Did you know that using coupons smartly can actually boost your profits? It’s a common myth that coupons are only about giving discounts and sacrificing profits. In reality, leveraging different types of coupons strategically can lead to more engaging and profitable shopping experiences for both businesses and customers. According to BigCommerce, a whopping 90% of online customers prefer coupons. But what types of coupons are they really after? Let’s delve into the world of coupons and uncover the ones that truly make a difference.

Why Should You Offer Different Types of Coupons?

Offering different types of coupons emerges as a powerful tool for businesses seeking to drive sales, enhance customer loyalty, and gain a competitive edge. 

Attract More Customers: Coupons are like magnets that draw in bargain hunters, increasing foot traffic to your online store.

Boost Sales: Offering coupons can encourage customers to make that purchase they’ve been eyeing, leading to more sales.

Boost Average Order Value: Encourage customers to spend more with strategic coupon offers, ultimately increasing your revenue per transaction.

Clear Out Inventory: Got some items gathering dust on your shelves? Coupons can help you move them out and make room for new goodies.

Build Customer Loyalty: Customers who score a sweet deal are more likely to return for future purchases, fostering long-term loyalty.

Gain an Edge Over Competitors: Stand out in a sea of online stores by offering unique and enticing coupon deals that your competitors can’t match.

Psst… Want to wow your customers with a wide range of coupons? Click here to start! 

What are the Different Types of Coupons?

1. Percentage-Off Offers

These coupons entitle shoppers to a discount based on a percentage of their total purchase. For instance, a 10% coupon means customers receive 10% off their entire order. They’re versatile and appealing to bargain hunters, making them effective for attracting new customers or during store-wide sales.

2. Fixed-Amount Discounts

Fixed-price coupons provide a set rupee discount regardless of the purchase total. For example, a Rs.100 coupon means customers save Rs.100 on their order. Unlike percentage-based discounts, these coupons offer consistent savings and are suitable for any online store.

3. BOGO Deals (Buy One, Get One)

With BOGO coupons, customers receive a free item when they purchase a specified item. For instance, buy one shirt and get another free. These types of coupons are excellent for boosting sales of specific items and clearing out excess inventory.

4. Free Shipping Offers

Free shipping coupons waive shipping costs for orders. They’re an effective incentive for price-conscious shoppers and can improve conversion rates. Offering free shipping for orders over a certain amount encourages higher spending to qualify for the discount.

5. Product Bundle Discount

Customers receive a fixed or flat discount when purchasing a specific combination of products. For example, buying Product X entitles them to a discounted price on Product Y. This encourages customers to explore complementary products while enjoying savings on their purchase.

6. Percentage Discount on Product Bundle

This type of coupon offers a percentage discount on a bundled purchase of two or more items. For instance, customers buying Product X receive a percentage discount on Product Y. It incentivizes bulk purchases and drives sales by offering savings on bundled products.

7. Quantity-Based Pricing for Product Bundle

Customers can purchase a set quantity of one product (X) and a different quantity of another product (Y) at a fixed price (Rs R). For example, buying ‘n’ quantities of Product X and ‘m’ quantities of Product Y together costs Rs R. This pricing strategy encourages bulk purchases and simplifies pricing for bundled products.

8. Percentage Discount on Quantity-Based Product Bundle

Customers purchasing a specified quantity of one product (X) and another quantity of a different product (Y) receive a percentage discount on their total purchase. For instance, buying ‘n’ quantities of Product X and ‘m’ quantities of Product Y together qualifies for a ‘P’% discount. This type of coupon motivates customers to buy in bulk and rewards them with savings on bundled products.

9. Automatic Discounts

Automatic coupons are applied to purchases without the need for customers to enter a code. For example, shoppers automatically receive 10% off their purchase at checkout. These coupons enhance convenience, ensuring customers don’t miss out on potential savings. These types of coupons are particularly useful for loyalty programs or registered users.

10. Loyalty Points Programs

Loyalty points are earned based on the amount spent at a store and can be redeemed for discounts on future purchases. For every dollar spent, customers earn points that translate into savings. Loyalty points foster repeat business and are easy to implement, making them an effective tool for retaining existing customers.

11. Gift Cards

Gift cards offer recipients the freedom to choose their preferred product or service, making them an ideal gift option. By providing gift cards, you not only give customers flexibility but also establish a direct line of communication for future promotions.

12. Free Gift with Purchase Coupons

These coupons reward customers with complimentary items when they buy specific products, adding value to their purchase. They’re perfect for clearing out excess inventory while delighting customers with unexpected bonuses.

13. After-Purchase Coupons

After-purchase coupons, activated post-transaction, provide additional discounts or benefits for future orders. They’re a strategic tool for encouraging repeat purchases and fostering customer loyalty, offering a seamless way to reward ongoing patronage.

