Online Couponing 101 for Multichannel Marketers
People love to save money and coupons help them save even more, whether they are shopping in a store, from a catalog or online. Coupons have always been part of the Internet shopping experience, but not all online shoppers have been able to easily find and use them.
Below are 10 ways to increase sales with online coupons:
1. Don’t limit your audience. When creating coupons for the first time, merchants sometimes forget to offer coupons appealing to a wide audience. One of the most common mistakes is creating a coupon valid only for a specific product or product category. In limiting the product range, merchants are also limiting potential customers.
2. Avoid Os, 0s, ls and 1s. Coupon codes should be short and simple. Avoid using characters that can be misinterpreted, such as the number 0 and the letter O or letter l and the number 1.
3. Know when to offer flat rate discounts vs. percentage discounts. Coupons offering a flat rate discount in dollars, such as a $10 off purchases of $50 or more, tend to attract more clicks and have better conversion rates for sites with average orders below $100.
Sites with average orders in excess of $100 find coupons offering a percentage discount, such as 10 percent off $100 or more, often perform better. Coupons that provide discounts with a low minimum purchase threshold, such as $5 off a $15 purchase, or even no minimum at all, such as $10 off any order, consistently result in high conversion and click-though rates.
4. Use coupons to upsell. Create coupons with a minimum spending requirement that is higher than your average order. If the discount is good enough, consumers might add extra items to the order. For example, a book merchant whose average order is two items totaling $40 offers a 10 percent off coupon for orders of $60 or more. The result: Customers buy another book to meet the minimum and get the discount.