November 27, 2015 at 11:53Strategies for using promotional codes for online stores
A promotional code is one way to attract a customer to an online store. At a discount, the “cold” visitor is more likely to make the first purchase, while the “experienced” one will make the second one. Coupons help to increase loyalty , attract mobile users . In the end, people just like gifts, and promotional codes are perceived by them exactly as full-fledged gifts. This "Black Friday" we want to talk about how to use promotional codes in e-commerce.
Director of Development of the project "Promokodabra" Ani Baghdasaryan tells how to use the four modes of online store can earn more by using coupons and promotional codes.
Is the New Year coming? The store independently launches special New Year discounts. March 8? Discount for all women.
The online store is attached to events and arranges special promotions.
Pros:
Increases loyalty. Any buyer is pleased to receive a discount. Especially the fact that he was going to get it.
New customers. Promotional codes promote themselves. As you know, from the beginning of the 20th century to this day, word of mouth is one of the most effective marketing tools to attract loyal users. People like to tell friends about how they managed to save on buying Prada bags or Samsung plasma. Most often, this is how your potential customers will learn about how to profitably purchase goods in your store.
Minuses:
Limited resources. All that the store has in this situation is its standard channels: newsletter, organic traffic on the site, communities on social networks. Yes, social networks will spread the share, but not so actively as to increase sales by several times.
It is necessary to disseminate information through the media, which takes a lot of time and resources. Almost no media or website will just publish the news about the appearance of coupons or sales, and here not only long and painstaking work, but also financial investments are often necessary.
The online store may not pay attention to high-profile news feeds and periodically create promotional codes and give out coupons to its subscribers. For example, one of the stores to improve the conversion offered a coupon for the product that was already in the basket at the buyer. This is an effective call to action that will force the user to complete the transaction. The second example is increasing loyalty with coupons. You offer a second coupon. Thus, the buyer is more likely to return to you after the first.
Pros :
Any discount is an increase in loyalty. In addition, getting a promotional code for no reason is more pleasant.
A small effect of surprise. If the store hangs up a banner on the site at a discount, then the user receives a small surprise and uses it with pleasure.
Cons:
Zero virality. Nobody will talk about the coupon received from the banner on the website or from the post on Facebook. Take the example of a coupon for a product in a basket - it is unlikely that anyone will share it, especially since for another user it may not work at all. If you are doing a spontaneous action, then you need to additionally and very efficiently work out the virality of the action.
Nobody will just know that you have made a huge sale if you don't talk about it. As in the first case, a long communication with media resources is necessary.
Spontaneous promotions and discounts must be handled carefully - if there are too many of them, then users can get used to regular sales and out of their actions they will buy less. It is necessary to weigh each such action and understand its long-term consequences.
The online store is being included in an ongoing campaign dedicated to an external event. For example, by the current Black Friday. For this, the store becomes a partner of one of the aggregators. These are sites that collect all offers and promotional codes for a particular holiday or occasion.
Pros:
Big sales. If we are talking about a major sale, then users are actively spending money. For example, on “Black Friday” in 2014, traffic on the page with discounts on “Promojdabr” increased by 708%, and sales increased by 79%.
Snap to time. All potential buyers know that on a certain day they will receive a discount, so be sure to go to the site. As a rule, aggregators sign up for notifications by mail, so it’s rather difficult to miss such a sale.
Maximum virality. Users will talk more about a page with hundreds of discounts than about a promotional code for a single product. For example, all the same "Black Friday" - an information guide in itself. Media writes about it, they share links to it long before the start.
People get used to the date and learn to shop. For example, last year, only 41% of Russians intended to take part in Black Friday, and this year the vast majority are already. This can be used and in the future not to be attached to this date, to do “Black Thursdays”, “Cyber Tuesdays”, etc. stocks that will independently affect consumers.
Minuses:
Unscrupulousness of some aggregators. The organizer of a large campaign needs to be selected carefully, first it is better to read reviews. It happens that the aggregator has promotional codes on the site not by the level of discounts, but by the size of the commission paid by a particular store. It turns out that the client who provides the maximum discount can get to the very bottom of the list and get many times less customers than expected. Then the discount just does not pay off. At the same time, companies that are not ready to pay a frantic amount for participation or those with a low commission will be “in transit”.
High expectations. If the aggregator loudly declares that “discounts are from 70%”, and the store gives a promotional code only by 60%, the reputation will suffer. Customers will go to the site in search of discounts from exactly 70% - because they were so promised. And not every store can afford such a discount, especially for goods that buy the most.
