Why coupons are the best marketing tool for Ecommerce Business

Why Coupons are the best marketing tool for E-commerce Business?

Ask any business owner about the best marketing tool to attract customers and pat would be the reply “Discount�. The same applies to any eCommerce business. Discount coupons or simply coupons can work wonders to increase online sales. This is one of the best ways to attract repeat business.

Discount codes, better known as coupon codes are commonly used for online shopping. During the checkout process, E-commerce store instructs their customers to enter the coupon code in a box which entitles the customer to

get a certain discount on total order or shipping costs. It also helps you increase your conversion rates. 

How Coupon will be Helpful to Increase your Brand Value

1. Customer Retention Customer retention plays a key role in the success of any online business.

Studies have shown that a major part of business revenue comes from existing customers. Considering that the current and past clients are the foundation of your business, you got to develop a customer appreciation strategy. You need to make them feel special and one of the best ways of doing it is to offer them discount.

2. Inventory Moves Quickly Slow moving inventory consumes a lot of warehousing space. This can be quite frustrating for business owners. In order to free this valuable warehouse space, you got to come up with a plan that will work to clear out the items.

Offering coupons is an effective way of dealing with slow moving inventory.

When product prices are slashed, it can certainly help to move inventory fast.

No matter how huge your excess inventory is, when put on sale at discount price, it can contribute immensely to clear out the inventory. For instance, after your customer purchases products worth $200, you can offer a free nonstick cookware. For such purchases, you can use coupon code like WARE200 3. Set Up Automatic Discounts for your e-store While automatic discounts in online store are often applied to pre-requisite amount spent by the customer, you can also create automatic discounts for your new customers. For instance, setting up an automatic coupon that gives 15% discount to the first 50 customers who order, can be a good strategy to

attract new customers. First-time purchase discounts are sure to increase online sales as well as help to build customer loyalty.

Here are some statistics regarding the coupons: 

In 2014, 16 billion digital coupons were redeemed. This figure is projected to grow to 31 billion online coupons in 2019.

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In 2014, 112.5 million U.S. adults had redeemed online coupons. This figure is projected to grow to 126.9 million users in 2016.

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Groupon was ranked first with an audience of approximately 30 million unique monthly visitors. Considering that the number of mobile Groupon app downloads worldwide has grown by 40 million per month in a little more than a year, a considerable number of Groupon users are accessing the service through the company’s mobile platform.

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The statistic above presents the number of cumulative customers of group buying company Groupon between the second quarter of 2009 and the second quarter of 2015. As of the most recently reported quarter, the daily deal site had 48.6 million unique customers who had bought at least one of Groupon’s deals during the trailing 12 months.

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