Increasing customer conversions is the main goal of eCommerce retailers, especially at a time when it’s becoming harder to convince consumers to commit to their purchase. Vouchers, such as discount codes, can help secure a customer purchase.
But why are vouchers so important? Surely giving out discount codes means your business is losing money, right?
Wrong! This couldn’t be further from the truth. Vouchers provide numerous benefits to your business, as it incentivises customers to complete purchases, spend more and it encourages new customers to buy from you.
In this article, we’ll explain why vouchers are so effective in increasing customer conversions and help grow your brand.
Vouchers help customers complete purchases
No matter what products or services your business sells, it’s more than likely that shopping cart abandonment is a serious pain point for you. Don’t worry, you’re not alone. Most online retailers consider this a serious issue. In 2019, the global average shopping cart abandonment rate is 75.6%, and for some industries, it’s significantly higher.
That’s a lot of revenue to lose. But don’t worry, it can be clawed back — and voucher codes can help you to do this in a number of ways.
Most of the time, shoppers abandon their carts because they feel that they can get a better deal elsewhere. Voucher codes help customers to realise that they already have the best deal on the market in their shopping cart. What’s more, with the right software you can add time limits to discount codes which will help lower checkout page bounce rates and get hesitant customers off the fence.
One potential sticking point for voucher codes is the fact that they can become vulnerable to misuse. If vouchers are leaked they may become used by people for whom they are not intended. While there are ways to mitigate this, the right software can help you out here once again. You should invest in software that will create unique, single-use voucher codes which will ensure you’ll never need to worry about your vouchers being abused!
Vouchers work to convert new customers
According to the Harvard Business Review, it can be anywhere between 5 to 25 times more expensive to acquire new customers than to attain existing ones. And anything you can do to lower this cost can go a long way towards sustained and organic growth for your business.
The great thing about vouchers is that they can take a lot of the time, effort and expense out of attracting new customers to your business. The promise of a generous discount can go a long way toward counteracting the hesitation that many consumers feel when it comes to trying out a new brand. As it happens, 57% of shoppers are motivated to complete a first-time purchase when they are able to redeem a coupon.
Know your goals
As in any aspect of business, the key to success is having clear and measurable goals. The way in which you approach voucher codes will depend on those goals. If, for example, you’re simply trying to raise brand awareness and help new prospects to find your brand, leaking vouchers may not be that big of a deal for you.
On the other hand, if you want to stay in control of the codes you distribute, unique single-use codes can certainly give you a competitive advantage. They lend themselves very well to all forms of distribution including:
- Traditional direct marketing
- Email marketing
- Influencer marketing — where you give codes to social media influencers who can then share them so that their audience finds your brand.
A single-use promo code generator will allow you to create unlimited new codes as and when needed, so that discounts can only be accessed by their intended recipients.
No matter how you choose to give out your codes, when a new customer makes a purchase from you, they give you a chance to create a positive experience for this customer. This will make them predisposed to become a returning customer who will remain loyal to your brand. Which brings us very neatly to…
Vouchers increase brand loyalty
To grow your business you need to keep two consecutive plates spinning. You need to attract a steady stream of new customers while also ensuring that your existing clientele keeps coming back. Fortunately, voucher codes enable you to do both!
By offering exclusive discounts to loyal customers, you’re reminding them that you value them, and continuing to build value in your brand. Not only can voucher codes be leveraged to keep customers coming back to you, they can help you turn loyal customers into brand evangelists.
The personal touch
Voucher codes are at their most effective when customers feel that they’re getting a special treat that’s just for them. Personalisation and exclusivity are valuable commodities in the world of voucher marketing, and there are a number of ways in which this can be achieved.
Email marketing, for example, can be an effective way of distributing personalised voucher codes. When a customer has already made a purchase from you, you can use analytics tools to bring them personalised codes based on their purchase or browsing history. This means that the voucher has inherently more value to them and increases their chance of using it, thus making a repeat purchase.
Unique, and just for you!
As well as insulating you from the risk of being leaked and misused, single-use promo codes are completely unique. This in and of itself has value. It helps customers feel more like they’re getting something for them and only for them.
You can increase the value inherent in this by sending customers these vouchers at times that are meaningful for them. For example, you could send customers a special treat on their birthday or send them a unique voucher code to celebrate the anniversary of their first purchase from you.
It’s a nice little touch that can really strengthen the customer’s relationship with your brand.
BONUS: Vouchers help customers spend more
Of course, there’s more to voucher codes than increasing conversions. They also provide brands with the added bonus of helping them to increase revenue by encouraging customers to spend more.
While you may be taking a small hit on your profit margins by using voucher codes, the revenue opportunity that they provide can more than counteract this.
Studies show that shoppers are likely to spend more money if they know they’re getting a great deal out of it. And with the knowledge that they can’t get a better deal elsewhere comes tremendous opportunity for upselling.
One study in the US found that families who clipped coupons actually spent more. It demonstrated that families who don’t clip coupons spend an average of $0.51 on soup. When a coupon was offered, however, they spent an average of $0.66. While this might not seem like much at first glance, that’s actually a 30% increase in sales. Extrapolate that across your product range and consumer base and you could have a great formula for generating revenue.
Fun and games
You can even gamify voucher codes by combining them with spending goals. This gives customers an increased sense of reward. Another way customers spend more with vouchers is if you offer vouchers with spending goals.
For example, if you offer a customer a £10 discount on £50 worth of products, that same customer who was going to originally spend £35 is better predisposed to spend an additional £15 in order to reach the threshold and obtain an additional discount.
In actuality, the customer has now spent £5 more than they had planned. This is an extremely useful tactic that many brands use for clearance items, impulse purchase items and high-margin products. More value and reward for the customer, more revenue for the business. Everyone’s a winner!
Customers demand voucher codes. So, give them what they want!
In an era where competition is more rife than ever, consumers know that they can afford to be fickle. They know that they can afford to hold out for great deals and won’t entertain brands that aren’t prepared to offer them.
Give customers what they want, and everyone wins.
When you give new and repeat customers exclusive and/or personalised discount codes, they feel valued and are more likely to keep coming back and introducing their peers to your brand.
For a truly effective voucher campaign, you need to offer unique promotions that make customers feel like they’re getting exclusive and rare deals that are tailored to their needs. That means investing in a tool like a single-use promo code generator. This will allow you to generate as many unique codes as you need, whenever they’re needed.
Not only that, you can track how that code is used. A sophisticated yet easy to understand array of analytics can help you to improve your future promo campaigns by personalising your customers’ shopping experiences, increasing their likelihood to buy from you.
Sounds like a lot of hard work, doesn’t it? But the right software makes it easy! These kinds of generators can integrate into your existing CRM and automate the process of creating these unique promo codes. No chance of leaking and no need to monitor.
These methods can help you give your customers the great deals they crave while streamlining your operations to keep those margins up!