If you don’t use digital coupons yet, this is your sign to start doing so.
Put yourself in the shoes of your customers: They’ve spent hours browsing your store, carefully selecting items to add to their carts. They’re excited about their choices, but as they reach the checkout page, something changes. Maybe it’s the final cost, shipping fees, or they just decide to postpone the purchase for later. The result? The cart sits there, abandoned and forgotten.
This scenario is all too familiar in the world of eCommerce, and it’s known as cart abandonment. But here’s the good news: you don’t have to let this happen to your online business, nor do you have to suffer the disappointment of walking away from your virtual shopping cart.
In this digital age, one powerful tool that can help you combat cart abandonment is the humble yet mighty “digital coupon.” These little snippets of savings can make a big difference in your online shopping experience.
So, what exactly is a digital coupon, and how can you use it to reduce cart abandonment? Let’s get started on this journey to put an end to your cart abandonment woes.
What is a digital coupon?
A digital coupon is a form of discount or offer that can be retrieved and used via a smartphone, tablet, or computer, often in the form of coupon codes.
Digital coupons offer a modern twist to traditional paper coupons, providing unparalleled benefits for consumers and businesses. These electronically transmitted or stored discount codes, similar to their paper counterparts, feature codes that can be redeemed during a purchase at online stores. While consumers enjoy the convenience and savings digital coupons offer, businesses also reap the rewards of increased sales and customer loyalty.
After all, digital coupons enable businesses to monitor and track customer behavior and preferences. This then allows them to target their promotional efforts more accurately. With digital coupons gaining traction, it’s no surprise that more and more retailers are jumping on the bandwagon to offer enticing deals and promotions.
Types of digital coupons
Digital coupons come in various forms, each designed to cater to different shopping preferences and experiences. Here are some common types you might want to explore:
1. Promo codes
Promo codes are alphanumeric strings or words that customers can enter during the checkout process to receive discounts, free shipping, or other promotions. Retailers often provide these codes as part of their marketing efforts or loyalty programs. They’re like the secret handshake of the online shopping world—unlocking savings with a few keystrokes.
E-coupons, short for electronic coupons, are digital versions of the traditional paper coupons that used to be clipped from newspapers or magazines. They’re often offered by retailers on their websites or through mobile apps. To use an e-coupon, shoppers typically click on it to activate the discount, and it’s applied automatically during checkout. Easy and convenient!
3. Cashback offers
Cashback offers give back to shoppers a percentage of their purchase amount—either as a refund or credit. Shoppers often find these promotions on dedicated cashback websites or as rewards from credit card companies. While not a coupon in the traditional sense, these can add up to significant savings over time—making them very attractive for online shoppers.
4. Online vouchers
Online vouchers are vouchers or certificates that shoppers can redeem for discounts or special deals. They may be offered by specific brands, retailers, or eCommerce platforms. These vouchers can cover a wide range of products or services.
5. Loyalty program rewards
Many businesses, especially subscription businesses, offer loyalty programs that reward frequent shoppers with digital coupons or discounts. Some brands tally points for every purchase and give customers the option to choose a reward, while some have rewards for specific milestones. These can include personalized offers based on shopping history and preferences. The more that customers shop, the more they save with these rewards.
6. Limited-time offers
Sometimes, online and app retailers will run time-sensitive sales or promotions, often linked to holidays, special events, or seasonal changes. While not exactly a type of coupon, these offers can act as a digital equivalent, encouraging customers to purchase while the deal is still hot.
Where do customers get digital coupons?
There are many ways for customers to get digital coupons. Some of the most popular ways include:
- Signing up for newsletters: Many online retailers offer exclusive deals and digital coupons to their newsletter subscribers. By subscribing, customers can receive these coupon codes directly in their inbox. In fact, more than 80% of Americans have signed up for a brand’s newsletter specifically to receive coupons.
- Joining loyalty programs: Loyalty programs often provide members with access to special digital coupons, tailored to their shopping habits. Plus, they may offer points or rewards that can be converted into discounts.
- Following brands on social media: Brands frequently share digital coupons and promotions on their social media accounts. Make sure to follow your favorite brands to stay updated on their latest offers.
- Checking retailer websites: Many of them display the available coupons prominently, so customers won’t miss out on potential savings.
