Using discounts as a purchase incentive is common practice in e-commerce, and it would be hard to find a store where you won't come across some kind of incentive in the form of a discount.
The prevalence and availability of discounts, however, does not always translate into using them effectively. That's why it is worth thinking through:
- which customers you want to reward with discounts
- what actions you want to reward customers for
- whether they always have to be the same types of discounts
Table of contents
- 01 How do first-purchase discount codes work?
- 02 How to use discounts on a second and additional product?
- 03 How to apply discounts based on order value?
- 04 When to use occasion-based discounts?
- 05 How do discounts on complementary products work?
- 06 How to make use of loyalty programs?
- 07 How to offer discounts on future purchases?
- 08 How do discounts for sharing work?
- 09 How to reward newsletter subscriptions?
- 10 How to use a discount to encourage product reviews?
- 11 Summary
01 1. How do first-purchase discount codes work?
Offer users discounts on their first purchase in your e-commerce. This will encourage them to try your products and increase the chance of loyalty.
You can display information about the discount in many places across your e-commerce, for example as a widget that stays clearly visible while browsing from page to page.
You can also send a discount coupon in the welcome email after a user registers.
02 2. How to use discounts on a second and additional product?
You can offer, for example, a second or additional product at a significantly reduced price (buy one, get one free promotions), which will prompt the user to add more products to the cart.
03 3. How to apply discounts based on order value?
Offer discounts that depend on the order value. These can be either percentage discounts or free products, varied by the value of the order.
04 4. When to use occasion-based discounts?
Offer discounts on products that are seasonal or tied to occasions such as Valentine's Day, Mother's Day, or Christmas. Discounts can also include personalized birthday promotional campaigns.
05 5. How do discounts on complementary products work?
Offer discounts on products that are associated with or complementary to the products in the cart. For example, if a user has shoes in their cart, suggest a shoe dust bag or care accessories.
06 6. How to make use of loyalty programs?
Offer loyalty programs that reward customers for their purchases. Communicate the benefits in the form of discounts for members of your loyalty program.
07 7. How to offer discounts on future purchases?
Offer discounts on future purchases to customers who have made a purchase. For example, if a customer made a purchase worth 200 PLN, they receive a discount code for 10% off their next purchases.
08 8. How do discounts for sharing work?
Offer discounts to users who share your products or pages on social media. This will encourage them to share your store and increase the visibility of your products.
09 9. How to reward newsletter subscriptions?
Offer discounts to users who sign up for your newsletter.
10 10. How to use a discount to encourage product reviews?
This is a rarely used approach in which users are rewarded with shopping discounts in exchange for writing a review. Some e-commerce businesses in which reviews carry significant weight and genuinely affect sales (such as children's products or cosmetics) use discounts to encourage users to leave a review.
11 Summary
Discounts are a powerful tool, but their effectiveness depends on whom you reward and for what. Instead of handing the same discounts to everyone, match the type of discount to the goal: acquiring a new customer, increasing cart value, building loyalty, or collecting reviews. Test different mechanics and watch which ones genuinely lift sales rather than simply eroding your margin.