Couponing over discounts a thoughtful strategy for e-comm?

Digitization is changing the way we communicate. With the rise of digital footprints, the scope for eCommerce is increasing every day. The ease, variety, affordability and convenience in online shopping are surpassing the benefits of that from retail stores. Two of the most important element that is impacting eCommerce business are coupons and discounts, be it a sale during the year or during festivals. Though the purpose of coupons is ultimately to provide discounts, but they are quite varied from each other. Therefore, it is important for retailers as well as consumers to have an insight of them.

Coupons are documents/certificates offered to the consumers that can be exchanged for a price exemption when redeemed with retailers and manufacturers. Coupons are the most captivating source of attracting customers. Coupons can result in increased consumer traffic and has the power to generate higher revenues.

The success of an ecommerce site also depends on the couponing site to some extent. As per the recent industry report –currently, 13.5% of the total ecommerce shopping in Indian happens via coupon sites and other affiliates. Reason being, users are looking for bargains and couponing sites are a great way for ecommerce sites to drive conversions and for shoppers to save money.

“Initiating the concept of couponing over discounts in business is one of the rudimentary steps of small online stores which can help in building customer traction and retaining customers. Double your customers trust by giving coupons and they help the business grow"- Uday, CEO at HappyCheckout.in

Another report says that that Indian consumers redeemed coupons worth 100 million and more in the year 2013 and is expected to grow to 500% in the coming fiscal year.

Discussed below are some points that highlight the added value of coupons for small online stores-

1. Coupons help in labeling of brands: Coupons help in creating brand. As they not only serve the purpose of providing discount; they advertise a product or service. Coupons provide edge to retailers. While discounts may be provided on sites, but the fact that consumers could get an added advantage over the already discounted price, always sparks the curiosity among consumers. Customers are always thrilled with an idea of availing coupons; this generates more traffic for retailers over simple discounts.

2. Positive impact upon sales: Consumers perceive coupons as deal of price reduction, which are exclusive compared to simple deals. Coupon drives more business for retailers by enticing consumers.

3. Coupons yield customer loyalty:While simple discounts are same for every consumer, coupon rewards varies according to categories and subcategories.This rewarding ultimately builds a stronger customer loyalty.Simple emails with a discount, credit or cash back can make the allegiance of customers stronger.For example if you log in via coupon site such as happycheckout.in, consumers are availed with happy coupons, which gives consumers added advantage over the already existing deal package.

4. Captivating first time buyers: While the scope of discount is limited coupons have a wide reach. Most of the customers most likely share their coupon experiences with family and foes. People just loves offers and the experiences shared about coupon services might result in the acquisition of new customers. Other than coupon vouchers that are sent to customers, often gets shared among their circle, which sometimes bring in new customers.

5. An added advantage of validity period: While the scope of discount offers limited, as it depends on brands wish when and when not to avail the offers. But coupons are more comprehensive, as it has a fixed period of validity. Therefore customers are always aware of the validity period, and could choose to redeem during the given period. The customer finds it easy to easy to accept things that they are aware of, in this regard coupons acts as an added benefit for retailers.

6. More visible: Coupons are interactive and visually delighting, which brings in more consumer traffic. Therefore, coupons are more advertised than simple discounts. Coupon acts as a more powerful and engaging tool compared to the discounts. Tracking, availability of coupon codes and email campaigns has further broadened the scope. Different coupon sites such as in, Grabon, CouponRani etc. offer great cash back and discount offers for customers.

7. Psychological advantage: The fact that ‘one is getting a better compared to others’, has a big psychological effect, a coupon does that. Coupon deals give a sense of accomplishment to individual consumers, whereas simple deals are limited as the offer is same for everybody.

8. Social reach: While discounts are limited to on-site deals, coupon deal breaks this limitation. Exclusive special offers and deals invoke more interest among customers. Partnering to authenticated coupon sites such as happycheckout.in, grabonetc, act as an added advantage for retailers. Retargeting offers via various social sites acts as a reminder. Therefore, coupons have a wider social reach. Social media coupon campaigns enable retailers to leverage visitors into consumers.

Coupons should be part of business strategy online. With a clear goal and correct strategy coupons can help retailers boost their sales and increase their reach. Added is the viral power of the internet and social networking sites. A coupon is more likely to get shared and liked in a friend circle. Coupons certainly are added advantage to business prospects.

Article authored by- Uday Nandan, CEO at www.HappyCheckout.in