{"id":18488,"date":"2020-02-24T13:57:13","date_gmt":"2020-02-24T19:57:13","guid":{"rendered":"https:\/\/theboutiquehub.com\/?p=18488"},"modified":"2020-02-24T13:57:15","modified_gmt":"2020-02-24T19:57:15","slug":"3-killer-e-commerce-promo-code-best-practices","status":"publish","type":"post","link":"https:\/\/theboutiquehub.com\/blog\/3-killer-e-commerce-promo-code-best-practices\/","title":{"rendered":"3 Killer E-Commerce Promo Code Best Practices"},"content":{"rendered":"\n

In this article, we\u2019re talking about 3 killer e-commerce promo code best practices instead of why you don\u2019t want to go the standard route with coupons.<\/p>\n\n\n\n

Everyone loves a good deal. But are you using the truly profitable e-commerce promo code best practices for your Shopify store?<\/p>\n\n\n\n

Good deals attract customers. That\u2019s why sales and promotion advertisements get sent out like wildfire by big retailers.<\/p>\n\n\n\n

In the past decade, it\u2019s been easier than ever to create an eCommerce store. But also, to take advantage of some of these same strategies that retailers use. Especially with Shopify.<\/p>\n\n\n\n

One of those strategies is the coupon.<\/p>\n\n\n\n

But does it do more harm than good?<\/p>\n\n\n\n

\"Haus<\/figure><\/div>\n\n\n\n

Pretend for a moment that you\u2019re shopping on this site.<\/p>\n\n\n\n

What\u2019s the first thing you think when you see the \u2018Gift card or discount code\u2019 box?<\/p>\n\n\n\n

If you\u2019re like most people, you start hunting for a coupon. Because you now know it\u2019s a possibility to get a lower price.<\/p>\n\n\n\n

This happens very often with some retailers. So often, that a Google search of their name tends to be suggested by Google with the word \u2018coupon\u2019.<\/p>\n\n\n\n

\"haus<\/figure><\/div>\n\n\n\n

Let’s talk about a few reasons why you don\u2019t want to go the standard route with coupons and the 3 e-commerce promo code best practices to follow.<\/p>\n\n\n\n

And more, how to offer it the right way.<\/p>\n\n\n\n

Problems with Using Promo Codes<\/h2>\n\n\n\n

1) Potential Affiliate Fees<\/h3>\n\n\n\n
\"Potential<\/figure><\/div>\n\n\n\n

Say a customer comes to your Shopify store with a coupon code. There\u2019s a percentage you have to pay if you use a coupon site or an affiliate\u2019s code.<\/p>\n\n\n\n

This isn\u2019t that bad. Considering you might not have had the sale in the first place. If your affiliate didn\u2019t send traffic your way.<\/p>\n\n\n\n

But the customer may still have to enter the code. Which may lead them to think, \u201cWhat if there\u2019s a better code?\u201d<\/p>\n\n\n\n

2) Training the visitor to expect a deal each time<\/h3>\n\n\n\n
\"Training<\/figure><\/div>\n\n\n\n

We\u2019ve talked in-depth about how offering discounts can be like cocaine for your store\u2019s health.<\/a><\/p>\n\n\n\n

It feels good for the moment. But then you start training your customer base to need a bigger discount. Any time they want to buy something.<\/p>\n\n\n\n

With that being said, gamification can be a solution. We\u2019ll talk about that shortly.<\/p>\n\n\n\n

Discounts can be great. But what you don\u2019t want to do is to train your customers that the next sale is only around the corner. So, they hold off on buying from you until your next \u201cflash sale.\u201d<\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

This is on top of another epidemic. Black Friday\/Cyber Monday.<\/p>\n\n\n\n

\u201cEpidemic? But Bradley, that\u2019s when I get so many of my sales!\u201d<\/em><\/p>\n\n\n\n

You see, every year retailers amp up Black Friday\/Cyber Monday more and more. And every year, we train customers to shop during that window of time in Q4.<\/p>\n\n\n\n

Despite having the surge of sales in that period, it doesn\u2019t increase<\/strong> the entire Q4 revenue. It just concentrates<\/strong> it on the BFCM time period.<\/p>\n\n\n\n

