Considering the amount of choice and variety shoppers have these days, customer conversions are becoming crucial. It is becoming difficult to both attract and sustain customers. Marketers are looking for creative and novel ways to incentivise purchases and for Consumers Conversion. In such a situation, vouchers, like a cashback voucher, discount code, loyalty codes, and so on, are becoming quite relevant which are being offered by various companies such as fave pay.
A common misconception about vouchers is that they cause the business to lose money. On the contrary, their benefits may outweigh the costs. They provide incentives for customers to go through with the purchase, make more purchases, and encourage new customers to join. Several more benefits have been listed below .
Completing purchases- Consumers Conversion
The shopping cart or checkout cart is where most customers decide to abandon shopping. This is especially true for specific industries and when shopping is done online. This results in revenue loss and discouragement. However, voucher codes are one of the ways to handle this problem. Shoppers may be leaving before completing the purchase hoping that a new and better deal can be made later. E-gift vouchers reassure them that they are getting the best bargain. This, combined with features like a ticking clock, makes it more likely for them to go through with the order.
Attracting new customers
It is a known fact that attracting new customers is more expensive than maintaining existing customers. Vouchers are a great addition to your marketing toolkit in this regard. Vouchers make it a lot easier to get over the hesitancy to make that first purchase with a new brand. They incentivise buyers to opt for your brand over the competition, which can be crucial.
Retaining existing customers
If you aim to expand the reach of your business, it is equally essential to keep existing customers loyal to the brand. Not only does this reduce revenue loss, but it also increases the chances of them recommending your brand to their known ones. Taking existing clients for granted is a sure way to lose the marketing game. In this sense, vouchers are a blessing in disguise to retain existing customers.
Vouchers reward the customers for being loyal to the brand and make them feel valued. They are a reminder for them to continue shopping with the brand. Vouchers ensure that the customers are more likely to continue shopping with you and tell others about the advantages of shopping with you. Vouchers are beneficial to give customers the sense that they are getting an exclusive deal. During the pandemic, leveraging E-gift vouchers to retain customers in the virtual shopping world is especially important.
Purchases and profit
Marketing is a tool to increase profit. Increasing the number of customers and maintaining them would only work if supplemented by the act of purchasing. In this regard, vouchers are a great help as they increase the likelihood of spending a more significant amount by the consumers to redeem the vouchers. It can work as a nudge for customers who are reluctant to take the plunge. For instance, a customer may choose to spend more money and prevent procrastinating on the purchase if a cashback voucher is waiting for them.
Technological enhancements like gamification can take the idea of vouchers even further. You can incorporate spending goals or targets to create a sense of reward. For example, if customers feel more responsible for getting a bigger discount, they would be more likely to purchase.
To conclude, simplistic analysis of vouchers may make it seem like a loss of revenue. However, a more nuanced approach reveals that a well-planned and executed voucher plan may increase the chances of profit and help grow your business to increase consumers conversion.