Online trading advantages and disadvantages of discount coupons

Arte e Informatica
Marketing per ecommerce

of over 58.6 billion euros, a figure that tends to increase over the years, as users have understood how much making the purchase of a good online has an advantage in terms of time and sometimes also in terms of savings. In fact, compared to the previous year, e-commerce has seen an increase of six percentage points.
It is now common practice before buying a particular item to carry out several online searches to understand where the aforementioned costs less.
Many Italians shop comfortably at home, convinced that they are enjoying a huge benefit in saving money. Basically this is also true, yet the phenomenon of the so-called abandoned cart is more and more frequent. The abandoned cart is a rather common problem for companies that sell online, as the user, while placing an item in the virtual cart, does not subsequently proceed with the purchase of the aforementioned. The idea that this phenomenon occurs at the checkout of a physical store is almost impossible, because the decision process occurs first. In e-commerce, on the other hand, the choice to buy a specific item almost always takes place when the items are placed in the cart and proceed with the practice.
It is therefore reasonable for companies to study an effective strategy to initially direct the interest of the subjects towards the brand and, immediately, guarantee the real purchase, thus avoiding the user leaving the shop before shopping. Clearly the reasons for this are different and will be explained below.

What are the real reasons for abandoning the shopping cart before making a purchase?

The phenomenon of the abandoned cart has always been a debate among marketers. An unrealistic conclusion of the buying process by the buyer is clearly a wake-up call for the company. The reasons can be different, and they do not always derive from lack of interest from customers, which is why it is good to pay attention to the issue:

curiosity on the part of the user to really see the price of the item of interest, without any intention of completing the purchase on the spot;
you like the article but the registration procedure on the site is too cumbersome and complex;
Shipping costs that are too high for which the user prefers to buy the good in a physical store as the economic benefits of purchasing online no longer exist;
the conditions of return are not clear;
too long to receive the goods at home.

These reasons are not always attributable to the company itself, but for its part it can certainly improve and streamline some of the procedures of its e-commerce.
A common practice in online commerce is the use of discount coupons for customers. Basically it is clearly a great way to attract the attention of potential customers, but it is necessary for the company to apply some good rules so that this tool does not have the opposite effect, that is to push the user away.
The distribution of vouchers is a very frequent mechanism used above all in the United States, but in recent years, thanks to the economic crisis and the increase in e-commerce turnover, many brands have also implemented this procedure in Italy.
The reasons that push the use of this promotional activity are mostly to increase the turnover and favor the purchase process, thus avoiding the abandonment of the virtual cart. Furthermore, it is currently also often used as a means to make themselves known by more users and thus attract their curiosity towards the product in question. It is therefore important, today more than ever, that the company uses this powerful tool in the best way, without incurring some errors that do not guarantee an effective result in terms of efficiency.

Attract the user with the use of a discount coupon

The discount coupon, also known as a promotional code, in recent years has become increasingly popular in the world of e-commerce. Through an alphanumeric code, and not only, the customer can take advantage of a promotion dedicated to him and / or a discount in terms of savings to be deducted from his own expense. To date, due to the frequency in the use of these vouchers, there are different types:

voucher obtainable for a previous purchase;
uone obtainable for a minimum cost;
voucher obtainable by subscribing to the newsletter on the official website of the brand;
voucher obtainable thanks to the registration procedure on the company website.

The promotional tool therefore has the purpose for the customer to secure an offer dedicated to him, while for the company, in addition to the aforementioned advantages, also the acquisition by the buyer of retaining the same and ideally securing a position. of prestige in the mind of the future buyer. Clearly it is logical to think that a user, attracted by the use of this type of promotion, uses the price as a discriminator. It is usual to believe that a strong discount, especially if it derives from a promotional code, is synonymous with poor quality, and it is therefore the company's task to break down these prejudices by proving the opposite. It is therefore essential that there is no abuse of these discounts in order not to damage the brand image in terms of quality and value.

Discount coupon: how to get it

As previously argued, there are so many ways to catalyze user interest in your brand to the detriment of your competitors. There is certainly no single and direct line that guarantees all this, but generally the discount coupons follow these types

classic discount coupon, it is an automatic discount that is applied in the final step just before the purchase. The user must not enter any type of alphanumeric code to obtain the price reduction, which is why it is designed to encourage the buyer to actually conclude the procedure, without changing his mind at the last moment. In this case, the customer already knew the brand as he independently decided to browse the online shop
discount coupon to be downloaded manually, it is a discount that the customer obtains independently, perhaps from the company's official website or through other platforms (forums, social channels, etc. etc.). In this case, the customer could not even know the brand firsthand and be attracted by the company discount
discount coupon obtained thanks to the official App of the reference brand, it is a discount that encourages users to download the application, offering them promotional codes for future purchases. The company already occupied a place in the minds of the subjects and the discount coupon is just an excuse to make a purchase ..
discount coupon with a promotional code, it is an offer that is probably the most used by companies but which, however, has strong limits if not designed correctly. It is a good rule for the company not to take advantage of this type of marketing activity too often, as the user could postpone the purchase, certain that in the future he will receive the same price reduction and the same treatment.

