One of the most effective ways to attract and retain customers is through the strategic use of different types of coupons in your eCommerce store. It doesn’t matter if you are running a WooCommerce store or any other eCommerce store, understanding the different types of coupons and how to use them effectively can help you target the right audience with the right kind of discount coupon.
In this article, we’ll explain all the types of coupons that can be implemented in WooCommerce as well as in many eCommerce stores. From discount codes to free shipping offers, this article has everything you need to devise a discount strategy.
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Common Types of Coupons in eCommerce
Some of the most popular types of coupons used in eCommerce are listed below.
a) Percentage Discount Coupons
Percentage discount coupons are one of the easiest types of coupons for customers to understand and apply discounts for their products. Store owners deduct a fixed percentage from the product or the cart value.
For example, store owners can decide the discount percentage they’re gonna offer; generate a coupon code like “SAVE20”; and define the conditions for the coupon like minimum cart value or specific product categories. The main advantage of percentage discount coupons is their versatility and these types of coupons can be automated in platforms like WooCommerce.
b) Fixed Discount Coupons
In these types of coupons, customers know exactly how much they’re saving, which simplifies decision-making. Unlike a percentage discount, fixed discount coupons offer a specific price reduction on the total cart value or to specific products.
For example, store owners can set a fixed $10 or a $20 discount amount and provide it as a coupon with an understandable coupon code. In eCommerce stores like WooCommerce, you can easily create WooCommerce coupons to offer different types of discounts.
c) Wholesale Discount Coupons
These types of coupons offer discounts when customers purchase large quantities of products. This wholesale discount incentivizes bulk purchases and is most commonly used on B2B eCommerce or for stores looking to clear inventory.
To create wholesale or bulk discounts in your WooCommerce or any other eCommerce store, all you need to do is specify the quantity levels or order value e.g., 10% Off when buying 50+ units or any other specific quantities. Then, create coupon codes like “BULKBUY10” and market them to your customers.
d) Free Shipping Coupons
These types of coupons are a promotion where customers do not pay shipping charges on their orders and the store bears the cost instead. Free shipping coupons are one of the most effective types of coupons as customers often see shipping charges as a barrier to completing the purchase. Free shipping coupon also has a universal appeal across all demographics.
These types of coupons can be given for all orders or to specific products or product categories with coupon code names “FREESHIP” or “SHIPFREE.” and promoted via banners, pop-ups, and coupon marketing emails.
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A gift card coupon in e-commerce provides a preloaded value that customers can use for future purchases. Gift coupons can be discount coupons, free product coupons, gifts with purchases, or any other digital coupons. This digital coupon marketing technique can help boost customer engagement and drive sales in your ecommerce store.
Customers see a gift card or a free product coupon as an increase in their perceived value. When these gift card coupons are tied to restrictions or select products, store owners can easily increase average order value.
f) URL Coupons
How about types of coupons that don’t require costumes to manually enter the coupon codes? URL coupons do exactly that. These types of coupons in ecommerce present customers with a clickable web link that applies a discount to their carts directly.
eCommerce or WooCommerce coupon in URL are targeted toward email subscribers, social media users, ad campaign audiences, or event-specific customers. By embedding URL coupon links in the respective posts, store owners can improve convenience and improve conversion rates.
g) One-Click Coupons
Similar to URL coupons, one-click coupons can be applied instantly with just one click. These types of coupons are primarily used within the eCommerce store or integrated with marketing tools.
When a customer clicks the one-click coupon provided in the store interface or within an email, the discount is applied immediately without a link. In short, one-click coupons are aimed at simplifying the user experience.
h) Loyalty Points Coupons
These types of coupons are provided for customers who have earned loyalty points. These loyalty points can be used for coupon redemption as discounts. Loyalty coupons encourage customers to accumulate points by purchasing frequently from your ecommerce store.
To set up these types of coupons, eCommerce store owners need to create a loyalty program and allow customers to generate loyalty coupons through it. For example, WooCommerce store owners can easily set up a loyalty program using the plugin called WPLoyalty. Loyalty points coupons encourage repeat purchases and give eCommerce store owners sustainable growth.
i) After Purchase Coupons
As the name suggests, an after-purchase coupon is a discount coupon offered to customers immediately after they complete a purchase from your eCommerce store. These types of coupons are aimed to encourage repeat purchases.
The psychology behind offering auto purchase coupons is that it gives customers immediate gratification. These types of coupons are versatile as they can be used on all types of customers.
j) Automatic Coupons
Auto-apply or automatic coupons are applied without any customer interaction or manual input when customers meet predefined conditions such as minimum spend or purchase.
