Discounts and what they can mean for your business

How to implement discounts in your ecommerce

how do you feel when suddenly a store tells you that you have a promotional code on your next order and that you save 25% or they give you a 2X1 or invite you to one more product in your shopping list? Well, that’s what we all feel when the same thing happens to us, that’s why discounts are so valuable.

First of all, if you want to implement discount coupons to your online store, you must keep in mind that these codes must be easy to assimilate for users. That is to say, you have to use words and keywords that are relatively easy to remember and write down, so that they do not get lost in the customer’s memory. For example, if you are going to make a promotion for Halloween, it makes sense to use something like: Halloween2016

Another main point is the fact that it should be easy to calculate the discount they will receive if they buy the product. In other words, a 10% discount coupon is much easier to calculate than a 14% discount coupon. Also, it is easier to size the discount if it is something like “£20 off all orders over £100”.

Discount codes should have a minimum of restrictions regarding date, product type, location and other factors. It is necessary to set some limits when managing discounts, but you don’t need to go over restrictions and conditions, because then they leave without using it. In other words, you have to prevent customers from thinking about it, because if they do, then they will hesitate and end up not buying anything.

Now, all is not gold when it comes to discounts. A very negative aspect of them is that you get used to them, and worse, that you get your customers used to having them. If you abuse them too much, you will probably notice a drop in conversions when you don’t offer them, that is, in the end your business runs the risk of falling into the net of bargain hunters (the typical users who only look for occasional offers and are not loyal to any store)

what kind of advantages can coupons bring to your ecommerce?

Increase spending per customer

When you make a discount promotion for a certain value of purchase, or for a series of items (for example, if you sell cosmetics, you can offer beauty packs of the same brand, and if they buy all of them you offer them a discount for the set) many users tend to increase the value of their order to reach those minimums. This causes the customer to spend more than they originally intended.

Building loyalty with consumers

The best way to establish a relationship with a customer that compels them to come to your store periodically is with offers and discounts. Exclusive opportunities that reach them directly and encourage them to buy. Be generous with your newsletter subscriber list and offer them, from time to time, exclusive discounts.

Reinforce brand awareness

When you manage to develop a good list of subscribers, as well as regular activity and feedback on social networks, and people who periodically check your store for offers and possible purchases, you are increasing the added value of your online store and generating a community around it. Little by little your subscribers will see the brand and not the products, greatly increasing the durability of their memory. They will no longer go in search of “that store that has offers” but they will go to “your brand”.

Analysis and control

“Power without control is useless”, yes, it is the slogan of a tire brand, but it is a truth as a temple in almost all matters related to ecommerce. It is useless to improve and optimize your business if you don’t analyze and control the results obtained. This part is essential to be able to measure results and know where we have failed and where we have succeeded. The analysis tools are multiple and variable (from those offered by Google, those provided by your own ecommerce generator, those offered by your emailing provider…)

Virality

The best thing about social networks is that they are not only a direct communication channel with all your customers and potential customers, but they also represent a branch structure in which everyone is connected to everyone else. If you launch a juicy and attractive offer, and you do it in a way that makes it worthwhile for people to share it (for example, making a discount that only applies to those who have managed to bring a friend), it is very likely that this offer/discount will go viral in a very short time.

are you starting to see the value of discounts? They are a powerful marketing weapon, and in fact, they are usually one of the ones that get the best results. However, you have to do it right, and most importantly, you can’t base the entire commercial strategy of a business on discounts, because that is either a lie (and there are no such discounts, only inflated prices, a very counterproductive tactic) or it is a ruin impossible to maintain.

As we have seen in this article, discounts are a powerful weapon that has great advantages if used correctly, drawing a strategy and knowing the different types of discounts that we can use, can bring great benefits such as helping you to encourage the purchase, loyalty to your customers or gain visibility.

Therefore we encourage you to continue learning about the types of discounts you can apply in your Ecommerce, how to apply them and the advantages they can bring to your online store, in the following article: Get inspired! 11 types of effective discounts for your business

are you ready to try a discount campaign? Don’t know how to prepare it? Ask us whatever you need, that’s what we’re here for 🙂

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