7 Profitable Email Marketing Techniques with Coupons

As a Shopify merchant, not offering your customers discounts can result in missed opportunities for business growth. This article covers practical tips for raising the conversion rate, attracting new customers, and encouraging repeat purchases from existing ones with a win-win discount code strategy.

What Are Discount Codes and How Are They Used?

Discount codes are combinations of letters and numbers created to provide a discount to customers. Customers can enter these codes at the checkout stage. As a result, this feature helps reduce the subtotal by the discount amount. E-stores often incorporate discount codes on different pages as part of their marketing strategy to boost sales from both new and existing customers.

Discounts from these codes can be tracked by sales campaign, allowing you to identify the most successful ones and replicate their success. Your discounts can apply to a single item or an entire order and can be offered to your entire customer base or targeted groups, such as new subscribers or loyal customers.

Types of Shopify Discount Codes

There are various types of discount codes you can use in your Shopify store to attract both new and returning customers. Here are some common types:

Percentage-based discounts can range from small amounts like 5-10% to substantial cuts like 50% or more. You can apply percentage discounts to multiple products or collections. The discount amount you choose should align with your marketing strategy.

Free Gift: Offering a small gift with a purchase can significantly attract buyers. It is especially effective if you have a surplus. You can set a minimum purchase amount, item quantity, or type of item that qualifies for the gift.

Free Shipping High shipping costs can deter customers, particularly compared to a relatively inexpensive order. A free shipping discount code can address this issue and boost your conversions. These codes are often paired with a minimum purchase value to increase your average order value (AOV) while maintaining profit margins.

Benefits of Using Discount Codes in Your Shopify Store

Discount codes offer a win-win situation for both you as a Shopify store owner and your customers. The discounts incentivize purchases, helping customers save money while increasing sales. Additionally, they augment customer happiness: a study by Claremont Graduate University Center for Neuroeconomics Studies showed higher oxytocin levels (a hormone associated with joy) in people who received discount codes. Happy customers are more likely to remember your brand, return for future purchases, and spread the word.

Discount codes or digital coupons drive traffic to your site, introduce new product lines, move excess inventory, raise existing customer engagement and loyalty, and generate new revenue. Approximately 55% of consumers view discounts positively, with 60% trying new products and nearly 50% changing their purchase plans because of discounts. 

Need more convincing? Offering discounts may reduce profit per sale in the short term but can increase your ROI overall. With a versatile app like Mega Discount Coupons, you can build more trust by showing customers real-time transparent information on applied discounts directly in the cart. The tool lets you strategically locate coupons anywhere on your product pages with fully responsive designs. A flexible feature for creatively matching coupons to your brand aesthetic and every occasion can engage them further and entice customers to visit your store more frequently, resulting in even higher business benefits.

Creating Loyalty

Repeat customers spend about 70% more than new customers. They believe in your products and know they can expect a great experience and value. Thus, they are more likely to repeat purchases and recommend your store to others.

Discount codes are crucial for gaining repeat business. Running campaigns targeted at new customers is a smart business move. You can also earn repeat sales through reward programs, improving the customer experience, offering added conveniences like gift-wrapping, and engaging your audience on social media with helpful information.

Increasing Sales

Discounts drive more sales from existing and new customers, increasing your profits. Discounts make people happy, saving them money and making it easier for new customers to choose you over your competitors. Once satisfied with discounted items, they are more likely to explore and purchase other products at standard prices.

Discount Code Ideas to Boost Your Sales

Here are some proven uses for discount codes you can start with:

1. Abandoned Cart Discounts: Reach out to the nearly 80% of shoppers who abandon their carts by sending a discount code via email or push notification.
2. Preorder Discounts: Manage demand by offering discounts on preordered items, ensuring you sell more overall.
3. Seasonal or Holiday Discounts: Drive more traffic and conversions during holidays by offering discounts on seasonal gifts.
4. Recurring Discounts: Hold regular sales to move excess inventory and boost your sales consistently.
5. Social Media Engagement Rewards: Offer discount codes in exchange for actions that boost your social media presence, such as sharing your page or commenting on posts.
6. Referral Offers: Encourage referrals by offering discount codes to the referrer and the new customer.
7. First Purchase Discounts: Alleviate first-time buyer hesitancy by offering a discount on their initial purchase.

Recap

Now that you’ve seen how effective discount codes can be for achieving business goals and their various uses, why not try them? By notifying customers of enticing discounts directly on pages of your site using Mega Discount Coupons, you’ll give them even more reasons to return to your store and make a purchase.