My Voucher Codes is the perfect example of mainstream currency voucher codes. He discovered that US coupon sites were a profitable business model and realized that it was not being replicated in the UK. So he launched his company with a £300 website. The business was then sold eight years later for more than £60m.
Although I am certain that this is due to good management, it is also true, contrary to popular belief. However, recession-generation businesses can still perform well if the mood of people is taken into account, as is the case with this business.
Overall, financial pain is lessening for many. But our love of coupon codes isn’t diminishing. Although their use was once a covert operation, we now shout louder about our discounts.
Consumer research undertaken amongst 2,000 UK adults (via ICM research) for digital marketing agency,
Browser Media found that four out five UK adults had used at least one voucher in the past year. Some claim they have used more than 50. Although women are more likely (18 per cent vs. 15%) to use discount coupons and codes, men believe that they are smarter than women (44% vs. 40%) when it comes finding a great deal online.
Referring back to the theme about our willingness and openness, 41% of respondents said that voucher codes were much more socially acceptable now than they were before.
You can find more details about the research on the Browser Media Blog. But, for retailers considering a voucher code strategy, here are some interesting ideas:
28% of consumers say they compare prices online.
13% of people dislike checkout processes that don’t allow for the code to be applied at all. Consumers are more comfortable if the discount is visible while the product/shopping pages are still open, before they checkout.
One in ten people (11%) will use a discount code when it is remembered by the retailer using real words and dates. Random letters or numbers are less likely to be remembered.
You can offer a discount code box to your website and customers will abandon checkouts more often if they are looking for it. Depending on the type and quantity of your offers, you might also see an increase in sales volume and value.
It is not possible to create a discount coupon strategy quickly. However, it is worth testing and measuring your offers on a regular basis in order to assess their success and inform future decisions. The fact that discount codes are here to stay is proof enough that online retailers should seriously consider whether this method of merchandising can be profitable for them.