It is easy to understand how there are so many coupons to apply to users who intend to make their online purchases, but this must be given by companies in a thoughtful way, only after a careful marketing strategy. An excess of discount coupons can be counterproductive for the company and trigger a decrease in the perceived value of the aforementioned brand in the minds of future customers.

The channels where you can disclose the discount coupons

In 2020, online commerce in Italy had a turnover of over 58.6 billion euros, a figure that tends to increase over the years, as users have understood how much making the purchase of a good online has an advantage. in terms of time and times also in terms of savings. In fact, compared to the previous year, e-commerce has seen an increase of six percentage points.
It is now common practice before buying a particular item to carry out several online searches to understand where the aforementioned costs less.
Many Italians shop comfortably at home, convinced that they are enjoying a huge benefit in saving money. Basically this is also true, yet the phenomenon of the so-called abandoned cart is more and more frequent. The abandoned cart is a rather common problem for companies that sell online, as the user, while placing an item in the virtual cart, does not subsequently proceed with the purchase of the aforementioned. The idea that this phenomenon occurs at the checkout of a physical store is almost impossible, because the decision process occurs first. In e-commerce, on the other hand, the choice to buy a specific item almost always takes place when the items are placed in the cart and proceed with the practice.
It is therefore reasonable for companies to study an effective strategy to initially direct the interest of the subjects towards the brand and, immediately, guarantee the real purchase, thus avoiding the user leaving the shop before shopping. Clearly the reasons for this are different and will be explained below.

Email, email communication is probably one of the first channels with which the company approaches the customer. Receiving a discount coupon by e-mail has beneficial effects on the customer's mind because he is convinced that he has received an advantageous offer in a completely private and unique way.
Website, disseminating a voucher thanks to the official company channel is an excellent strategy to increase the views of the aforementioned, and thus offer prestige to the reference brand. However, this type of communication is not always easy as not all customers really know they can benefit from the discount by purchasing directly from the company website.
Social Network is certainly the most used way at the moment thanks also to the millions of users registered in the various social channels (Facebook, Instagram, Twitter, TikTok) and thanks also to the constant presence of the many Influencers who show themselves to the world every day. As simple as it may seem, the "company-influencer" duo is not an easy relationship. Choosing a public figure to advertise a company is a rather complex activity, as the subject must in all respects have a profile that reflects and respects the values of the brand. It is therefore advisable to choose this type of communication carefully, especially when it comes to discount coupons, so as not to create the opposite effect in the brain of customers and decrease the evaluation of millions of people.

Disadvantages of discount coupons

If up to now we have talked about how to disclose discount coupons and the advantages they guarantee, it is good to remember that there are also disadvantages in the constant use of this practice. A company has so many ways to make itself known by customers and / or increase its turnover, one of them is the issuance of discount coupons. If in theory giving promotions to customers is certainly something positive, in the long run an excessive use of coupons as the main promotional communication activity is undoubtedly counterproductive for the brand.
When the user is uncertain about a purchase, they will not necessarily opt to buy the least expensive item among the market proposals: many people associate low price with low quality. The same thing happens for discount coupons: not all users are attracted to this marketing strategy precisely because they are convinced that behind a discount there is a good of poor quality or in any case of average quality. It is clear how the disclosure of discount coupons in theory can lead to a temporary increase in revenues but in the long run, if the company uses only this tool to attract the interest of users, it is clearly counterproductive. The reasons briefly can be: o

the customer, despite being interested in the good, postpones the purchase procedure because he is certain that he will also be able to enjoy the same discount at a later time.
reduction in the value of the brand and therefore the article object of interest mathematically loses its value, no longer offering the customer prestige deriving from its possession
discounted price, especially if that is the constant. In people's eyes, the idea is established that the price reduction largely derives from a poor quality of the value of the asset.

It is normal that all this happens above all for all non-primary goods, but above all for hi-tech items and for goods considered luxury. The low price / poor quality combination is accentuated above all for technological goods and secondary goods.
In theory, it is therefore possible for companies to argue that good discounts in online commerce have advantages but also disadvantages. It is in the interest of the numerous activities to understand at what time and how to take advantage of these promotions and when, instead, it is good to look for other strategies that capture the attention of future customers.

Author: Alessio Hocevar

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