One does not simply hate coupon. Many businesses consider offering a digital coupon to customers or even potential customers with eventually increase the sale (Christopher,B. 2014)..
Without doubt, coupon is an effective marketing way to attract new customers and returning customer in your company. From business perspective, coupon campaign can surely exert influence on your company’s profit margins (V, Kumar & Bharath.R. (2012).
So how do businesses promote their products with the help of digital coupon? Here are some of the digitally coupons that can be found online.
1. Free shipping
Free shipping is one of the most common offers. Most of customers are not willing to pay extra money for the shipping; business will consider this consumer behavior to offer this type of coupon.
The Body Shop usually offers free shipping coupon to customer. Body shop use the minimum purchase amount strategy which is an idea to business to ensure customer to make an minimum order (Rafael, B.A., Mingming,L, Mahmut,P,2013)
On the other hand, some of the business would want to increase a sales amount for a particular line of products, and they would offer a discount for the product as well as free shipping just in order to boost the sales. For example Gap, they offered 35%off discount with free shipping for old navy product line, to attract more customers.
2. Free gift with a purchase
Most of us cannot resist they thing that is free and company think this vulnerability as an opportunity to increase the sales. Company offers a free when customer purchased, it will make customers to feeling being treated, eventually increase the loyally.
Here is an offer from Liberty, they offer a luxury body wash as a gift when spent over 90 pound. Usually, the value of gift items would not greater than the value of total amount of purchase.
Digital coupon is now working best in increasing the sales amount and attracting more potential customer when accessed to internet. People are all love being treated by receiving an offer, so that customer will return to the business and become more loyalty.
Reference:
Christopher,B. (2014). Tips to Maximize E-commerce and digital coupon campaigns. Available:http://www.doubledome.com/blog/tips-to-maximize-e-commerce-and-digital-coupon-campaigns/. Last accessed 30/4/2015.
V, Kumar & Bharath.R. (2012).The Perils of Social Coupon Campaigns.Available:http://sloanreview.mit.edu/article/the-perils-of-social-coupon-campaigns/. Last accessed 30/4/2015.
Rafael, B.A., Mingming,L, Mahmut,P. (2013). Online RetailersíPromotional Pricing, Free-Shipping Threshold, and Inventory Decisions: A Simulation-Based Analysis1. Available:http://cptra.ln.edu.hk/~mmleng/mmleng_files/EJOR/PFS-Accepted-2013-04-08.pdf. Last accessed 2013.
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