You can call them discount coupons, promotional codes or promo codes in short. The primary goal of an offer is to increase sales. At first it may sound that we are hitting on profits but in reality we are working on a strategy of less profit and more sales. You can offer percentage based discounts or fixed price discounts depending on your business requirements. These codes are a simple but powerful tool for businesses to increase sales, acquire new customers, and give away rewards to loyal customers. The only thing you need to work on is the marketing strategy that works. For example: you cannot keep discounts that harm your profit margins. Too many discounts make the product look cheap. In this article, we will help you understand how to increase sales using discount coupons.
Types of discount coupons
Before you begin, first of all, you need to understand the variety of discounts or the types of discount coupons you can use. If you want an ecommerce website, ask your development company about these. If you are ordering an ecommerce website design package with us, the discount coupon engine comes as standard.
Fixed Percentage
You can allow customers to use a coupon code to avail the offer discount. For example: you can offer a discount of 25% with these two options.
Total Amount
In this case, you give the customer a fixed percentage discount (let’s say 25%) on the total cart value irrespective of the cart amount. No minimum order value is applicable.
Minimum Order value
You can give a fixed percentage discount if the total cart value goes above a certain amount you decide.
Fixed Amount Discount
This is applicable when you want to offer a specific amount under these conditions.
No minimum order value
In the case of a fixed amount based discount, you need to be careful because your discount cannot increase the cart value. Unlike percentage where irrespective of the amount the customer will get only 25% less (of total), this can be a disaster. You cannot offer 1000 off on a product that costs 800. Make sure the product price is higher than the discount amount.
Minimum cart value
This one works perfectly fine. Customers consider the amount more than the percentage. For example: Fixed 1000 Off on all orders above 4000 may attract more attention than a simple 25% Off. The customer sees this as a 1000 flat reduction in total price but in the case of percentage, they either need to calculate the amount themselves or Add product to cart.
Product Specific Discount Coupons
Apart from the fixed amount and percentage discount, you can also offer product discounts. In this type of discount you can simply create a discount coupon to promote a specific product. For example: you can offer 50 percent off on a specific shirt irrespective of the number of items in the cart. These discounts encourage customers to buy the product. You can use this in case of a product that is new on store and customer reviews are not available. With sales, customer feedback may come and you can start selling back again on the actual price you want.