How To Make Retail Discount Codes Work For Your Business
Retail discount codes have been growing in popularity for years. There are many market places for companies and individuals to swap discount codes and many online retailers are opting to include discount codes as part of their digital strategy. What are the advantages of retail discount codes though and how can you get the most out of them for your eCommerce website? Today, we shall explain.
Benefits of discount codes
1. Increased AOV. A common type of discount code is restricting the customer to only being able to claim the discount once they have reached a certain total order value. Such as ‘10% off when you spend £100’. Customers initially looking to just purchase £80 worth of goods will more often then not be persuaded to add another £20 to their basket for a discount. Why?
2. People love a bargain. Consumers love to get something for free, or feel that they are getting a good deal. Voucher codes will be popular with your customers (both new and returning) as long as they don’t have to jump through too many hoops.
3. Easy to share. Creating shareable content is a great way to build your brand, increase traffic to your site and make more sales. Discount codes are easily shared via coupon market places and through social media; creating content to go with your codes generates more value from things such as SEO. Check out Search Engine Journal‘s blog post on the importance of shareable content and how to create it here.
4. Easily tracked and tested. If you are looking to provide a promotion to your customers, retail discount codes are a good choice as they can be easily tracked and tested. In the long run, are you better off providing 10% off or 5%? This blog post from Justin Cutroni explains how to track and test retail discount codes in Google Analytics.
How to make retail discount codes work for you
1. Clear old stock. Got any old products which are costing you money to store. Use coupon codes with high discounts to clear old stock. Your customers love the great deal and will share the codes with friends so you’ll get rid of the stock twice as fast.
2. Treat loyal customers. In the same way that loyalty programs can grow your customer base and increase repeat custom, retail discount codes can also be used to treat loyal customers and keep them coming back for more.
3. Use on high margin products. Just because ‘£10 off when you spend £100’ sounds like an easy discount to advertise and one that your customers will love, it doesn’t mean you’ll be making the most of offering the discount. Don’t just look at increasing average order value with deals but also look at margins. Use eCommerce discount codes to reduce the price of high margin products so that you see a higher return.
4. Test what works. Since tracking and testing eCommerce discount codes is so easy, you shouldn’t settle for one code once you’ve created it. Although I’ve explained the benefits of codes on high margin products, it might not work for everyone. Perhaps you won’t sell enough of these products to reap the benefits.
How to use live chat with discount codes
There are many ways you can use live chat in tandem with eCommerce discount codes. Here’s 3 ways to synchronise live chat and discounts in order to increase sales and repeat custom:
1. Engage with customers that have come to claim a code. Visitors coming to a certain URL which has been created for people redeeming a coupon or buying through a sale can be engaged with proactive chat. There’s nothing more irritating than having an amazing deal and then forgetting to put your code in the right box or being faced with an error. A tailored invite around chat can be the perfect opportunity for making sure that the customer can successfully redeem their offer and an opportunity to persuade them to buy more.
2. Give bargain shoppers the best deal. If you can see that a customer is clearly looking for a deal (searching for codes and skimming through the ‘sale’ pages) why not give them your best deal? Use a proactive to find out what the customer wants and then give them your best deal in that area. They’ll love the experience and you might be able to increase the average order value by making them buy a little more to get up to that ‘10% off’ basket value deal.
3. Only give your best customers the best deal. Don’t want your coupon codes easily shared and given out to every Tom, Dick and Harry? Alright, just use live chat conversations to qualify your customers. You can learn a lot about a customer through live chat. Not just if they have bought a lot from you previously but also if they just need a good deal to keep returning over and over again.
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