Creating Customized Coupon Codes and Customer Incentives
There are several ways to utilize customer data to increase your sales. An often overlooked method is generating customized coupon codes and customer incentives.
Your Point-of-Sale system, assuming you’re not using an old-time cash register, should have access to some pretty detailed information about your customers and their shopping habits. If you use QLess software to schedule appointments, you’ll have even more robust customer data available to you. All of this makes it possible to paint an incredibly detailed picture of your customers, including what purchases they’ve made, when they’ve made them, the time of day they’re most likely to be shopping and more.
But how do you leverage this information? There are a lot of options, but one of the most effective approaches is to create customized coupon codes and other personalized incentives.
Personalized customer incentives can be beneficial toward your business, from driving repeat revenue to building brand loyalty and word-of-mouth support. They can help your customers feel connected to you — by offering someone a one-of-a-kind coupon code for an item they’ve viewed multiple times on your site, they’ll feel like you understand what they need.
One example of a customized coupon code is the abandoned cart offer. Abandoned carts are all too common — the average ecommerce site experiences an abandoned cart rate of around 70 percent — but that doesn’t mean you should just learn to live with them. Instead, try sending customer incentives to help coax the customer into making a purchase. Sending out an email with a discount on an item they’ve abandoned is a simple and effective way to encourage the completion of the purchase. However, savvy repeat customers may figure out the process and abandon all purchases to wait for a discount code.
To prevent such a scenario, some businesses offer bundled purchase offers — something like “we see you’ve already added Item X to your cart. Add in this additional item and take 20% off your entire order!” Obviously, the offer here is up to you. Whether it’s a percentage discount, a straight monetary discount, a free-shipping offer, or something more creative, we recommend you test a variety of offers to see which ones get the best response. By encouraging the customer to “spend more to save more” on abandoned carts, you give them a reason to come back to their abandoned cart without necessarily conditioning them to always wait for an offer before completing a purchase.
How do you decide what kind of coupon code to offer? Well, there’s no better method than experimentation to figure out what works. Unlike using a cash register, utilizing customer data can give you insight into their shopping habits and behaviors. Depending on how sophisticated your testing and tracking methods are, you may even be able to segment customers into groups based on what customer incentives they best respond to. For instance, you may have a segment that values free shipping over the other options. But testing takes time. In the meantime, try following the “Rule of 100“. If an item costs under $100, use a percentage discount. Otherwise, use a fixed amount. This should have the psychological effect of maximizing the perceived value of the offer.
If you have the tools to start analyzing customer data, you should consider creating custom coupon codes to discern which offers work best and persuade abandoned cart shoppers to complete their purchase.