Every customer sets out to get a good deal, which is why it’s no surprise that 93% of shoppers use a coupon or discount code at some time throughout a year of shopping. Coupons can be a great way for businesses to persuade new customers to try out their products and services without feeling like they have to fully commit. As they aren’t paying full price for the business’s offerings, customers are more likely to see the goods and services offered as good value.
What are Coupons?
Coupons are used as digital or physical vouchers that allow customers to redeem a discount. Businesses often use coupons as a way to reward loyal customers, or to incentivize higher sales (such as a coupon for $5 off when you spend $50). Coupons can give customers a discount in two ways: either as a percentage discount off a purchase, or a lump sum value discount, such as $5 off any purchase.
Although coupons were initially introduced in the form of small paper vouchers, many ecommerce businesses have adopted them via creating online codes that can be used at checkout. Both in-store and online, coupon codes have become a common sales strategy.
How Can I Use Coupons for My Business?
Coupons can be used as a sales strategy in a number of ways. As there are a range of customization options with coupons, they can fit the needs and aims of your business. An example of this could be the following: your company has a surplus of stock for a seasonal product, such as Easter eggs. To ensure that large losses are not made, your company could introduce a coupon for these Easter eggs that includes an expiry date. This way, customers are incentivized not only to buy more eggs, but also to do so before the set expiry date, and therefore, before the Easter holiday ends.
Using coupons in a subscription business can be a great way to encourage customers to continue their subscription each billing period. A common strategy amongst subscription businesses has been to offer one month (or one billing period) for free, so that customers opt to continue their subscription. Alternatively, some companies choose to offer an increasing discount the longer somebody remains a customer (for example, after your 1st year you receive 5% off the subscription price, after 2 years it’s 10% for the following year’s subscription, etc), or periodical loyalty incentives (3rd month 10% off your subscription value, 7th month $10 off etc). Customers are more likely to become loyal as they feel like they are getting a great deal.
Coupons can also act as an incentive for customers to upgrade their subscription, or to add on something to their selected subscription package. With coupons, customers can experience different subscription combinations and packages for a cheaper price- this opens up the potential for customers to then decide to upgrade their subscription permanently.
How Billforward Supports Using Coupons
Billforward allows your business to create and use coupons either as a lump sum discount or as a percentage discount. That way, your business can decide on the discount style that best suits your offerings. Billforward also offers you a choice of “master” or one-time-use, individual coupons (example: WINTER20 vs WINTER20i8wjd95h2k). You can find out more about how Billforward allows you to create and use coupons in our knowledge article: Coupons (billforward.io)
Why not book a discovery call with one of our billing experts and see how we can help you meet your subscription goals!