How to Use Coupons and Discount Strategies to Boost eCommerce Sales?

Is your online store struggling with low sales? This guide will show you how to use coupons and discounts to convert visitors into customers and boost your eCommerce sales.

An eCommerce store requires conversions, and it can only happen if the visitors spend their money. One way to entice customers and boost sales of your online store is to offer coupons, discounts, and exclusive deals to customers. If you have a WooCommerce store, you can easily do so with the help of a WooCommerce coupon plugin. So, make them an offer they can’t refuse.

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Coupons, discounts, and deals sound good, but they do come with some downsides. Let us look at their advantages and disadvantages.

Advantages of offering different types of coupons in your eCommerce store include,

• Shoppers love discounts and exclusive deals. They feel valued, which increases the frequency of visits, improves conversions, and builds long-term loyalty.
• Happy customers are most likely to spend more time and money on your store. Therefore, a well-planned store offer can boost sales significantly.
• Discounts are also one way to clear up your old or low-selling stocks, thus helping clear your store’s inventory.

Disadvantages of offering excessive discounts and coupons include,

• Too many discount deals may adversely affect the profitability of the store. Therefore, you must plan the offers carefully and make them available at the right time.
• Regular discounts may cause customers to expect deals for every purchase. This will result in low sales during periods without active coupon offers.

Looking into the advantages and disadvantages of online store offers, here are some of the best ways you can use coupons and discounts to generate more sales.

1- Pre-Launch Coupon Campaigns

Launching a new store or introducing a fresh product is an exciting time, and pre-launch promotions can help you create buzz while securing early sales. Offering exclusive pre-launch coupons is a proven strategy to attract attention and entice potential customers.

Start by researching what your target audience wants. Look into trending products or utilize tools to identify popular searches in your niche. Social media platforms like Instagram, Facebook, and TikTok are great for analyzing audience interests and engaging with them directly. Promote your pre-launch offer by showcasing the benefits of your product and emphasizing its limited time to create urgency.

For example, share exclusive coupon codes with your email subscribers or offer discounts to early sign-ups through social media campaigns. These strategies not only drive initial interest but also help you build a loyal customer base even before the launch.

2- Leverage the Power of BOGO Deals

Buy One Get One Free (BOGO) offers are a time-tested strategy to increase sales and customer engagement. This popular type of coupon works exceptionally well for eCommerce stores, especially during seasonal sales or holidays when customers are actively seeking value-packed deals.

BOGO deals tap into the psychology of perceived value. Customers see these offers as an opportunity to get more for their money, triggering a sense of urgency to avoid missing out on a good deal. This often leads to quicker purchasing decisions, making BOGOs a powerful tool to boost holiday sales conversions.

3- First-Order Discounts

Converting a first-time buyer into a returning customer can be challenging. Often, such customers purchase something they like but have no intention of revisiting the eCommerce site. A first-time buyer discount can serve as a great way to thank them for choosing your store and entice them to return for more.

This eCommerce coupon strategy creates a sense of value and encourages first-time shoppers to engage with your store again, building loyalty over time.

4- Offering Free Shipping Discounts

Offering free shipping is a game-changer for eCommerce businesses, directly influencing customer behavior and driving higher sales. Research shows that shipping costs are among the top reasons customers abandon their carts.

Free shipping reduces the “pain of paying.” Customers feel they are getting more value for their money, as they aren’t burdened by additional costs. This sense of value can motivate them to shop more frequently and purchase higher-priced items.

One effective strategy is to provide free shipping on orders above a certain amount. For example, you could offer free shipping on orders over $50. This will make customers add more items to purchase to take advantage of the offer.

Removing the shipping cost gives shoppers one less reason to leave their carts, directly reducing cart abandonment rates.

5- Setting Minimum Order Discount Threshold

Giving discounts on orders above a certain amount will motivate customers to spend more. Customers often feel they are gaining more when they spend slightly extra to qualify for a discount, making it a win-win for both your store and the shopper.

It is also a great way to get revenue from your niche products. For example, customers might add niche or underperforming items to their carts just to reach the minimum order value. Therefore, this eCommerce coupon strategy not only boosts sales but also clears out inventory.

Analyze what your average order value is and decide the discount percentage. Setting up an achievable threshold increases the chance of customers upgrading their orders.

6-Abandoned Cart Discounts

Cart abandonment is one of the biggest challenges for eCommerce stores, with studies revealing that nearly 70% of customers leave before completing their purchase. This recurring issue directly impacts revenue, making it crucial for businesses to address effectively.

Offering abandoned cart coupons is a proven way to recover lost sales. These targeted discounts create an incentive for customers to return and complete their purchases. According to industry data, eCommerce businesses can recover up to 15-20% of abandoned carts with well-implemented coupon strategies. This not only boosts revenue but also improves customer retention.

8- Loyalty Discounts

You can reward loyal customers with exclusive offers through personalized emails. Include unique coupon codes that they can use to enjoy discounts, motivating them to make more purchases and recommend your store to others.

Referral programs further boost sales by turning customers into brand advocates. Customers can share your store with friends and family, earning referral discounts. This is a perfect opportunity to maintain existing customers as well as gain new customers.

Incorporating a loyalty points system fosters long-term retention and encourages repeat purchases, creating a cycle of customer engagement and satisfaction.

9- Hosting Flash Sales

It is unlikely that you are an eCommerce customer and have not received any emails about flash sales. A flash sale is a discounted sales offer that only lasts for a limited time. Customers will get exciting offers during this time.

This eCommerce coupon strategy makes use of a scarcity tactic to create a sense of urgency in customers, and most often, they are effective. You can either send emails informing the customers about the sale, add popups on the site, or both.

10- Exit-Intent Discounts

Many customers leave your store before reaching the checkout page, causing potential lost sales. An exit-intent popup is a powerful tool to capture their attention and offer last-minute incentives, like discounts and coupons, to keep them on your site.

Exit-intent popups detect when customers are about to leave and present them with exclusive deals to encourage them to stay and complete their purchases. For example, you can offer a 10% or 15% discount code in a popup as customers move their cursor toward the browser’s exit button. This simple discount strategy can help reduce cart abandonments and boost conversions.

11- Offer Seasonal Discounts

Holiday seasons are a great sales opportunity for your eCommerce store.

Customers are looking for a variety of products with great deals. So, just give them that. Offer attractive deals and discounts or holiday-special coupons to make them happy.

You must brainstorm the promotional plans well in advance and be ready to launch them before the holiday season hits.

For example, American retail brand REI offered a deal to save money for Black Friday:

12- Plan Clearance Sale

Sometimes, you need to clear your old stock or low-selling products to make room for new products. This is where you can offer clearance discounts. In clearance sales, you can offer heavy discounts to make people buy the products.

Clearance sales help manage the inventory and boost the sales of your store.

Here is an example:

13- Free Coupon or Gift Voucher with Purchase

Offering free coupons or gift vouchers with a purchase is a proven strategy to boost sales and enhance customer satisfaction. This approach not only incentivizes shoppers to complete their purchase but also encourages repeat business, setting your store apart from competitors.

To make the most of this strategy, ensure your free gift with purchase coupons is clearly promoted across your website, email campaigns, and social media channels. Use tools or plugins that automatically apply these offers at checkout to streamline the process for customers.

You cannot provide online store offers without proper planning. It is crucial to decide the right time and the right kind of offer.

Paying attention to your customers’ requirements is good; however, you should not forget your business goal while planning out these offers. One small slip may cost you a lot.

We hope these tips will help you. We would love to know what you think. Please share your experiences with us in the comments below.

If you are interested in reading about other common discount ideas to promote your store, give it a go.