How the Coupons Changed the Landscape of Online Shopping

August 7, 2023


Online shoppers want deals. This is why coupons are a must-have for any retailer.

In 2022, digital coupon usage significantly exceeded paper coupon use by millennial shoppers. Consumers also preferred shopping at online grocery stores that accept coupons.

Capturing customer behavior data allows brands to offer personalized discounts relevant to consumers' purchasing habits. This helps retailers build brand loyalty and increase sales conversions.

They Attract New Customers

New customers are the lifeblood of a business, and coupon marketing is one of the best ways to attract new shoppers. However, balancing this discount strategy with other revenue-generating methods is essential to ensure long-term sustainable success.

For example, offering a free shipping promo code on the first purchase will help reduce your company's abandoned cart rate. Similarly, a 10% discount will encourage consumers to buy more items and increase the average order value.

Coupons make it easier for consumers to try a new brand and become loyal customers. They also drive sales volume and speed up repeat purchasing behavior. 80% of people sign up for email newsletters specifically to receive coupons.

While there are some risks to using coupons in marketing, if used wisely, they can be one of the most effective tools for growing your market share, increasing sales volume, and building a solid customer base. When overused, however, coupons can diminish the perceived value of products and brands already selling at an acceptable market price.

Additionally, overusing discounts on slow-selling or poor-performing products will train consumers to wait for a better deal, which can lead to delayed and less profitable sales. To avoid this issue, companies must be strategic about using coupons and ensure they are being used to promote high-value products and services, not just mediocre ones.

They Attract Repeat Customers

The desire to save money is a driving force behind many online purchases. Couponing is crucial to e-commerce businesses, especially new or up-and-coming brands. eBay coupons can encourage customers to shop repeatedly when used in conjunction with loyalty programs. The trick is to strike the right balance between customer needs and bottom-line impact. More discounting can make your business lose money and may cause customers to expect your products to always be on sale.

Use attractive visuals to promote your coupons and discounts to engage your customers. They don't need to be fancy but should be eye-catching and enticing enough to draw your audience's attention.

Promo codes are a simple way to offer customers coupons when they check out on your website or app. It's easy for them to enter these strings of letters and numbers, and they experience the instant gratification of seeing their total decrease.

If you want to increase customer loyalty or create a sense of exclusivity, try offering exclusive or one-time-use coupons to your most loyal customers. This will give them a sense of achievement and makes them feel special. They will also be more likely to recommend your brand to others.

They Attract Referrals

A coupon is a powerful tool that can boost the performance of your referral marketing campaign. However, please avoid using it as a substitute for other customer acquisition forms. Rather than focusing solely on discounting products, try integrating the coupon with another form of customer incentive to create an irresistible offer.

For example, if you want to drive new referrals through your email marketing, include a referral coupon in the body of your message. This will help you track referrals, reward your advocates, and encourage subscribers to share the coupon with friends.

Similarly, you could use your referral program to eliminate slow-selling or discontinued items by offering a steep discount. This will motivate shoppers to buy them, and you'll free up space on your digital shelves.

Another effective way to use coupons is to promote them in your paid social and display ads. These will allow you to reach more shoppers and generate conversions but include a clear call-to-action in the ad copy.

Finally, you can use your referral program to encourage customers to refer you more than once. This is known as "advocate rewards," it's a great alternative to the traditional model of rewarding only the initial referral. Instead of giving a flat discount to the referrer, you can give them additional incentives like extra products or services if they return and recommend again.

They Increase Customer Loyalty

A customer loyalty program is one of the best ways to create customer loyalty. Loyal customers are the foundation of your business and will drive repeat sales, referrals, and brand advocacy. When you offer a loyalty program, you can use coupons to entice new shoppers and encourage repeat purchases.

However, you must be careful when using coupons and discounts to build loyalty. Consistently offering discounts can lead to customer devaluation and make it harder for you to sell products at the total price. You can avoid this by using time-limited and quantity-limited coupons to add urgency and attribution.

Additionally, you can use recurring purchase options like subscriptions and memberships to boost loyalty by creating a dependable shopping experience for your customers. This includes making it easy for them to edit orders, return items and reach out to support teams if they have any issues.

In addition, you can create urgency with exclusive members-only sales to encourage loyalty and generate higher conversions.


Carlos Diaz
I believe in making the impossible possible because there’s no fun in giving up. Travel, design, fashion and current trends in the field of industrial construction are topics that I enjoy writing about.

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