How to manage Discount Vouchers in your eCommerce

23/08/2018

Angela de la Vieja

Discount vouchers (also known as promo vouchers, promo codes, etc.) are one of the most common customer loyalty options implemented in an eCommerce. They can range from an initial discount for subscribing to a service, registering as a user or a reward for specific purchase values.

It is important not to confuse discount vouchers with gift vouchers. The latter seek the opportunity to offer the consumer a purchase for a value, without actually knowing in advance which product will be purchased. However, discount vouchers are bonuses that an eCommerce can use to reward its customers for reaching milestones within their relationship with the online store.

What should we keep in mind when starting a loyalty strategy in our eCommerce that includes discount vouchers? At the very least, these following four points should be considered:

1. Automation. When it comes to offering bonuses of this type it is vital that the eCommerce has an elevated degree of automation. The strategy must include a clear and complete outline of how the gift vouchers will be awarded and sent to the customer. The same marketing automation plan can help the sales team to create the layout in which discount vouchers will be awarded. This way it will be much easier to control the customers who are offered vouchers and how to interact with them.

2. Validity and expiration. There is nothing worse for the customer than using a discount voucher that doesn’t work. It is important that at the time the discount vouchers are issued they are correctly activated and included in the corresponding database which permits their use, and also that their duration is correctly defined. This must be clearly communicated to the customer at the time the voucher is delivered. How to decide the expiration? It will need some common sense to balance the duration to the milestone which has been reached by the customer. For example, if the discount voucher was granted at the initial registration then the objective is to encourage the first purchase; an expiration date that is too long could delay the potential client's decision and end up dwindling into oblivion.

3. Progressive amounts. Unlike discounts, discount vouchers seek to give an initial amount for the customer to spend. The invitation to do so is the key: without any conditions, without promoting the idea that they need to spend more in order to take advantage of the discount. However, like the usage dates, it is important to assess what amount will be granted in each case depending on the situation in which the potential customer finds themselves. In this sense, it is essential to keep in mind the pricing strategy of your eCommerce and to know what margin of manoeuvre the store has for boosting sales without falling into bankruptcy. Here we must consider both the number of customers who receive the offer and the actual percentage of them who use it, along with the operating costs that will be incurred by its use: from shipping costs to maintenance and operational costs of the online platform itself.

4. Up selling. Within the automation you should consider the possibilities of up-selling that can be achieved when offering discount vouchers. Although the voucher may not require a minimum expense to be used, it is interesting to contemplate the option of offering this only when the customer can complement his purchase with other products. There is no better incentive for a new visit than that which proposes the purchase of something specific based on the customers purchase history.

In whichever case, no rules are written. The A/B tests are a total success for defining the best strategy for each eCommerce. If it is already an already consolidated online-store with recurring clientele, the tests can be done without any problem and obtain all the necessary data needed to perfect it.

On the other hand, the invaluable help of your competition returns, once again, and is key to the elaboration of a discount-voucher based loyalty plan. Monitoring your competition and seeing how they implement this alternative to straight discounts, within their sales strategy, is a huge plus for getting oriented on what works, what does not and how things can be improved.

11/11/2022

Consumer behavior: How can behavior tracking be effective for setting the right pricing strategies?

Behavior tracking is becoming massively popular today. As a result, pricing strategies born from studying consumer behavior are a merchant's dream come true. If done right, it can conquer every market for the business quickly. With abundant data available, the strategic makeover of the pricing models is becoming easy for companies.

What is behavioral tracking, and how is the data beneficial in pricing?

For a quick understanding, behavioral tracking refers to gaining in-depth knowledge and insights into consumers through their web data. Their browsing habits, spontaneous decisions, shopping interests, and preferences come under behavioral tracking.

How can enterprises use customer behavior data?

Companies can use customer behavior data as a tool to strengthen their hold on the market. A customer’s preferences, values, and tendencies allow businesses to work in sync with them through the collected data. Apart from this, customer behavior can also aid in:

Tailoring customer needs for customer retention

Personalization is becoming the heart of a company’s growth. No matter in which area an enterprise is functioning, tailoring the services, products, and solutions is becoming increasingly crucial. Uniqueness and personalization attract the crowd like no other.

Increasing the overall value

One of the best ways customer behavior data affects a business is by upgrading the value of customers for the business. The customer’s characteristics allow the company to target the people that match the business prospects well.

Optimizing every type of content

Everything that is up for digital display requires content. You must have seen companies unveiling their products or services through advertisements and making the initial public appearance. Two essential sales strategies – upselling and cross-selling comes through content optimization.

Pricing Strategy

Last but certainly not least is the influence of customer behavior data on the pricing strategy. The pricing strategy essentially constitutes content derived from data analysis. Companies need to have a dynamic approach to the pricing system to attract the right customers.

17/02/2015

Saint Valentine’s Day, always a good opportunity

V-Day is looming, a long-awaited date for all and also a good occasion for the eCommerce. According the study conducted by Prosper Insights and Analytics, it is forecasted the average consumer expense that day will be the highest in last years. Furthermore, 25% of them will buy online, which means an increase of 4% regarding 2014 (The US department of Commerce). This is, therefore, a key date where market competitiveness increase and which could be assumed as a big opportunity for our business or, a big fail if we do not adopt the correct strategies.

How to turn this event into an opportunity? To achieve this goal, we need to adapt our prices to this hostile environment, i.e. we need to develop an appropriate Dynamic Pricing strategy that allows us to adapt our prices to the variations produced in supply and demand and to position us ahead of our competitors. In V-Day, the frequency in changes will be higher, carrying it out each hour or even each minute. It is estimated that 65% of leader retailers have the ability to respond quickly at these variations, such Amazon. For this reason, it acquires great importance the correct use of a software specialised in price motorisation of competitors. Do not miss the time and adapt your business to new adversities.

28/12/2022

Which are the best footwear marketplaces to sell on?

Footwear marketplaces are booming. The last decade has seen the launch of new specialized marketplaces with millions of different users. Among them are Spartoo, Sarenza and Farfetch, portals with international reach. Their main value is that they unite hundreds of footwear brands, as well as offering clothes and accessories. Although each has its own characteristics, they are all vertical marketplaces, i.e., they focus on a specific area, and their sales categories are interrelated. For sellers, these portals provide an opportunity to expand sales channels and drive the globalization of their e-commerce business. We explain how to sell on these footwear marketplaces so that you can assess whether they align with your plans for the future and then start defining a possible pricing strategy.