Selling online is something tempting and everyone who has a physical store goes through the head to do. If I already have the experience and the products, why not sell online the same way I do on the street?
The problem with electronic commerce is that competition is brutal. To sell online you have to use marketing tools and strategies much more aggressive than on the street.
Discount coupons as a method to attract customers
One of the methods that works best to convince a potential customer to end his purchase and not leave the shopping cart when paying is the discount coupons.
If you are one of those who have a control of the abandoned carts when making the payment (if you do not have control, I recommend you to put yourself there already), you will see that the percentage of dropouts in this last step is very high, almost 70% average on online sales.
There are numerous causes that can lead to abandon the intention to purchase in that last step, but the main ones are:
Increase in final expense for shipping costs, VAT
Lack of confidence in payment methods
Invalid delivery conditions for the customer
Slow web page
Long and tedious purchase form
Final price more expensive than the competition
One of the most forceful and effective ways to improve abandonment by increasing the final price , either for shipping costs, VAT not included or any type of extra that must be added at the end is to offer a discount code that can compensate for that increase .
To the one that does not suppose an effort to him that increase can not even worry of looking for a coupon discount in Internet before following with the process of purchase, but to that really worries to him and wants to save in the final step, very probably look for that code and It serves as a psychological stimulus to finalize the payment and not abandon the cart.
Discount codes in subscription businesses
The type of business where more and greater discount coupons exist are usually in business models that are based on subscription payment .
If the way to monetize your project is based on a monthly, annual payment … you can offer a very aggressive discount with which you may not even make money with the first payment.
Aggressive promotions in these business models work very well because it is a very effective way to engage customers who doubt whether or not to acquire your service and need a strong stimulus to prove it. If your product is good, you will surely decide to renew the payment once the first paid period has expired and that is where you make your services profitable.
Businesses where it is customary to find discount coupons for example are hosting companies . A satisfied customer with your hosting will hardly change to another if the price is in line with the market average. Hosting companies offer numerous coupons like these where the first payment always has a significant discount.
Another business model where coupons are widely used is online courses that require a subscription. A juicy initial discount is offered so that the student is encouraged to start the course and renew his subscription monthly.
If you are an online store owner and have not yet tried the discount coupons, activate them and find out if your% of abandoned carts improve with this option, you may be surprised. In addition, you can send these coupons to your customer database to reactivate them and have them repeat purchases.