Skip to main content

Advantages and Disadvantages of using Vouchers in eCommerce

Information Technology Blog - - Advantages and Disadvantages of using Vouchers in eCommerce - Information Technology Blog

To decide whether vouchers and coupons are the right tool to add to your online marketing strategy, it is essential that you consider the benefit and the cost of using coupons.

In this article, we will use Gtech coupon marketing strategy as an example a successful coupon strategy.  Also check out these great books on coupon codes for ecommerce.

Advantages of Using Coupons

Increase Sales

This is the obvious benefit. Coupons serve to increase sales especially for high ticket items such as luxury gadgets. Gtech discount codes is a good example as Gtech quality is reflected on the price of both the Gtech eBike and Gtech AirRam. In order to boost sales, the company releases 10% off offers certain times of the year when online sales would normally be low.

Enlarge Email List

Acquiring a customer can be expensive in terms of advertising and marketing. If you manage to sell to the same customer multiple times this improves your term on your advertising investment. It is essential to capture first-time visitor email address so that you upsell them and cross-sell them in the future. One way to do that is to ask visitors to provide their details (email address and name) in exchange of a generous coupon. At gtech.co.uk you will receive a special code via email if you provide your name and email address.

Remove Barriers

Psychologically, limited-time coupons is a smart way to remove financial barriers affecting customers’ decision making. Often Gtech promo codes are used in this way: “Here is 10% off, valid till 5pm today”

Disadvantages of Using Coupons

Risk on Brand Iimage

Discount codes may have a negative impact of your brand image. Discount coupons may make your company look cheap. The risk is bigger to luxury brands such as Gtech. One way to counteract the risk of damaging your brand is to maintain the price of the core product as is, while offering coupons on the extra items. Gtech discount codes, for example, give you free shipping within the UK. When the company offer shipping for free, there is no discount on the main product.

Risk of Making a Loss

Discount codes might prove to be costly and end up reducing your profit margins. The only way to skirt this issue is by knowing what you can reasonably afford to discount. Sometimes, your product might not carry the margin required to provide a coupon. For instance, if Gtech’s cleaners sell for £199 and it costs the company £100 to pay the manufacturer, plus £50 in marketing and operating costs per unit, then issuing 25% off Gtech codes would mean that the company makes a loss.

Reduced Revenue

If you give a discount to all clients, even to those who would still buy at full price, you effectively reduce profits from all sales. A good way to market coupons is to offer them to new customers, or to select customers on special occasions.

For example, using social media, you can connect personally with potential clients and offer them generous discounts via Messenger on their birthday. Alternatively, you can wish them happy birthday on their Timeline together with a coupon or link to a special offer. This is even better than Messenger because other people get to see the offer and your brand.

Overall, you can avoid the above disadvantages, and maximize the benefits of coupons, when you use coupons on a personal level. For instance, added to the right social media platform, discount codes are quite effective in developing long-lasting relationships with clients – individually rather than massively;

“Hi Liz, Here is 20% off coupon. Use “LIZ40″ and save £40 on us –valid today. Happy Birthday!”

If you can get to the level where you send a message to a customer like that then you have customers for life.

Lessons from Gtech Voucher Marketing. The author has been in the coupon business for over 6 years and have worked with hundreds of Merchants in the promotion and marketing of their voucher codes.  

Also check out these great books on coupon codes for ecommerce.

Originally posted 2017-09-18 21:26:43. Republished by Blog Post Promoter

The post Advantages and Disadvantages of using Vouchers in eCommerce appeared first on Information Technology Blog.



Udimi - Buy Solo Ads from Information Technology Blog https://ift.tt/2w3xnHf
via IFTTT
Labels:

Comments

Post a Comment

Popular posts from this blog

9 VCs in Madrid and Barcelona discuss the COVID-19 era and look to the future

Spain’s startup ecosystem has two main hubs: Madrid and Barcelona. Most observers place Barcelona first and Madrid second, but the gap appears to close every year. Barcelona has benefitted from attracting expats in search of sun, beach and lifestyle who tend to produce more internationally minded startups. Madrid’s startups have predominantly been Spain or Latin America-focused, but have become increasingly international in nature. Although not part of this survey, we expect Valencia to join next year, as city authorities have been going all-out to attract entrepreneurs and investors. The overall Spanish ecosystem is generally less mature than those in the U.K., France, Sweden and Germany, but it has been improving at a fast clip. More recently, entrepreneurs in Spain have moved away from emulating success in pursuit of innovative technologies. Following the financial crisis, the Spanish government supported the creation of startups with the launch of FOND-ICO GLOBAL, a €1.5 billi...
Post a Comment
Read more

How to Stay Creative and Keep SEO in Mind

Information Technology Blog - - How to Stay Creative and Keep SEO in Mind - Information Technology Blog Search engine optimization (SEO) refers to customizing your website’s content to ensure that web browsers give your website a high SEO score. The sites with the highest SEO scores are featured on the search engine’s first page of search results for relevant searches.  71%  of the click-throughs happen with articles listed on the first page of results on the search engine. This means that if your website’s article is the second (or third, or fourth page), it’s less likely the search user will even see your article. You want your article to be ranking as close to the top of the first page of results as possible. In order to have a good SEO score your site’s content needs to feature keywords and relevant phrases. It must be optimized for easy navigation between pages. It also needs to be referenced via external links that drive traffic to your site. Incorporating all of t...
Post a Comment
Read more

Everything we know about HHS Protect, a secretive government project with Peter Thiel's Palantir that helps brief Trump's coronavirus task force

A secretive project at the US Department of Health and Human Services is working with technology companies to collect and analyze data related to the novel coronavirus .  Dubbed "HHS Protect," the effort tracks information from around the country about coronavirus case numbers, hospital capacity, and even supply chain issues.  HHS uses Palantir Technologies , a data firm cofounded by Peter Thiel, to distill that information for the White House coronavirus task force. Visit Business Insider's homepage for more stories . A secretive project at the US Department of Health and Human Services is working with technology companies to collect and analyze data related to the novel coronavirus.  Dubbed "HHS Protect," the effort includes roughly 2.5 billion pieces of data from healthcare providers, government officials, and labs around the country about coronavirus case numbers, hospital capacity, and even supply chain issues.  The goal is learn about the progress...
Post a Comment
Read more