14. Mystery or Spin-the-Wheel Coupons

Injecting an element of fun, mystery or spin-the-wheel coupons engage customers with interactive experiences. Perfect for contests and giveaways, they amplify brand engagement and foster a sense of excitement among shoppers.

15. Influencer Coupons

Leveraging influencer partnerships, these coupons tap into existing audiences to expand brand reach and credibility. Ideal for building trust and driving word-of-mouth marketing, they capitalize on influencer endorsements to attract new customers.

16. Usage-Limited Coupons

These coupons restrict usage to a set number of times, safeguarding profitability and preventing abuse. By imposing limits, you maintain control over discount distribution while maximizing their effectiveness.

17. Time/Schedule-Limited Coupons

Time-bound coupons create urgency by restricting redemption to specific periods. This tactic instills a sense of immediacy, prompting customers to act swiftly to capitalize on limited-time offers.

18. Cashback/Rebate Coupons

Cashback or rebate coupons reimburse customers for a portion of their purchase, providing tangible savings post-transaction. They incentivize spending and offer financial incentives that resonate with cost-conscious shoppers.

19. Spend-Over Coupons

These coupons trigger discounts once a minimum spending threshold is met, encouraging customers to increase their order value. They’re a simple yet effective strategy for boosting sales and rewarding larger purchases.

20. Welcome/First Order Coupons

First-order coupons extend discounts to new customers, fostering goodwill and incentivizing initial purchases. They’re a powerful tool for nurturing customer relationships and encouraging repeat business.

21. Members-Only Coupons

Exclusive to loyal customers, members-only coupons reward ongoing patronage and reinforce brand loyalty. By offering special discounts or perks, you cultivate a sense of exclusivity and appreciation among your most dedicated shoppers.

22. Pre-Launch Coupons

Pre-launch coupons generate excitement and anticipation for upcoming product releases or services. Offering discounts ahead of launch builds anticipation and drives early adoption among eager customers.

23. Holiday/Seasonal Coupons

Tailored to seasonal events or holidays, these types of coupons capitalize on consumer spending trends and festivities. They’re a strategic way to align promotions with relevant occasions and drive seasonal sales.

24. Abandoned Cart Coupons

Designed to recover lost sales, abandoned cart coupons incentivize customers to complete their purchases. By offering discounts to shoppers who abandon their carts, you reduce cart abandonment rates and recapture potential revenue.

25. Customer Milestone Coupons

Celebrating customer milestones, these coupons reward loyalty and reinforce customer relationships. Whether it’s a loyalty anniversary or an order milestone, these coupons acknowledge and appreciate customer loyalty.

26. Survey Submission Coupons

Survey submission coupons incentivize customer feedback by offering discounts for completing surveys. They’re valuable for gathering insights and building customer relationships through engagement.

27. Subscription Coupons

Subscription coupons incentivize sign-ups for subscription services or newsletters, driving conversions and customer engagement. By offering discounts to subscribers, you increase sign-up rates and foster ongoing engagement.

28. Referral Coupons

Harnessing the power of word-of-mouth marketing, referral coupons incentivize customer referrals with discounts for both referrers and new customers. They’re a cost-effective way to acquire new customers and leverage existing networks for growth.

Unlock Savings with Razorpay Coupons 360

When it comes to online shopping, nothing excites customers more than the promise of savings. Recognizing this, Razorpay introduces Coupons 360 as a cornerstone feature of Magic Checkout, revolutionizing how e-commerce businesses engage with discounts and promotions.

Why Choose Razorpay’s Coupon 360?

Versatile Coupon Types: From percentage-based discounts to BOGO offers, Razorpay’s Coupons 360 caters to different types of coupons, empowering merchants to craft enticing deals tailored to their audience’s preferences.

Effortless Management: Bid farewell to cumbersome coupon management. With Razorpay’s user-friendly dashboard, merchants can effortlessly create, track, and analyze coupon performance, all while retaining full control over their campaigns.

Seamless User Experience: Seamlessly integrated into Magic Checkout, Razorpay’s Coupon 360 ensures a frictionless checkout experience. Customers can easily apply discounts, combine offers, and unlock additional savings with just a few clicks, enhancing convenience and satisfaction.

Drive Revenue Growth: Beyond convenience, Razorpay’s data-driven approach predicts a substantial increase in conversion rates, translating into significant revenue growth for businesses. With projections indicating a potential uptick of up to 200 basis points in conversion rates, merchants can expect a notable boost in their bottom line.

With Razorpay’s Coupons 360, you can offer different types of coupons to captivate customers and drive sales like never before!