On the monthly performance call with my team today, we discovered that less than 40% of the customers now use a coupon at checkout, this is down from May, when 86% of all orders used a coupon code
How did we cut the amount of coupon usage in half and saved thousands of dollars?
How did we cut the amount of coupon usage in half and saved thousands of dollars?
We stopped depending on a cash discount as the one and only offer
it’s too easy to just toss up a 15% off coupon to acquire customers, and too many of us have been trained to believe that is just the way it is
“it’s part of the acquisition and growth”
it’s too easy to just toss up a 15% off coupon to acquire customers, and too many of us have been trained to believe that is just the way it is
“it’s part of the acquisition and growth”
Obviously, you still need a lead magnet to get email and SMS sign ups, so we offered something different with similar perceived value but much much lower actual value
1. We started offering a small accessory as a freebie, that has a perceived value of $3-5, but it’s actual cost is a fraction of the sticker price
instead of giving away cash discount as a percentage discount, we now give the same perceived value offer while only spending 1/3
instead of giving away cash discount as a percentage discount, we now give the same perceived value offer while only spending 1/3
2. we offered email and SMS sign ups to enter into a giveaway that has a super high value (think free razors for a year), you only have to pick one winner a month, but we notice that the sign up is on par with a cash discount, and often times even higher
point is, don’t live and die by the cash discount. Too much will bring down the value of your brand and in the long term, your profit margins