Aggregate sites experience peak loads during peak sales and often simply cannot cope with the influx of customers.
An online store can think through its strategy in advance. Choose high-profile information campaigns, negotiate with aggregators, and during periods of calm raise sales by your own campaigns with special promotional codes.
The company can either develop a strategy itself, faced with all the difficulties of lack of information about user behavior, lack of distribution channels, etc., or appeal to those who are professionally engaged in such strategies.
Pros:
Clear goals. If the store traditionally falls in September, you can set a goal in advance to avoid a recession and prepare a campaign.
Multiple loyalty. If a visitor to the site knows that the store regularly holds promotions and sales, then he will visit more often to get the desired discount.
Use promotional codes only when needed. The online store teaches users to rejoice at the discount received, to feel it as a gift, and not to take it for granted - the buyer continues to consider the price fair and does not believe that the store should provide discounts all the time.
Flexible strategy. If you plan campaigns in advance, you can test promotional codes and improve your strategy in the shortest possible time, since a team of analysts and testers, professionals in the field of promotional codes will work for you.
The constant influx of new users. Customers appear not only on the last Friday of November, but throughout the year. Especially when there is usually a recession. In addition, coverage will constantly increase.
Individual approach. Professionals will offer a strategy that is tied to a particular online store, depending on its goals and needs. The rules will be dictated by the store, not the site aggregator.
Cons:
It is possible to work with unscrupulous webmasters who do not help in the development of the strategy, are unprofessional in partnership and in every possible way are cunning just to get a big commission. In addition to aggressive SEO strategies, many sites load inactive promo codes with active links to maximize clicks. Therefore, it often turns out that such sites bring the store 1000 clicks per day, but with zero conversion due to the low quality of offers and the inconvenience of the aggregator site.
This channel also requires constant monitoring so that promotional codes do not fall into other aggregators and do not have a situation of uncontrolled distribution of coupons.
A small number of new customers. Yes, there will be more customers, but not at times.
As you can see, even such a seemingly simple area as promotional codes requires a thoughtful and serious approach. It is quite possible that not promotional codes will work for you, but you for them. It is always necessary to carefully weigh different strategies and understand what advantages and disadvantages are behind them. We tried to describe the most common and interesting ones - the choice of the right promotional code is up to you.
Director of Development of the project "Promokodabra" Ani Baghdasaryan tells how to use the four modes of online store can earn more by using coupons and promotional codes.
1. Response to news feeds
Is the New Year coming? The store independently launches special New Year discounts. March 8? Discount for all women.
The online store is attached to events and arranges special promotions.
Pros:
Increases loyalty. Any buyer is pleased to receive a discount. Especially the fact that he was going to get it.
New customers. Promotional codes promote themselves. As you know, from the beginning of the 20th century to this day, word of mouth is one of the most effective marketing tools to attract loyal users. People like to tell friends about how they managed to save on buying Prada bags or Samsung plasma. Most often, this is how your potential customers will learn about how to profitably purchase goods in your store.
Minuses:
Limited resources. All that the store has in this situation is its standard channels: newsletter, organic traffic on the site, communities on social networks. Yes, social networks will spread the share, but not so actively as to increase sales by several times.
It is necessary to disseminate information through the media, which takes a lot of time and resources. Almost no media or website will just publish the news about the appearance of coupons or sales, and here not only long and painstaking work, but also financial investments are often necessary.
2. Spontaneous promotions and discounts
The online store may not pay attention to high-profile news feeds and periodically create promotional codes and give out coupons to its subscribers. For example, one of the stores to improve the conversion offered a coupon for the product that was already in the basket at the buyer. This is an effective call to action that will force the user to complete the transaction. The second example is increasing loyalty with coupons. You offer a second coupon. Thus, the buyer is more likely to return to you after the first.
Pros :
Any discount is an increase in loyalty. In addition, getting a promotional code for no reason is more pleasant.
A small effect of surprise. If the store hangs up a banner on the site at a discount, then the user receives a small surprise and uses it with pleasure.
Cons:
Zero virality. Nobody will talk about the coupon received from the banner on the website or from the post on Facebook. Take the example of a coupon for a product in a basket - it is unlikely that anyone will share it, especially since for another user it may not work at all. If you are doing a spontaneous action, then you need to additionally and very efficiently work out the virality of the action.
