As competition in the e-commerce ecosystem becomes tougher, it’s becoming more and more important for brands to attract new customers and retain their existing customer base. The e-commerce ecosystem attracts new players every day, which means the rules of the game is constantly changing. To compete with the increasing number of competitors in the e-commerce ecosystem, it is crucial to keep the ball rolling. Let’s see how a successful coupon code strategy can help you attract new customers while retaining your existing customer base.
How Coupons Impact Competition Between Online Stores
Today’s shopping habits are changing so rapidly that it is becoming more and more difficult to survive for brands who cannot keep up with the game and fail to develop a sustainable marketing strategy. Online stores find themselves at a disadvantaged position unless they use the opportunities of e-commerce to their advantage and adapt their marketing strategy accordingly.
As reported by Once Coupon A Time which is one of Europe's largest coupon publishers , although there is a myriad of marketing strategies available to online shopping platforms of all sizes, coupon codes seem to be the most effective and accessible one. When used as part of a well-planned and sustainable marketing strategy, there is no doubt that coupon codes can attract new customers and turn them into loyal customers, which is one of the most important success factors for an online store in the current e-commerce ecosystem where the rules of the game are constantly changing.
What Makes Coupon Codes So Effective?
Before examining how coupon codes can help you expand your customer base, let’s have a look at what makes them so effective. First of all, using coupon codes regularly help you improve brand recognition and form direct interaction with customers. Although marketing tools like ads, briefs and bulletins are useful for getting your message across, they are not as efficient as coupon codes in terms of getting instant reaction.
Pros of Using Coupon Codes as a Marketing Tool
- Brand Recognition
Online coupon codes improve brand recognition, which in return makes it easier to reach new leads. When combined with high-quality content, they will attract the attention of potential customers. Even if they are not interested in using the coupon code, they will be more likely to have a look at the content and find out about your brand.
- Increase in Total Cart Amount
Using mobile and digital coupon codes will help you reach high-income customers with more purchasing power, which means the value of their shopping carts will also be higher. Studies show that when a customer makes a discounted purchase from a seller, they are more likely to choose that seller for their next purchase. So, offering coupon codes to your potential and new customers will increase the total cart amount for your entire customer base including high-income customers.
- A Larger Customer Base
Using coupon codes is one of the most valuable strategies of an online store aiming to expand their customer base. The most effective way to convince a potential customer who is a little bit skeptical is to offer them a limited-time coupon code on their first purchase. When a customer benefits from a special discount on their first purchase, they are more likely to buy from your store in the future. So, for stores trying to expand their customer base, offering a coupon code for the first purchase is a golden marketing strategy.
- Personalized Coupon Codes
One of the biggest advantages of coupon codes is that you can modify them based on different customer segments and your marketing goals. For instance, you can offer a coupon code targeting high-income customers who have reached a certain amount of shopping value within the last two years, which you can dress as a special offer for them personally. So, the customizable nature of coupon codes allows you to modify the amount and frequency of discounts you offer instead of offering universal coupon codes for all customer segments. This will also help you monitor customer loyalty.
Don’t Underestimate the Design of Your Coupons
If you want to benefit from these advantages, you should give importance to the design of your coupon codes so that they grab customer attention. The quality of the content attached to the coupon, the color scheme and the overall user experience impact the performance of your coupon code.
Given that about 75% of customers abandon their shopping carts, it is important that you also put in place pop-up coupon codes that will encourage the customer to finish their transaction, which is also a big part of the overall user experience. So, employing coupon codes at various stages of the shopping experience will allow you to yield better results in line with your short-term and log-term marketing goals.
Once Coupon A Time OÜ
There is no offer to sell, no solicitation of an offer to buy, and no recommendation of any security or any other product or service in this article. Moreover, nothing contained in this PR should be construed as a recommendation to buy, sell, or hold any investment or security, or to engage in any investment strategy or transaction. It is your responsibility to determine whether any investment, investment strategy, security, or related transaction is appropriate for you based on your investment objectives, financial circumstances, and risk tolerance. Consult your business advisor, attorney, or tax advisor regarding your specific business, legal, or tax situation.
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