On top of that, retailers discount so heavily that it devours their margins.<\/p>\n\n\n\n

Then what about customer acquisition costs? The cost of ads and the time spent planning spike up because everyone is doing the same thing. Having a BFCM sale.<\/p>\n\n\n\n

3) Finding a better deal at another store<\/h3>\n\n\n\n
\"Finding<\/figure><\/div>\n\n\n\n

A study conducted by PayPal and comScore<\/a> revealed an interesting fact. 27% of participants would abandon their cart. Why? To search for a discount code.<\/p>\n\n\n\n

Is there an option to enter a coupon code? Then you\u2019re pretty much promising the customer that there\u2019s an opportunity to save money with you.<\/p>\n\n\n\n

When you trigger this coupon hunting, you also tend to trigger comparison shopping. They find a better deal at another store and not buy with you at all.<\/p>\n\n\n\n

What\u2019s a Shopify store owner to do?<\/p>\n\n\n\n

E-commerce Promo Code Best Practices for Your Shopify Store<\/h2>\n\n\n\n

1) Stop using discount codes<\/h3>\n\n\n\n
\"Using<\/figure><\/div>\n\n\n\n

In case you were thinking all this was more trouble than it was worth. We\u2019re going to play devil\u2019s advocate. We\u2019ll explain why stopping discount codes altogether isn\u2019t the best choice either.<\/p>\n\n\n\n

Coupon codes aren\u2019t only for coupon sites to harvest and be something hunted down by cheapskates.<\/p>\n\n\n\n

Practical Ecommerce<\/a> analyzed 100 blog posts. These generated high traffic for a retail client of theirs. Over 50% of these posts featured a coupon code.<\/p>\n\n\n\n

\u201cI\u2019ve seen blogs generate upwards of 20% of a retailer\u2019s new customers. While blog traffic does take time for a retailer to build, the investment is worth it in terms of new customer acquisition.<\/em><\/p>\n\n\n\n

And, as I saw from our quick study of those 100 posts, offering bloggers a coupon code \u2014 with an affiliate link in the code \u2014 is a good way to get coverage of your brand.\u201d<\/p>\n\n\n\n

When you have a relationship with a blogger. Who becomes an affiliate, who can reach a market that already trusts them, it\u2019s a win-win-win.<\/p>\n\n\n\n

2) Pre-discounted links<\/h3>\n\n\n\n
\"Happy<\/figure><\/div>\n\n\n\n

Shopify has implemented a way to natively apply a coupon code via a shareable link<\/a>.<\/p>\n\n\n\n

The ideal way would be to hide the box if the visitor arrives at your site through one of these links.<\/p>\n\n\n\n

The discount gets applied and thus there\u2019s no reason to show the coupon box.<\/p>\n\n\n\n

But, there\u2019s no way to hide the coupon box when directed to your store this way without extra coding.<\/p>\n\n\n\n

3) Using self-hosted and self-promoted coupons<\/h3>\n\n\n\n
\"Self-promoted<\/figure><\/div>\n\n\n\n

Creating a page of coupons and sharing them with customers is a big retailer strategy.<\/p>\n\n\n\n

Macy\u2019s will let you find a promo code that matches your cart\u2019s items<\/p>\n\n\n\n

\"Promo<\/figure>\n\n\n\n

Macy\u2019s reported that 40% of the visitors to their special Promotions page ended up converting in the same session.[*<\/a>]<\/p>\n\n\n\n

\"Kohl<\/figure>\n\n\n\n

Kohl\u2019s offers coupons in a very similar style to Macy\u2019s at the checkout.<\/p>\n\n\n\n

\"Harbor<\/figure>\n\n\n\n

Harbor Freight has a weekly physical and digital mailer of coupons. As well as a dedicated part of their site to coupons that can be currently used.<\/p>\n\n\n\n

Not only does this help keep customers on your website for their session. It builds customer trust.<\/p>\n\n\n\n

What Should I Do?<\/h2>\n\n\n\n
\"question\"<\/figure><\/div>\n\n\n\n

It\u2019s difficult to account for all variables in split-testing coupon code methods. And say for certain that, yes, this is the best way to do it for my Shopify store.<\/p>\n\n\n\n

There\u2019s a lot more to it.<\/p>\n\n\n\n