Nobody will just know that you have made a huge sale if you don't talk about it. As in the first case, a long communication with media resources is necessary.
Spontaneous promotions and discounts must be handled carefully - if there are too many of them, then users can get used to regular sales and out of their actions they will buy less. It is necessary to weigh each such action and understand its long-term consequences.
3. Participation in a large campaign
The online store is being included in an ongoing campaign dedicated to an external event. For example, by the current Black Friday. For this, the store becomes a partner of one of the aggregators. These are sites that collect all offers and promotional codes for a particular holiday or occasion.
Pros:
Big sales. If we are talking about a major sale, then users are actively spending money. For example, on “Black Friday” in 2014, traffic on the page with discounts on “Promojdabr” increased by 708%, and sales increased by 79%.
Snap to time. All potential buyers know that on a certain day they will receive a discount, so be sure to go to the site. As a rule, aggregators sign up for notifications by mail, so it’s rather difficult to miss such a sale.
Maximum virality. Users will talk more about a page with hundreds of discounts than about a promotional code for a single product. For example, all the same "Black Friday" - an information guide in itself. Media writes about it, they share links to it long before the start.
People get used to the date and learn to shop. For example, last year, only 41% of Russians intended to take part in Black Friday, and this year the vast majority are already. This can be used and in the future not to be attached to this date, to do “Black Thursdays”, “Cyber Tuesdays”, etc. stocks that will independently affect consumers.
Minuses:
Unscrupulousness of some aggregators. The organizer of a large campaign needs to be selected carefully, first it is better to read reviews. It happens that the aggregator has promotional codes on the site not by the level of discounts, but by the size of the commission paid by a particular store. It turns out that the client who provides the maximum discount can get to the very bottom of the list and get many times less customers than expected. Then the discount just does not pay off. At the same time, companies that are not ready to pay a frantic amount for participation or those with a low commission will be “in transit”.
High expectations. If the aggregator loudly declares that “discounts are from 70%”, and the store gives a promotional code only by 60%, the reputation will suffer. Customers will go to the site in search of discounts from exactly 70% - because they were so promised. And not every store can afford such a discount, especially for goods that buy the most.
Aggregate sites experience peak loads during peak sales and often simply cannot cope with the influx of customers.
4. Permanent coupon strategy
An online store can think through its strategy in advance. Choose high-profile information campaigns, negotiate with aggregators, and during periods of calm raise sales by your own campaigns with special promotional codes.
The company can either develop a strategy itself, faced with all the difficulties of lack of information about user behavior, lack of distribution channels, etc., or appeal to those who are professionally engaged in such strategies.
Pros:
Clear goals. If the store traditionally falls in September, you can set a goal in advance to avoid a recession and prepare a campaign.
Multiple loyalty. If a visitor to the site knows that the store regularly holds promotions and sales, then he will visit more often to get the desired discount.
Use promotional codes only when needed. The online store teaches users to rejoice at the discount received, to feel it as a gift, and not to take it for granted - the buyer continues to consider the price fair and does not believe that the store should provide discounts all the time.
Flexible strategy. If you plan campaigns in advance, you can test promotional codes and improve your strategy in the shortest possible time, since a team of analysts and testers, professionals in the field of promotional codes will work for you.
The constant influx of new users. Customers appear not only on the last Friday of November, but throughout the year. Especially when there is usually a recession. In addition, coverage will constantly increase.
Individual approach. Professionals will offer a strategy that is tied to a particular online store, depending on its goals and needs. The rules will be dictated by the store, not the site aggregator.
Cons:
It is possible to work with unscrupulous webmasters who do not help in the development of the strategy, are unprofessional in partnership and in every possible way are cunning just to get a big commission. In addition to aggressive SEO strategies, many sites load inactive promo codes with active links to maximize clicks. Therefore, it often turns out that such sites bring the store 1000 clicks per day, but with zero conversion due to the low quality of offers and the inconvenience of the aggregator site.
This channel also requires constant monitoring so that promotional codes do not fall into other aggregators and do not have a situation of uncontrolled distribution of coupons.
A small number of new customers. Yes, there will be more customers, but not at times.
conclusions
As you can see, even such a seemingly simple area as promotional codes requires a thoughtful and serious approach. It is quite possible that not promotional codes will work for you, but you for them. It is always necessary to carefully weigh different strategies and understand what advantages and disadvantages are behind them. We tried to describe the most common and interesting ones - the choice of the right promotional code is up to you.