Coupon codes are one of the most effective tools for a local business to increase their online sales. Not only do the right coupon codes provide customers with discounts, but they also encourage these loyal customers to try new products or services that they may not have otherwise considered.
Want to use this marketing tactic to grow online? Look no further than this post that shows you everything you need to know about coupon marketing, including 12 high-converting coupon ideas that'll get you sales any time, any day.
What is coupon marketing?
Coupon marketing is one type of marketing strategy that any business can use with the help of coupons, vouchers, and discounts. These coupons are typically used to attract, convert, engage, and retain loyal customers.
What are the kinds of coupon codes you can use in marketing?
Coupon code offers can widely be classified into two primary groups.
General coupon codes
A general coupon code single, reusable discount code aimed at attracting and converting a large number of customers to make online purchases in your store. These codes are shared through public channels and typically provide smaller discounts than personalized codes.
In your online business, you'll most likely use this kind of coupon code to get new customers and encourage existing ones to make a purchase.
Customized discount codes
On the other hand, customized discount codes are single coupon codes that come with a unique pattern. These are then distributed through special means or granted to specific loyal customers.
These codes are often tailored with customer information and utilized for targeted promotional campaigns. For example, this might include influencers receiving a custom coupon from a brand they're working with.
This way, a brand can see how many of the influencers' followers redeemed the code, giving them vital insights into how well their influencer marketing strategy is performing.
How coupons can benefit your business
While promotional codes can be a great way to attract customers, it's important to remember that they can come with a cost.
So before you go crazy with giving discount after discount to visitors and customers, take some time to do the math and make sure your margins don't suffer as a result.
Despite the cost however, coupon codes are an excellent marketing strategy to attract new customers to your online store, launch new product lines, and give a better perception about your brand.
Here are a few more ways a coupon code can positively impact your local business.
Encourages customer retention
They can encourage repeat purchases from current customers, promote new products or services, and help clear out surplus stock.
According to a recent survey, about 68% of shoppers believe that coupons help build customer loyalty. This means even customers themselves understand the effect that a discount has on their buying behavior with a brand.
Gives first-time buyers a nudge
One of the most important things a great discount code does is turn someone in your audience into a first-time buyer.
Even shoppers themselves admit it: up to 86% have reported that coupons influence them to try new products they've never purchased before, and 80% have said they've chosen brands they wouldn't typically buy from because of a discount.
Boosts customer engagement
Giving away online vouchers and coupons can be a successful marketing tactic for businesses looking to boost sales and improve customer engagement.
In fact, a recent study by Inmar Intelligence had some compelling things to show about how coupon codes affect buyer behavior:
- 83% of customers claim that coupons were the reason for a difference in their shopping behavior. Among them, 39% have said that a coupon was the reason they bought a particular product sooner than they anticipated.
- 38% percent of shoppers bought more than they would have otherwise because they received a coupon.
- 63% of buyers say that they would use more coupons if they were available online.
What type of coupons can you offer? (+ examples)
Looking for some discount code ideas to use? Here are 15 types of coupons you should know and can actually use in your business.
1. Weekly or monthly or daily deals
Nykaa offers fresh deals every single day on their marketplace, giving customers something new each time.
Offering a weekly, monthly, or weekly discount for customers creates a sense of urgency that can motivate customers to make a purchase before the opportunity passes by.
With the option to apply these discounts to specific product categories, selected items, or during special holiday weeks, there's never been a better time to take advantage of this strategy. By using this tactic, you can give your sales a significant boost, especially when demand is low.
2. First-time buyer incentives
Special discounts on first-time purchases are an excellent way to attract new customers and convince them to purchase from your store. You can offer a percentage-off discount or a fixed amount off their first purchase, making it more enticing for new customers to give your products a try.
3. Holiday and seasonal deals
Providing discounts during holidays and seasonal events can potentially increase sales. Special promotions can be created for each holiday season and a countdown timer can be utilized to create a sense of urgency, ultimately motivating customers to take advantage of the limited-time offer.
As long as you take the time to craft your holiday sales strategy, you'll be able to see those coupon code redemptions coming in.
To start with your own holiday deals, you can start by giving discounts on product categories that are trendy for the holidays, or only make them apply to relevant products for that season.
4. Abandoned cart coupon codes
One strategy to recover lost sales is to offer coupon codes to customers who abandoned their shopping carts. By sending them a personalized email with a discount code, they may be encouraged to complete their purchase, which could help increase conversion rates.
The current abandoned cart recovery rate hovers at about 10%, with some e-commerce businesses seeing much higher or much lower numbers.
With a platform like Cococart, you can automatically enable abandoned cart coupons in your checkout process—in literally a couple clicks.
Set up an automated email campaign through your Cococart dashboard. Then the moment your customer abandons their shopping cart, you can auto-apply coupons to send to their email with some special offers.
5. Social media incentive coupons
Having coupon offers for customers who engage with your brand on social media can boost sales and expand your brand's visibility to a larger audience.
You should consider making these public codes that anybody can use, whether they're a long-time customer or simply a follower looking for an incentive to buy now.
6. Newsletter subscription offers
Newsletters are a great way to keep customers informed about new products, specials and discounts, and they can also be used to give coupon offers to your subscribers.
You can give your audience a digital coupon code to use in your ecommerce store in exchange for them leaving their email address.
This way, you're able to send them marketing emails and get them to keep buying from your brand.
7. Free shipping offers
Free shipping coupons are a great way to encourage customers to make a purchase. By offering free shipping, you can give your customers an incentive to buy more and increase your sales, especially for your online store.
Plus, free shipping can be applied any day of the year, making this an especially attractive coupon code idea for boosting sales.
