Offering discounts or coupons is one of the most effective strategies to recover from abandoned carts. It is true that consumers add items to their shopping baskets with the aim of purchasing them, only to abandon them owing to a variety of concerns.
As a result, giving discounts for abandoned carts may entice people to make a purchase. On the other hand, the consumer is pleased to receive a tailored offer for his preferred goods.
However, such discounts and promotions have their time and place. Even spectacular success can sometimes have disastrous consequences.
But we’ll go over that in greater depth later. Essentially, this post offers you the best strategies for abandoned cart coupons.
What are Abandoned Cart Emails?
When a consumer adds a product to an e-commerce site’s online shopping cart but does not proceed to checkout and finish the transaction. Users may depart because they are not yet ready to purchase. Instead, they use their basket as a “wish list” while they look around and compare costs. Setting up automated, tailored email alerts to remind consumers that they have things in their basket is frequently all that is required to get them to finish checking out.
Almost 70% of online customers leave their shopping carts before checking out. People abandon their shopping carts for a variety of reasons. But here’s the good news: using abandoned cart emails, you can entice them to continue their purchase.
If you’ve ever abandoned an online purchase, you’ve probably gotten abandoned cart emails, which frequently arrive in phases. The first is often a polite nudge to finish your transaction. The second may add a deadline and the third generally offers a coupon or discount to entice you to return.
Understanding Coupons
Coupons are used by businesses because they are plainly effective.
A lot of extensive economic research has been done on relative prices and the impact of coupons on demand.
Coupons assist individuals in overcoming the most significant obstacle to acquiring a long-term customer in the initial purchase.
It is tough to persuade someone to make a first time purchase. However, after you’ve done it once, persuading them to do it again should be a lot easier.
When you think about coupons as a technique to precisely target first-time purchasers, an abandoned cart coupon makes a lot of sense in terms that this is your last shot to convert a window shopper to a customer, and that in turn offers you the opportunity to convert them to regular customers.
Now that we have an understanding of abandoned cart emails and customers, let us take a look at the top strategies to increase conversion and sales with the help of abandoned cart coupons
Strategies for Abandoned Cart Coupons
Emails from abandoned carts are an excellent location to give a discount. An abandoned cart discount is less likely to attract price-conscious buyers since it is placed behind an email.
And, by including a coupon in the second or third email in your abandoned cart automation, you may convert genuine buyers into regular customers without reducing your profit margins too much. Below is a list of strategies:
First Purchase Discount
Assume a site visitor is unfamiliar with your e-commerce store. They may have only recently heard of your business and are unsure whether or not to make a purchase.
A first-purchase discount might encourage customers to take the risk and place their first order. This is especially crucial for wholesale customers, as they may be making a substantial purchase.
If you have a visitor who has never purchased from your company before, this type of promotion might be what converts them into a regular client. After their initial purchase, you may add them to your email list and give them more attractive bargains in the future.
Offer Discounts Based on Social Sharing
Lower pricing or time-sensitive incentives may be enough to attract new clients. This is true for customers who were previously uninformed of a store or brand, as well as customers who have not purchased from a store or brand because the costs are deemed to be too expensive.
This may benefit your business not just by bringing in new consumers, but also serves as its own kind of marketing. Because you only provide discounts to consumers who share your store profile with their connections, you save money on marketing while attracting genuine and loyal customers.
Loyalty/Reward Points
If a shop has already sold products to a consumer, offering discounts or promotions may entice them to return.
However, a client may buy something once and never look back. To avoid this, establish a loyalty program or something similar. For example, if a consumer purchases a product or is a frequent shopper, offer them reward points that they may accumulate and use in the store at a discounted rate. These can be sent via abandoned cart emails.
This method raises your sales while also keeping your customers satisfied. Furthermore, the buyer will return to your business because the reward points are only valid there.
Exclusive Coupons and Memberships
Personalized and unique discount coupons, even one-time use codes, may create an aura of exclusivity, whether for VIP customers or utilized to retain clients. These discount codes will seem personalized for the consumer, providing them with a more pleasurable customer experience.
