For 89% of the consumers, price is the main factor affecting purchasing decisions. Customers are always looking for ways to get their essential products and services at lower costs and better quality. One mechanism that can contribute to sales is coupons. Giving customers the option of a discount coupon can be a huge motivator that helps drive their purchasing decision.
For this particular article, we will discuss the following:
- What discount coupons are.
- Why you should use discount coupons in your eCommerce.
- Six types of discount coupons.
- How to calculate and determine the discount coupons’ rate.
- Some tips for using discount coupons in eCommerce correctly.
- How to add discount coupons in GoDaddy’s e-store easily.
Discount coupons: what are they?
Discount coupons are shareable and promotional sale codes that can be used to reach a specific target audience and offer some products for sale at a lower-than-normal price – with a discount.
Why should you use coupons in eCommerce?
Discount coupons can increase business:
- Sales, as reported by Shopify at Unite 2017, of eCommerce vendors that actively provide discount codes to customers are 8x more likely to make a sale than those that don’t. And 25% of consumers said that they spend more overall due to coupons
- Customer acquisition: The survey from RetailMeNot also found that 80% of first-time customers report being swayed by a targeted discount of some kind.
- Customer retention: Offering discounts to your loyal customers is an effective way to thank them for their ongoing support—and to keep them coming back for more. According to the 2019 Loyalty Barometer Report, “61% of consumers say that the most important way a brand can interact with them is by surprising them with offers or gifts just for being a customer.”
On the other hand, according to Juniper Research, there will be a 94% increase in digital coupon redemption by 2022, and the global mobile coupon market is expected to grow by more than 56.5% CAGR by 2025.
So, why don’t you take advantage of this and use some online coupons on your e-store?
6 types of discount coupons to use
If you want to use discount coupons in eCommerce and want to see a measurable uptake in sales, you need to think about the type of coupon to use in the first place.
Here are six main discount coupon types which can make your business more successful.
1- Money off:
You can offer an amount off. For example, “$10 off your next purchase.”
2- Percentage off:
This is one of the most popular types of coupons which you will see all the time in eCommerce stores. You can offer a percentage off, for example, “Get 15% off an item price.”
3- Exclusive discount:
You can keep discounts exclusive to specific fans by sharing a link to your discounted product. This will make the customer feel special.
You can sometimes reward your loyal following of fans and customers by giving them a special discount coupon as a thank you.
5- Pre launch discount coupon:
If you are launching a new version of your e-store or a new product, you can promote it by giving your first customers a discount. For example, your first ten customers get 50% off.
6- Up-sell and cross-sell discounts:
You can give your customers an incentive to buy additional products or complementary products by giving them a discount coupon code in an email following their first order.
How to calculate and determine the discount coupon’s rate
A simple equation exists which you can use when you need to calculate the discount coupons’ rate:
If you use this equation correctly, you can calculate any coupon rate.
Here’s how to achieve this equation in your real business in only three simple steps.
3 simple steps to calculate and determine the discount coupons’ rate:
- Figure out the face value of the issued bonds: you can do this step if you get some help from the funding proposal or the company’s accounts department.
- Determine the number of periodic payments made during the year, then add them up to calculate the total coupon payment during the year.
Note: if you find that the periodic payments are equal, you will need to multiply them with the total annual coupon payment and the number of payments made in the year. Use the following equation:
3. Divide the total annual coupon payment by the bond’s par value and multiply by 100%.
Tips for using discount coupons in eCommerce correctly
Here are some important tips on how to use discount coupons in eCommerce correctly.
- Create a dedicated landing page if your coupons target a specific category of items or a set of items.
- Make sure that you create simple and easy to use coupons to make your customers’ experience quick and fun at the same time.
- Always generate a simple coupon code to make it easy for your customers to enter it anytime without having to search for it. We recommend making your coupon code a maximum of 6 characters.
- Create a sense of urgency around your coupons to make your customers think that they will lose out on the discount if they don’t use them immediately.
- Keep your coupon active for a short and limited time to increase your sales in a shorter period.
You can also check our ‘White Friday sale tips to help market your e-store’ guide for more tips.
How to add discount coupons in GoDaddy E-store easily?
GoDaddy E-store allows you to add discount coupons easily. Customers who receive the coupon code can apply it at checkout.
- Go to your GoDaddy product page.
- Scroll down to ‘Partner Programs’ and select Manage next to the e-store you want to customize.
- In the left panel, click eCommerce, and then click Manage Store.
- Click Marketing, and then click Discount Coupons.
- Click + Add New Coupon.
- Complete the necessary fields and click Save.
When creating a coupon, you have the following options:
- Name. Add a coupon name for your convenience. Only store owner can see it.
- Code. To create a random code, click the generate. Alternatively, type your own code (for example
Your customers will use a code to receive a discount. The discount can be one of the following:
- Free shipping
- Absolute discount (for example, $5 off)
- Percent discount (for example, 10% off)
Try it out!
Using discount coupons in eCommerce can be a powerful marketing tool for you and your business. It can help you increase your sales and gain new customers in a short time, so what are you waiting for?
Remember: you can easily calculate and determine the coupon’s value by using the above equations!
If you have further questions, please do not hesitate to contact us if you need help adding the discount coupons to your GoDaddy E-store.