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?
[1]http://www.practicalecommerce.com/articles/3927-Online-Coupons-Pros-and-Cons
[2] http://www.emarketer.com/Article/US-Millennials-Emerging-Heavy-Coupon-Users/1013806 [3] http://www.statista.com/statistics/266466/net-revenue-of-the-starbucks-corporation-worldwide/ [4]http://venturebeat.com/2016/03/17/how-retailmenot-and-hotel-tonight-create-massive-user-loyalty-webinar-recap/
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