The season of joy and giving is almost upon us – and for Amazon Sellers, this should truly be a reason to rejoice.
But with the online (and offline) wars heating up with between Amazon, Walmart and Target (Who now offer free 2-day shipping, 5% off to card holders and other attractive perks) you have your work cut out for you this season.
October is the prime time to start building your holiday shopping strategy, leading up to Black Friday and the holiday rush that follows. We’re here to give you some tips that you won’t find on Amazon’s Sellers U to prepare and maximize this holiday season!
Why Promo Codes and Coupons?
Before we give you the tips, it’s important to understand what a HUGE role promo codes and coupons can play in your sales.
Let’s face it – we all LOVE a good bargain. So much so that 62% of consumers spend two hours each week searching for deals and special offers. According to VoucherCloud, 57% of shoppers insist they would have abandoned their purchase without a coupon, and users with coupons spend 24% more than regular shoppers. Discounts and deals are a HUGE driver for traffic and conversion. But, you have to be smart with your deals so that you end up making money, not losing.
1. Using Promo Codes the Right Way
Give an Excuse: When creating a promo code, always give an excuse! And what better excuse than holiday shopping? The reason for the excuse is that you don’t want to harm your brand or look like a “bargain basement.” That’s also the reason you don’t want to give too deep a discount. And don’t just target the obvious days like Black Friday and Cyber Monday – ramp up a few weeks before, getting people excited about deals they can get before the rush!
Limit and Test – Limit the codes to specific demographics, a limited number of codes, expiration date, etc. This will help you create urgency and scarcity while giving yourself enough data to see what works for you.
Steal from the Best – Take a look at promo code aggregators like coupons.com and retailmenot.com. See what other sellers with similar (or the same) products as you are doing with codes. This will ensure that your offer won’t pale compared to theirs.
2. Making Promo Codes Private
Private promo codes work because they’re targeted, they make your customers feel special and they help create a mailing list. Here’s how you can create promo codes and use them to your advantage:
Privatizing Codes – Turn your Amazon coupon code into a sign-up coupon using a site like Octopon.me that allows you to transform codes into shareable, trackable unique coupons that can be spread in many different channels, but the client gets the promo code only after signing up for it, keeping it private.
Spread only on Existing Mailing List – 91% of coupon redeemers suggest they will revisit retailers that offer coupons. Send private code coupons to buyers that have already used promo codes or discounts in your store to drive them back. If you know they’re price sensitive, give them a good reason to be a loyal customer.
Target the Right Customers – When creating a coupon for a specific item, send to customers that have either bought it before or shown interest in it on social networks or belong to a group that is interested in this type of product. That way you know they’re more prone to buy it and they know you’re taking an active interest in their interests.
3. Using Promo Codes to Create Mailing Lists
One of the best things about private promo codes is that you can give them out only after the client signs up for it, giving you another treasured member of your mailing list. It’s so important to build your mailing list and segment it right so that you can truly target the right customers with future promo codes and coupons.
Create a Form on your Website – Make sure you have a widget or form like MailChimp that captures leads as they come to your site.
Give them an Incentive for Leaving Details – 80% of buyers share that they signed up for email offers specifically to receive discounts. Again, by using coupon creators like Octopon or any 3rd party coupon creator gives them an impetus to give you their information because they already see the deal they’ll get in return, and you get their sign in info automatically!
Get Rid of Stock While Creating Mailing List – Another great way to build your mailing list is to create promo codes for products that you have an overstock of. Use the tactics above for time limit and targeting the right customers to move stock and still make money on it.
4. Choosing the Right Products
It’s important to choose not only the products you will discount but the products that are predicted to be a real hit this season or products that are seasonal. Using Algopix can help you make sure that you’re choosing the right products and price points so that you aren’t stuck with a bunch of overstock.
In summary, 57.4% of consumers claim they are more likely to buy a product from a retailer’s site when the retailer emails them a discount code. 60% of consumers love to receive digital coupons and 50% of consumers are more likely to visit a store if they have received a coupon. In just a click you can drive them to your store, increase their cart size, and have yourself a merry little Christmas!