Episode 25 of eCommerce Uncensored is the third installment of a 5 part miniseries detailing “5 techniques that can grow your eCommerce sales by 50%”. In this episode, Kevin and Jason of Fast Forward Unlimited give you Technique #3 and tell you why and how you should use coupons to increase profit.
First off to the naysayers-by offering a coupon you are not degrading your product value. A visitor to your site that doesn’t complete the purchase, doesn’t join your mailing list, is gone forever. But if you provide that same person with a little incentive, you now have a customer.
Your profit margins on a first purchase are going to be much lower once you take in all the customer acquisition fees, so if you consider a coupon discount as part of customer acquisition, you’re in the right mindset. It’s all the subsequent purchases that that customer makes that will bring you the increase in revenue.
Some tips for incorporating coupons:
- Use a pop-up window to gain an email address: Use the promise of a coupon code to get the visitor to give you their email address. Make it seem like the code will be coming to the email account but actually give them the code right then and there so they complete the purchase. If you are not sure why email capture is important for your eCommerce site definitely check out Episode 23.
- Set a coupon expiration: with a coupon that needs to be used before it expires you are creating a sense of urgency and encouraging them to complete the purchase right away.
- Limit the coupon to “First Time Customers”-remember, the discount is a customer acquisition fee.
- Have your funnels in place: be sure you your system of retargeting, upsells, downsells, etc are in place to optimize revenue and repurchasing rates.
The guys will share Technique #4 to growing your eCommerce revenue in their next podcast. If you can’t wait that long, click here to download a copy of our FREE eBook, “5 Proven eCommerce Techniques to Instantly Grow Sales by Up to 50%”.
If you have any questions about this podcast or any other eCommerce topics we’d love to help you out you can email Kevin at [email protected], Jason at [email protected] or schedule a free call with us here: Schedule a Free 30 Minute Call