Customers don’t need to click any button or enter a code. These types of coupons are used in promotional emails, ads, or product pages to actively engage customers.
k) Mystery Coupon
In these types of coupons, the discount values remain hidden until the customer does a specific action such as clicking on a link, spinning a wheel, or any other games. The discount vouchers provided range from smaller rewards to larger discounts.
Mystery coupons increase engagement and customer interaction in your eCommerce store. To display these types of coupons in your WooCommerce or any other eCommerce stores, you need to use tools like gamified pop-ups, spin the wheel, or any other email links. This element of surprise keeps customers engaged and is a cost-effective way of promotion.
l) Influencer Coupons
If you are looking for ways to expand your audience reach, influencer coupons are the way to go. In these types of coupons, promotional codes with discount offers are shared with influencers who share it with their followers for a wider reach.
Ecommerce store owners need to identify the influencers who align with your brand and target audience. Then, integrate tracking tools like Google Analytics or any other plugins to monitor sales performance. In this way, you can identify where you lag and optimize it accordingly.
m) Cashback Coupons
Cashback coupons/ Rebate coupons are savings coupons where customers receive a percentage or fixed cash back on their purchases. These cashback offers can be either a store credit or a direct refund. The target audience for these types of coupons is price-sensitive customers or any buyers looking for savings on future purchases.
These types of coupons can be used during peak shopping seasons such as eCommerce Black Friday or any other season. Cashback coupons can increase customer retention and encourage repeat purchases to drive sales.
n) First Order Discount Coupons
When you want to incentivize new customers to complete their purchases and garner customer loyalty, a first order discount is the way for you. In these types of coupons, new customers are given a discount upon their first purchase or registration on an eCommerce store.
These types of coupons can be offered when a user signs up for an account or subscribes to your newsletter.
o) QR Coupons
These types of coupons are QR codes that can be scanned with QR Code Scanner tool on mobile devices, tablets, and desktops. These QR codes contain the link to the discount offers for products or product categories. QR coupon can be provided to customers at events, in print or digital advertisements, etc. These types of coupons can be activated for limited-time sales or during seasonal offers.
p) Support Coupons
These types of coupons are not a promotional strategy but rather compensation for customers who have encountered issues or challenges with their purchases, such as returns, complaints, exchanges, or service delays.
Support coupons are offered after resolving customer complaints, and handling returns or delivery issues to maintain satisfaction and encourage future purchases.
q) Affiliate Coupons
These types of coupons drive more traffic to your store, increase sales through affiliate marketing partnerships, and improve customer loyalty. Affiliate coupons create a win-win situation, as affiliates earn a commission, and your store gains more visibility and conversions.
Affiliate marketing and coupons are offered through affiliate partners in exchange for promoting your store on their platforms. Affiliate coupons can be shared via blogs, social media, email newsletters, or influencer campaigns.
r) Member-Only Coupons
These types of coupons are provided to registered customers or members of specific loyalty or coupon programs. Member-only coupons are not available to the general public and are offered as rewards for signing up, making a purchase, etc.
Membership coupons are offered at key moments, such as after a customer’s first purchase or during their birthdays. These types of coupons help increase customer retention and drive repeat sales.
s) Holiday Coupons
Holiday coupons are discount coupons provided during holiday seasons or events such as Christmas, Black Friday, New Year, etc. Once created, eCommerce store owners can schedule a coupon and make it available to customers on particular occasions.
The target audience for holiday coupons includes both existing and new customers who are looking for seasonal deals and want to make the most of these seasonal discounts. Timing is critical when you offer holiday coupons and should be offered at least 1-2 weeks before holidays to allow customers to plan and shop.
t) Abandoned Cart Coupons
These types of coupons are useful when you want to recover abandoned carts in your eCommerce store. Abandoned cart recovery involves providing discounts to customers who have left items in their carts without purchasing them.
Abandoned carts coupons are sent to the customer through emails or SMS within a few hours to a day after the cart is abandoned. These offers can be automated using tools like Retainful or any other coupon management plugins.
u) Retargeting Coupons
Retargeting coupons recover lost sales by bringing back potential customers who showed interest but didn’t complete their purchase. Here, customers will be reminded of their previously viewed items and offered discounts to make them return and buy the product.
These types of coupons are offered through personalized display ads or emails, targeting users across platforms such as Google, Facebook, or Instagram. E-commerce store owners should be wary of forcing ads on their customers and not being repetitive.
v) Customer Milestone Coupons
These types of coupons are provided for customers when they reach a specific milestone in your eCommerce store. For example, when a customer completes a certain number of orders or has crossed a certain spending threshold.
