It’s become a common practice for customers purchasing an item online to Google “Coupon Code (desired company)”. Everyone likes saving money and when you can type in “DEAL20” or “WINTERSALE30” into a tiny box at the checkout and see the total price drop, people will do it.
We posted about E-commerce pricing strategies, in the past, and one of the recommendations we made was to be careful about trying to have the lowest price in your market. But doesn’t offering coupon codes fall under this category? Not if you have a good strategy.
Mashable asked a panel of entrepreneurs about their experience with e-commerce coupon code strategies and their ideas for what actually works.
Highlights from Mashable’s Strategic Ways Businesses Can Use Coupon Codes:
- Distribute Through Partners: Pete Kennedy recommends giving partners discount offers that they can distribute to their audience. Make sure to set a limit on the code by either time or quantity, but also provide the partners with a commission to add promotion incentive.
- Reward Loyal Facebook Fans: Natalie MacNeil suggests offering coupons directly to your Facebook fans (or equivalent top fans) to reward loyalty and give another reason for customers to keep track of your business online.
- Track Revenue Sources at Events: Knowing where sales are coming from is always valuable information to a business, which is why Tim Jahn’s advice to give out unique codes at events to keep track of which channels produce sales is a great idea.
- Discount Coupon Codes Close Sales: Anthony Saladino’s experience is that by advertising coupons right on their site, they can ask visitors to sign-up to their email club in order to receive the code in their inbox. They close a sale and gain a mailing list subscriber.
- Encourage Action: Because coupon codes can have limits attached to them, DC Fawcett says that codes only valid for a period of time or a quantity can prompt people to quickly take action.
Are you currently using coupon codes? We would love to hear about how they are working for your business.