This strategy may be applied by giving multiple levels of membership in your shop to clients. The greater the tier, the more coupons or discounts they will receive.
This works as a supplement to the cash generated by selling your products.
Offer Coupons for Unsold Products without making it obvious
One of the most basic reasons for decreasing a product’s price is to make it more likely to be purchased. This urge exists for all products, but if a product goes unsold, discounting it may become the only option to generate enough demand to ship it. This can be caused by a variety of factors, ranging from a time-sensitive product, such as perishables, to a simple demand underestimation.
Make certain that the buyer does not receive the impression that they are being pushed outmoded or undesirable things in such a circumstance. Hype up these things in the same way you would any other product while delivering a significant discount in contrast to other products.
Free Shipping Coupons
Shipping and delivery are important aspects of eCommerce shopping since consumers buy online for convenience. Offering free delivery is an excellent strategy to recoup clients since it removes a direct expense that may have been holding them back. Customers have learned to anticipate free delivery as more companies provide it.
In a significant number of studies, free shipping coupons had the greatest open and click-through rates when compared to other techniques. Furthermore, you save money because you don’t need to give any further coupons because this appeals to the buyer as a discount and a price decrease.
Buy One – Get One Coupons
A buy one, get one (BOGO) deal indicates that when buyers buy one item, they receive a second item for free or at a reduced price.
Giving your consumers free things motivates them to make a purchase. You get extra points if you market it as a limited-time deal.
These types of coupons may be used to generate BOGO discounts with single products, groups of products, or whole product categories. All of these methods can help your eCommerce store decrease cart abandonment.
Additionally, this may help you get rid of unsold products by adding those to the BOGO offer as the “Get One” prospect.
Flash Sale Discounts
Flash sales are limited-time offers that are only available for a limited period. They are successful because they capture consumers’ attention and can create excitement about bargains.
Flash sales can generate a sense of urgency in order to convert abandoned carts into sales.
In a nutshell, this type of promotion generates a sense of urgency and may prompt customers to act swiftly. This is because people may be more likely to buy if they believe they are about to lose out on a fantastic deal.
The “Black Friday Sale” or “Independence Day Sale” is a well-known example of such a technique. This is a tried-and-true approach utilized by millions of merchants across the world to increase conversions and sales.
Percentage Based Coupons
Percentage-based discounts are a typical coupon approach. This is a terrific technique to give scalable discounts, as you may offer these reductions on both high and low-value orders. Percentages shield you against large discounts on low-value carts.
Percentage-based discounts offer high open and click-through rates, but a low revenue per recipient. While more consumers open and click on these offers in recovery emails, you recover less income per recovered sale than other discount tactics.
While it may come as a surprise, smaller percentage discounts resulted in the largest income per abandoned cart recovered. Lower percentage discounts nevertheless encourage customers to return while reducing your loss of income as a merchant.
Preset Amount Based Discount coupons
Another typical form of delivering discounts is a predetermined amount, in which you are offered a specified amount off your total order. The average order value is a crucial consideration here since it has a major influence on how much you can recover.
Dollar-based discounts yield the most income per recipient while having a lower click-through rate than percentage-based discounts and free shipping offers. In fact, these approaches generate five times the revenue of conventional discount methods. The larger the discount, the higher the open, click-through, and income per recipient.
You must pay close attention to the cash amount you give as well as the average order value of recovered carts in order to not lose out on too much revenue.
Conclusion
It’s simple to determine whether discounts are beneficial to your objectives by evaluating how your company interacts with customers.
They can be vital and useful in some situations, such as competing with competitor businesses during busy seasons when customers demand discounts. Other times, they might cause more harm than good, such as when attempting to instill exclusivity and a sense of luxury in a product or service.
In order to automate the entire process on your WooCommerce store, check out the ELEX WooCommerce Abandoned Cart Recovery with Dynamic Coupons plugin.
If you decide to provide discounts and coupons for your eCommerce business, the tactics outlined above may be useful. We hope you enjoyed this content and learned something valuable.
