps in strategizing and making informed decisions.
Build Brand Loyalty
Sometimes online vendors need to align themselves with the values of their customers to build brand loyalty. Perhaps your brand is competing with five brands that have the same features. However, it’s easier to gain a competitive advantage by being a little fuzzy and warm to your target audience. Your fan base will appreciate as long you are genuine. For example, your brand could demonstrate how it values the safety of the end user. That’s a great way to build brand loyalty and drive sales.
Reward Loyal Customers with Coupons
Creating a loyalty program or offering a bonus discount to your loyal customers have proven successful in increasing sales. Offering discounts on your loyal customer’s next purchase will encourage them to come back to you. You could send welcome newsletters or emails to anyone who bought clothes at your online store and offer them a 25-30% discount on their next purchase. That’s an excellent way to engage your customers and boost their buying mood.
Gain a Competitive Advantage
Offering a special coupon to your target customers might lower the price of your products. That’s a great way to get those extra customers that are stuck to your competitors. However, you might need to up your game if your competitors are offering coupons for their online products. However, remember that brand integrity and premium quality is equally critical to the success of your brand. Avoid getting into a price war if you want your brand to stay relevant.
Use Coupons to Provide Exclusivity and Urgency
There is a perceived quality for your brand when you keep the price of your products high. You can use exclusive discounts to reward your loyal customers for their loyalty. For example, you can have different coupons for your email subscribers and social media followers. Moreover, you can give discounts through your brand influencers as an incentive to outreach your potential customers. However, note that coupons work better only when you give them out in a timely manner. As such, it’s essential to identify the right time to give away discounts and coupons.