In 2016, 126.9 million US users are expected to redeem digital vouchers (up 5% from last year). Banana Republic, Dr. Jays, H&M and other successful e-retailers are now on the coupon needle – and it doesn’t look they’re getting off it any time soon. Digital coupons: what are they & how to use coupons to boost sales? Read on to find out!
Introduction to e-commerce coupons
Digital coupons (promotions, special offers, discounts and other tricks businessmen pull to keep cash flowing) are meant to trigger e-commerce sales – and improve customer loyalty, of course.
Acquiring new customers costs your company 5-25 times more than keeping the existing ones. There's also a direct correlation between profits and customer retention. According to Fred Relchheld (Bain & Company), a 5% increase in customer retention will boost your revenues by at least 25%.
Many e-commerce stores prefer digital coupons to other revenue growth tactics like Instagram promo, direct sales on Facebook and abandoned cart emails. Here’s why:
Top 5 Ecommerce Success Stories: Digital Coupons Dominate
In 2015, over 320 billion (!) coupons were issued in the USA alone. However, customers redeemed only 2.5 billion of digital vouchers. What makes a digital coupon strategy work?