Everyone loves a good deal; who doesn’t? If you are a business competing for customers in the online marketplace, you definitely know how tough it can be. You have to develop ingenious ways to attract and keep customers. Promo codes are a great way of engaging with potential and existing customers and increasing conversion rates., but you must understand how to use them correctly.
Shoppers are always looking for ways to save money or get more for less. Many shoppers visit sites such as Vouchertoday in the hope of getting exclusive voucher codes and promo codes. This shows just how much you could push sales by using eCommerce codes.
Before you start using coupon or voucher codes, you need to analyze your business and the target market to determine the best way to boost profits with promo codes. It is also important to understand how best to impact both the client and the business positively.
How to Use E-commerce Codes for Your E-Commerce Site
1. Have Codes for New Visitors
What is your website’s conversion rate? Do you know how many first-time visitors to your website turn into sales? Given that the overall conversion rate is about 3%, you need to know where your business stands. Of course, it depends on the industry. If you are in the health and pharmacy industry, you might be lucky because such consumers come with their minds already made up on what they want.
For industries like consumer electronics, the conversion rate is as low as 1.4%. The glaring question is, how can you incorporate e-commerce codes to improve conversion rates for your business? Have you thought of new visitor codes? If not, you should because they can help you convert leads into sales.
If you notice that you are getting a high number of organic traffic, but they are not resulting in sales, an enticement could be what your site is lacking. You could use special codes to give your first-time customers a discount.
2. Loyalty Reward Codes
If you want to save on your marketing budget, you have to find a way of keeping your existing customers. It is cheaper to retain customers than acquire new ones. Customers leave for a reason; it could be poor customer service, the usability of your site, or your competitors could be offering unmatched discounts.
Of course, you can’t retain clients who have simply decided to leave. But if they’re leaving because of inconveniences you can control, you had better find ways to keep them. Impressions are important in marketing, and if your customers don’t feel appreciated, they might just walk away. Discount codes could come in handy at such times.
So, what about loyalty discounts? Loyalty rewards codes are easy to use and can improve sales and keep your customers loyal at the same time. You could have redeemable codes for the customer’s shopping anniversary or even for shopping via your site for a specific period. Such codes are even more effective when because you can personalize them.
3. Abandoned Cart Codes
Do you know that at least 76% of shoppers abandon their carts? Even more interesting is the reason for cart abandonment. Shoppers cite unexpected shipping, taxes, and additional unexpected fees as their reason for not completing purchases on e-commerce sites. Now that you know, you can do something about your e-commerce site to reduce cart abandonment.
When you know how much your business loses in cart abandonment, it tells you that you have potential shoppers. But if you don’t act, they will compare prices and shopping experience with other merchants, and if they find better alternatives, you will lose valuable customers.
If you have the customers’ email, you can save the situation with a coupon code, reminding them that they have a limited amount of time to get a discount on their shopping. This creates urgency and might lure them into completing the purchase.
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But what if they are first-time shoppers and you don’t have their emails yet? Well, you could have a coupon code that only activates for first-time purchases. They can fill in their email address and get a discount.
4. Free Shipping Codes
One of the main reasons shoppers abandon carts is the cost of shipping. Most shoppers never consider shipping cost when budgeting, and if it turns out to be a significant amount once they have filled their cart, they simply walk away.
Suppose you realize that you are losing shoppers due to shipping costs. In that case, you can introduce shipping discounts on selected items or to customers who spend over a predetermined amount of money.
Final Thoughts
If you must use e-commerce codes, it should be solely to drive up sales and make a profit. But if you are not careful with this approach, you might end up hurting your revenue. Before you give out voucher codes or coupons, make sure they are within your budget to avoid losses.
You should include the cost of the codes into your marketing budget in advance, or they might put you into a delicate profit margin dilemma. An e-commerce store should set aside a certain amount for marketing promotions yearly and then find effective ways of incorporating these deals into your website.