How do digital coupons work?
Understanding the mechanics of digital coupons is essential so eCommerce businesses can make the most of them and reduce those dreaded cart abandonment rates.
Here’s how they typically function:
- Distribution: Retailers and brands distribute digital coupons through various channels. These can include their official websites, email newsletters, social media profiles, and mobile apps.
- Activation: Once customers find a digital coupon they’d like to use, they typically need to activate it. This might involve clicking on the coupon, entering a promo code at checkout, or following a specific link provided by the retailer. Some digital coupons don’t need to be activated and can be used straight away.
- Discount application: After activation, the discount or offer is applied automatically to the order. This could be a percentage discount, a fixed amount off your total, free shipping, or other promotions.
- Checkout: Customers can complete their online purchase as usual, and savings will be reflected in your final total. It’s that simple!
That being said, it’s crucial for business owners to understand the journey of acquiring and using digital coupons so they can further tailor the experience for both new and existing customers.
For new customers, digital coupons can be attractive and lead them to purchase from or visit a store for the first time. In fact, 86% of online shoppers are more likely to buy from a new brand because of a coupon.
Advantages of digital coupons for businesses
Digital coupons also offer numerous benefits for businesses. Let’s take a look at some of the advantages they provide:
- Increased sales: Digital coupons can entice customers to make purchases they might have otherwise postponed or abandoned, ultimately boosting sales for businesses. Upselling is another advantage, as businesses can offer discounts on higher-priced items to encourage customers to make more expensive purchases.
- Customer loyalty: Offering exclusive digital coupons to loyal customers can help strengthen their bond with your brand, encouraging repeat purchases.
- Targeted marketing: Digital coupons allow businesses to target specific customer segments based on their preferences, shopping history, and location, increasing the relevance of offers. This targeted approach can result in a rise in sales volume, as customers are enticed to purchase more.
- Cost-effective promotions: Digital coupons are often more cost-effective to distribute and manage compared to traditional paper coupons and print advertisements.
- Flexibility: Businesses can quickly adjust their digital coupon offers based on market trends, inventory levels, or promotional goals.
- Trackable Results: With digital coupons, businesses can monitor the performance of each promotion and understand which offers are most effective.
- Reduced cart abandonment: By providing discounts during the checkout process, digital coupons can significantly reduce cart abandonment rates.
Strategies to reduce cart abandonment using digital coupons
With 7 out of 10 carts being abandoned, it’s definitely an issue for eCommerce businesses. Digital coupons can play a significant role in reducing cart abandonment rates, ultimately leading to increased revenue and better customer retention. With the right strategies, these digital coupons can be your secret weapon to minimize abandoned shopping carts and increase your conversion rates.
Here are some effective strategies to help you do just that:
- Create exit-intent popups: Implement exit-intent popups that offer a digital coupon to shoppers when they are about to leave your site. This last-minute incentive can often change their minds and complete the purchase.
- Implement abandoned cart email reminders and sequences: Send automated cart recovery emails to customers who leave items in their carts. Include a digital coupon as an added incentive to entice them to return and complete their purchase.
- Set minimum purchase discounts: Offer digital coupons with minimum purchase requirements. This strategy encourages customers to add more items to their cart to meet the threshold and qualify for the discount.
- Offer cross-sell and upsell discounts: Suggest related or complementary products when customers view their cart. Offer digital coupons for these additional items to increase the average order value.
- Follow up with post-purchase coupons: Include digital coupons in the confirmation or thank-you page after a successful purchase. This can motivate customers to shop again sooner.
- Make it easy to view savings at checkout: Make the application of digital coupons as seamless as possible during the checkout process. Ensure that customers can easily find and apply their discounts without confusion.
Unleash the power of digital coupons
In the world of online shopping, cart abandonment is an all-too-common challenge that businesses face. But it doesn’t have to be an unsolvable problem. The use of digital coupons offers a dynamic solution to not only reduce cart abandonment rates but also create a win-win scenario for both shoppers and businesses.
Now, it’s your turn to put this knowledge into action. By embracing digital coupons, you can not only enjoy significant savings but also improve your online shopping experience and foster customer loyalty.
If you have questions or need further assistance with optimizing your customer experience, don’t hesitate to get in touch with LTVplus.