Attracting and retaining customers is a constant challenge for businesses. Some effective tools in a marketer’s arsenal are coupons and discounts. When used strategically, these promotions can not only boost sales but also build brand loyalty and increase customer engagement.
Check out these statistics on the power of using coupons and discounts:
- Almost 70% of consumers love receiving coupons.
- 66% of consumers say they’d make a purchase if they had a coupon, regardless of whether they initially planned to buy something.
- 63% of consumers say they will reconsider an abandoned cart if offered a coupon
- Nearly 70% of millennials will look for a deal before making a purchase.
- 80% admit they’d try a new brand if it offered them a discount.
Coupon and discount strategies that businesses can employ to drive sales and achieve long-term success include:
Percentage discounts are perhaps the most common type of coupon used by businesses. Offering customers a percentage off their purchase incentivizes them to buy more. For example, a 10% discount on a $100 product encourages customers to save $10, which can be a powerful motivator. This strategy can be applied to single items or entire orders, depending on your business model.
Dollar Amount Discounts
Similar to percentage discounts, dollar amount discounts offer a fixed dollar reduction in the purchase price. For instance, offering a $20 discount on a $150 product can be very appealing to customers. This approach is effective for attracting price-sensitive shoppers who are looking for tangible savings.
Buy-One-Get-One (BOGO) Deals
BOGO deals are a classic promotional strategy that can drive both sales and customer satisfaction. Customers love the feeling of getting more for their money. For example, a “Buy One, Get One 50% Off” promotion can motivate customers to purchase not just one, but multiple items.
Shipping costs can be a major deterrent for online shoppers. Offering free shipping, even with a minimum purchase requirement, can significantly increase conversion rates. Customers often view free shipping as an added bonus and are more likely to complete their purchase.
Creating a sense of urgency can be a powerful sales driver. Limited-time offers, such as “24-Hour Flash Sale” or “Weekend Special,” encourage customers to make a quick decision and take advantage of the discount before it expires. This strategy can lead to a surge in sales during the specified timeframe.
Loyalty programs that reward repeat customers with exclusive discounts or points-based rewards can be highly effective in building customer loyalty. These programs not only drive sales but also keep customers coming back for more.
Encourage your existing customers to refer new customers by offering discounts or rewards for successful referrals. Referral programs can expand your customer base while rewarding your loyal customers for their advocacy.
Bundle discounts involve offering a discount when customers purchase a combination of related products or services. This strategy can increase the average order value and encourage customers to explore a broader range of your offerings.
Abandoned Cart Recovery Discounts
Many customers abandon their shopping carts before completing a purchase. You can win them back by sending them targeted discounts or reminders to complete their purchase. These discounts act as a gentle nudge to encourage customers to finalize their transactions.
Social Media and Email Exclusive Discounts
Reward your social media followers and email subscribers with exclusive discounts. This not only boosts engagement on these platforms but also helps you build a dedicated audience of customers who are more likely to purchase from you in the future.
Coupons and discount strategies are powerful tools for businesses to drive sales, attract new customers, and build brand loyalty. It’s important to use these promotions strategically and in a way that aligns with your overall business goals. The key is not just to attract customers with discounts but also to provide them with an exceptional experience that encourages them to return and become loyal patrons of your business.
For more information and ideas to help you fuel your customer acquisition programs, contact Welcome Wagon! Founded in 1928 to welcome new movers to their community, Welcome Wagon is committed to connecting with new homeowners through their mailboxes and online.