January 23, 2018 5 Examples of Digital Coupons that Convert
One goal of any business should be to convert browsers into buyers, and then turn those first-time buyers into repeat customers.
One way to do both is by using digital coupons and special offers.
Why do digital coupons work? Because they’re fast and easy to distribute, they generate awareness, and they can increase trial of your products and services. Most U.S. adults shop online (that’s about 235 million people!). And according to Statista, 52 percent of adult online users, more than 120 million people, redeemed an online coupon in 2017. At face value, digital coupons may seem like a tactic that simply gives away some of your margins. But for consumers, digital coupons can be about more than just saving money — they can make shopping easy, help them feel connected to brands and give them news to share with family and friends.
52 percent of adult online users, more than 120 million people, redeemed an online coupon
The challenge? Developing offers that appeal to the shoppers who are interested in more than just price (and the next deal) so you can maintain margins and profitability, and build your brand.
Here are some examples of digital coupons that convert:
1. A coupon to reward the first purchase
A straightforward welcome message with a discount can nudge a shopper into becoming a first-time buyer. Discounts can include free shipping for an additional incentive.
Time this type of pop-up coupon to minimize intrusiveness and encourage a purchase; avoid delivering these offers immediately after the shopper accesses your site.
Including an expiration date will heighten urgency.
2. A coupon to encourage purchase of items in the cart
Following up with customers who may have tagged some “wish list” items and giving them a discount offer can help convert those wishes into purchases.
The personalization of these offers – showing images of the items they chose with messages indicating you know what they like – can help you build relationships with customers.
3. A coupon with an incentive for sharing offers
A survey from Yesmail showed 40% of consumers would share an email offer with their friend and 28% of consumers will share deals via social media platforms.
40% of consumers would share an email offer
Why? Because helping our friends and family save money is something most of us like to do. Conversion on these offers is strong because people are more likely to use a coupon when it’s recommended and delivered by a friend.
4. A coupon for a follow-up purchase
Digital coupons can make life easier for customers who need to replenish products. For those customers who may not remember until they’re completely out of a needed product, use transaction information to remind them and make repurchasing easier.
These offers can also provide a forum for cross-selling or up-selling, building the transaction size and value.
Including a compelling discount on a reminder coupon can increase redemption rates
5. A coupon to reward leaving a review
Three out of four consumers are willing to give feedback about their purchase experience with companies and their services and products. Encouraging this direct connection can help you improve the experience of new and current customers.
Delivering a valuable offer lets your customers know you value their time and want to reward their effort.
And with their permission, include their positive comments on your site. This becomes an additional recognition of their contribution. It’s also a way to build trust with potential customers who read online reviews to help with their purchase decisions.
How to Create Compelling Digital Coupons
These guidelines can help your digital coupons deliver higher redemption rates.
- Keep the text short and clear with the call to action and the “what’s in it for me?” message easily understood. Headlines with 20-25 characters or about eight words will capture attention.
- Make coupons easy to see and read by including visuals that link to your message and benefits that are specific and important to your customer. A single large image is easier to understand than several small images. Consider your audience when choosing your font style and size.
- Ensure redemption is easy with minimal steps required to deliver savings, satisfy your customers and build your brand’s value. Avoid too much small print and a lot of restrictions on usage.
- Personalize the mix of products in your offers. Include products customers purchase with high frequency in your coupon offers to help you retain current buyers. Add in offers for items customers view as desirable treats that are purchased less frequently. For these items, coupons will incentivize incremental purchasing.
- Target your audience. You’ll engage your customers more effectively if you focus on a specific audience. Tailor images, messages and the offer to meet their needs. By tapping into the emotional connections consumers have with your product or its benefits, your message will be more relevant and will encourage conversion.
Estimates suggest consumers make more than half of their purchases online and spend about two hours each week looking for deals. While saving money is important to consumers, they also want to interact with companies who understand how to reach them and who value them.
Digital coupons can connect you with your customers. A well-executed coupon can also improve customer retention, build loyalty, and generate excitement about your brands and your business.