8. The "Deal of the Hour"
The “Deal of the Hour” is an innovative online marketing strategy that has been gaining in popularity, particularly with businesses.
It's a type of flash sale that's truly a flash—because customers can only get the discount if they purchase within the hour the deal goes live.
Promoting a "Deal of the Hour" with advance notice or a countdown timer on a website can increase customer engagement and sales.
9. Product bundling discount code
Product bundling discount codes can be a great way to add value to your customers while also growing profits. Bundling complementary products, such as clothing items or even platforms that come with add-ons, allows shoppers to buy several items in one purchase at a discounted rate.
It’s important to be aware of the profit margins for each item you’re bundling together before deciding on a price.
You should consider offering no more than 10% off if you have margins under 50%, which encourages customers to complete the purchase without breaking your bottom line.
10. Exclusive offers for loyal customers
You can also create exclusive discounts and coupon codes for people who are part of your customer loyalty program. This is not only a great way to reward loyalty customers but also get others to join your program too.
If you market your customer loyalty program well, you can show potential customers that they get exclusive promotions and discounts just by being a member.
Business owners of all sizes can really make the most of this coupon marketing strategy since you can start with the customers you do have.
11. Percentage-off coupons
Percentage-off coupons are a great way to encourage customers to make larger purchases and spend more money in your store.
These types of discounts can range from 5% all the way up to 50%, depending on how much you’d like to promote something.
This kind of sales promotion works by giving a discount to loyal customers only if they can complete a minimum order amount. For example, you might give them a 15% coupon of they spend at least $100 on your store for a period of time.
You might like:
The Ultimate Guide to Psychological Pricing for Your Small Business
12. Pre-sale discounts
By offering a discount code to customers who purchase items before they become available, you can encourage shoppers to make their purchases while they still have the chance.
This not only increases sales, but also helps create excitement and anticipation for your product launch. You can also use this type of discount code to gauge customer demand for your product ideas, then get their input on how to make the product better when you launch.
13. Feedback coupons
If you want to pair your coupon marketing strategy with a sweet way to get customer feedback, then consider offering some feedback coupons to your customers.
How this works is you give your customers a coupon code in exchange for providing their feedback about your business.
It's a win-win because you gain valuable insights while also encouraging customers to purchase your products or services in the future.
This type of coupon code works best when it’s targeted to specific customers and offers a substantial discount (e.g., 20%), so be generous! Remember, customers are taking time out of their busy days to give you valuable feedback.
14. Partnership coupons
We alluded to this type of coupon code idea in the beginning of the article, but you can use partnership coupons to reach more potential buyers by leveraging someone else's audience, like in the case of influencer marketing.
This type of coupon involves partnering with another business, brand, or online content creator to offer exclusive discounts and promotions to their own customers.
Other examples of partnerships could involve a collaboration between two complementary e-commerce stores, where each store offers promotional codes that customers can use when making purchases from either company.
15. Mystery coupons
Mystery coupons are a great way to drive more sales any day of the year—with a bit of fun sprinkled in for customers.
With mystery coupons, your customers get discounts on their purchases without knowing how much they save before they check out.
This element of surprise makes it ultra engaging, and this encourages shoppers to take advantage of the offer while also creating some excitement around your brand.
How do you promote coupon codes so customers use them?
Promoting coupon codes effectively is the key to getting your customers to actually use them and take advantage of what you’re offering. Here are 10 ideas for promoting your coupon codes so that customers don't miss out on the discounts and savings:
1. Promote it through email marketing
Email marketing is an effective way to offer coupon codes to customers. It allows businesses to target their promotions to customers who are already interested in the product or service being offered. By creating personalized offers and discounts, businesses can encourage customers to take advantage of their coupon codes and drive more sales any day of the year.
To promote your coupon codes through email marketing, you should craft engaging emails that
Send an email marketing campaign announcing the coupon code and its details, such as how long it will be available, when it expires,
2. Share your discount codes on social media
Social media is a great way to spread the word about your business's coupon codes and offers, which can help you drive more sales in any day of the year.
You can create posts and stories that highlight your current promotion, or even create an entire series of content dedicated to it. Use catchy hashtags and eye-catching visuals to grab people’s attention and make sure they know when
When you share your coupon codes on social media, you have a massive opportunity to reach more first-time customers.
Want to dip your hand in paid marketing? Consider running social media ads that share a discount coupon with first-time customers.
3. Offer it in an exit-intent popup
Offering coupon codes as an exit-intent offer can be a great way to increase sales any day of the year. An exit-intent popup is a small window that appears when a customer is about to leave your website.
This can be used as the perfect opportunity to offer customers something special, especially like a coupon code, before they disappear from your online store forever.
Consider offering them an awesome deal—say 15% off—if they subscribe to your email list through your exit popup, then you can remarket to them over time.
4. Make it easy to use a discount code
One of the most important parts to successfully using coupon codes in your online sales strategy is to, of course, make it easy for customers to find and use the promo codes you have.
The next time you release a coupon campaign to drive more sales, ask yourself these questions:
- How will customers discover this coupon code?
- When customers find the promo code, how do they implement it?
- Are customers able to see their total savings from a promotion, e.g. their total percentage discount amount, before payment?
If you use a powerful order taking platform like Cococart, customers will never miss the chance to put in a discount code from your brand.
This is because promo code collection is an integral part of Cococart's checkout process—making sure you get better conversions from strategies like this.
Ready to increase your sales via coupon codes?
Why wait? Start offering coupon codes today to drive more online sales and give your customers an incentive to shop more with you. With the right coupon code ideas, you can make it easier for customers to purchase from you, while also increasing your profits.