Customer milestone coupons are targeted at customers who have been purchasing from your store for a long time. By providing these types of coupons to them, it motivates them to purchase more from your store. Customer milestone coupons are provided via emails or through the customer’s account dashboard when they reach a specific threshold.
w) End of Financial Year Coupons
These types of coupons are discounts offered by eCommerce stores to sell off excess products from their inventory. The target customers for these types of coupons are customers who purchase in bulk, bargain shoppers, or anyone looking for deals on products that are being cleared out.
Usually, inventory clearance is done during the end of financial year or in any scenario where you need to clear excess stock. You can also group products and provide bundle discount to clear your inventory.
x) Text Message Coupons
As the name suggests, Text message coupons are sent to customers via SMS. These coupons contain anything like percentage discounts, free shipping, or any other exclusive deals. These types of coupons work when customers opt in to receive SMS updates from your website.
The main advantage of text message coupons is that they help drive immediate action from customers. Another benefit is that store owners can provide personalized offers directly to customer’s phones.
y) Subscription Coupons
Subscription coupons are offered to customers who sign up for a subscription on an eCommerce website. Coupons can be provided for the first subscription order or for customers who commit to recurring purchases.
These types of coupons can be offered during sign-ups or on a dedicated landing page for subscriptions on your eCommerce store.
z) Referral Coupons
When a customer refers their friends, family, or any other customers to your eCommerce store, he/she will receive a discount coupon called a referral coupon. Referral coupons help increase customer acquisition and are a form of organic promotion. These types of coupons are cost-effective and are more likely to result in conversions.
Strategies to Implement Different Types of Coupons in WooCommerce
Besides creating coupons, one must know how to market those discount coupons and make them known to your customers. Following are some of the best coupon practices for coupon offers that can be used to implement coupon programs using different types of coupons in your eCommerce store.
- Set Coupon Usage Limits for Coupons: Define the maximum discount per coupon or user to ensure fair coupon distribution. For coupon examples, you can set a “10% Off” coupon to one-time use per customer and encourage strategic coupon implementation.
- Create Time-Limited Coupons: Set coupon expiry dates to drive urgency and increase conversions. While creating a coupon, make sure the coupon code reflects the exact date up to which the discount offer is available to the customers.
- Offer Spend-Over Amount Coupons: All the types of coupons in eCommerce can be set in such a way that it encourages higher cart value purchases. If you are running an online store in WooCommerce, you can provide WooCommerce upsell as well as cross-sell.
- Leverage Prelaunch Coupons: Create a buzz with exclusive early bird discounts before product launches. For example, you can send emails to your customers such as ‘Prelaunch Special: 20% Off’, and incentivize your loyal customers.
- Reward Attendance with Coupons: You can use these events to spread your coupons to your customers. You can reward customers who attend events or product launches with exclusive discount coupons to boost cu
- Survey Submission Coupons: Coupons can be provided after feedback from your customers. Ecommerce store owners can use can use catchy lines such as ‘Complete our Survey & Get 10% Off’ to increase responses and improve customer engagement.
Besides following a coupon strategy, you need to have a proper coupon design to convey the coupon information to your customers.
Attract new customers to your store by offering percentage discounts to your products using the Discount Rules for WooCommerce – PRO
Conclusion
Understanding and implementing the right types of coupons for your eCommerce business. Strategically using discount codes, time-limited offers, and other targeted promotions can drive more traffic and increase conversions.
By choosing the most suitable coupon examples and coupon trends for your goals, store owners can create powerful coupon marketing strategies to boost sales and customer satisfaction.
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Different types of coupons perform different functions. For example, to retain customers using coupons, you can try providing percentage discount coupons, etc To conduct flash sales, mobile coupons are more effective. In this way, you can manage coupon programs effectively.
Keeping coupon codes simple and relevant to the target audience is the most basic thing to ensure. Then, provide valuable discounts or incentives to drive action along with effective coupon marketing techniques.
The coupons you provide should be compelling and clear to the customers. You can also use time-sensitive offers or targeted discounts to increase customer engagement. In addition to this, you need to analyze coupon performance and make it better suited to your campaigns.
The first thing to consider while optimizing coupon offers is to design attractive coupons and follow the trends in coupon usage. After this, monitor coupon campaign success to make changes whenever necessary.
Understanding coupon classification and the benefits of various coupon types is the most basic step to distributing coupons effectively. Then, analyze all the possible coupon distribution channels to distribute coupons effectively.
