Vouchers have been used for a long time to increase sales. Some companies use vouchers codes as their exclusive digital strategy. One of the reasons why vouchers codes have been popular is that they are easy to share and promote. Many sites promote the codes at a reasonable fee and sometimes at no cost. It is easy to track the performance of the codes and limit their usage to a specific value.
You can use voucher codes to promote a new product or event. However, you must use the codes in the right way to achieve the desired increase in sales and profits.
Here are some of the best uses of voucher codes to boost sales.
1. Target early bird purchases
One of the best to use voucher codes is promote early bird purchases. Some customers prefer to products early especially tickets to events. Others will wait until the last minute unless if there is a discount for an early purchase. Restrict the validity of the voucher to a specific date to encourage customers to buy early. You can also give a higher discount for early purchases and a lower discount for later purchases.
Another way to promote early bird purchases is to limit the number of uses for each voucher. For instance, you can say that the vouchers are only valid for the first 50 or 100 purchases. Customers will rush to be among the first buyers and take advantage of the discount.
2. Restrict vouchers to a certain value
Sometimes giving voucher codes for all purchases may yield the expected results in boosting profits. One creative way to use the voucher is set a lower limit for the amount that customers must pay to redeem the voucher. For instance, you can indicate that certain codes are valid for purchases above £500 or any other amount. You are assured of a boost in profits with such restrictions.
Customers may opt to buy highly priced goods to qualify for the discount or buy several items. However, you must apply this strategy carefully to avoid a negative impact on sales. Setting a high amount may reduce sales because customers will realize that they are spending beyond their budget. Hence, you must set a reasonable amount while considering the possible effect of sales and profits.
3. Use codes for high margin products
One of the strategies that have proved effective in promoting sales is targeting high margin products. You can give voucher codes for specific products that make the largest contribution to your profits. A company likes Argos UK Offers (Voucher365) different discount rate codes for different products based on the value. You can apply the same strategy in your business. The strategy works best when you have a wide range of products.
One advantage of this strategy is that you do not have to worry about a decline in sales. Customers will have no regrets after the purchase because they bought the necessary items at a lower price. Also, you can give low or no discount for products will low margins to avoid losses.
4. Focus on customer acquisition and retention
Acquiring new customers is costly especially for new businesses in a competitive industry. Retaining customers is also a challenge when customers have many options in the market. Companies spend hundreds of pounds on marketing plans to attract and retain customers. Voucher codes offer an inexpensive way for companies to acquire new customers and retain existing customers.
You can offer discounts that target first-time customers or existing customer or both depending on the financial situation. New customers can get a higher discount for their first purchase. You can then turn them into repeat customers through special offers for the next purchase. They must redeem the voucher code in their next purchase to enjoy the discount.
5. Create urgency for immediate purchase
After determining the best ways to use voucher codes for your business, you need to go further and incentivize customers to redeem the codes immediately. Otherwise, customers will continue with their purchasing routine as long as the codes will be available to redeem. One way to create urgency is to limit the validity of the codes to specific dates or order amount as outlined above. Another way to use the right words when promoting the codes.
You can use phrases like “buy now” or include a buy button right after the voucher to encourage customers to buy immediately. Early purchases help you in financial planning, especially when trying out discount codes for the first time. You can determine early on if the strategy is effective in boosting sales and profits. If the strategy proves effective, you can scale it even before all the vouchers are redeemed.