The growth of ecommerce websites in the last decade has meant that brand loyalty is questioned and often refused by shoppers. Specifically, discount vouchers acting as an incentive can do more harm than good for your brand when a competitor is just a click away. In fact, organisations are wasting billions on loyalty programmes that don’t work like they used to.
One thing in particular can hurt ecommerce sites and brands – not seeing ‘add a discount voucher’ or ‘redeem code’ option until the checkout. Often when confronted with the possibility of discounts or money off, customers turn away from your site (just a few clicks away from purchasing!) and trawl the internet, again, for a better deal. So what can you do to stop this?
Learn the new languages of loyalty
Accenture found in their study that simply providing great service and low prices is no longer the hook keeping customers with you. Potential customers know loyalty rarely pays; they’re ready to swap and change providers or brands if they get a similar or better deal for less. Essentially they need valuable reasons to stay with your brand. Accenture found the top incentives that drive loyalty in 2017 include:
Personalise your discounts
Discount vouchers do still work – shifting stagnant stock, luring new customers and showing customer appreciation are all viable reasons to use them. However, customers are more likely to return to your site when your ‘special discounts’ apply only to them. Use email campaigns or social media to offer them an ‘exclusive’ discount for being such a great customer. This way, they have nowhere else to turn to for a better offer – you’re providing the best one.
…and make sure you regularly have voucher codes
Customers can equally be put off by a brand that offers the availability of discount codes at the checkout, but none can be found online. It’s just as good as you offering an amazing deal on your ecommerce platform and having it always marked ‘unavailable’. If discounts are a part of your marketing strategy, then they must be kept updated or customers will forget you in their frustration. Macy’s famously hosted their own page of discounts and codes to avoid customers leaving their site and trying to find them online.
Make it less obvious, or create custom links from email campaigns
Losing conversions to on your checkout page could possibly be stopped by using a less obvious method such as a discrete form for inputting a discount voucher. Something more effective, however, could be a custom URL from an email campaign. If it’s tailored to your customer as an ‘exclusive’ or ‘thank-you’, you’ve helped your customer achieve what they wanted (cheaper goods by a brand offering a personalised discount), and they’re now more likely to visit again. This also means you could rid your site entirely of the ‘discount’ option and make it clear with email offers and vouchers that discounts will be offered to customers, rather than customers having to hunt for them themselves.
There’s a lot more to the psychology of ecommerce than meets the eye; and luckily, Digivita offers help from industry professionals with years of experience adapting ecommerce sites for the best conversions. Contact us today to see how we can help you.