How to use discount coupons to increase your eCommerce sales

11 min read
Selina Bieber

In 2022, over 90% of households claimed they had used at least one coupon in the last 12 months. Customers are always looking for ways to get their essential products and services at lower costs and better quality. One mechanism that can contribute to sales is coupons. Giving customers the option of a discount coupon can be a huge motivator that helps drive their purchasing decision.

According to Save My Cent Coupons seemed to be used regardless of income level. Survey results showed that 86% of households making over 0,000 a year had used a coupon in the last 12 months.


For this particular article, we will discuss the following:

Let’s start!

Understanding the Power of Discount Coupons

Discount coupons have become a powerful tool in the world of eCommerce. They're not just a way to entice customers to make a purchase; they're a strategic element of effective coupon marketing. By offering a percentage off, free delivery, or a gift with a purchase, you can increase sales, boost eCommerce sales, and enhance customer loyalty. Whether you're operating in Dubai, Abu Dhabi, or anywhere else in the UAE, discount coupons can be a game-changer for your online store. Even global giants like Amazon leverage the power of discount coupons.

What Are Discount Coupons?

Discount coupons are shareable and promotional sale codes that can be used to reach a specific target audience and offer some products for sale at a lower-than-normal price - with a discount.

Why should you use coupons in eCommerce?

Discount coupons can increase business:

  • Coupons seemed to be used regardless of income level. Survey results showed that 86% of households making over $200,000 a year had used a coupon in the last 12 months. (Source: Save My Cent)

Related: How to increase online sales from your eCommerce website

  • Customer acquisition: The survey from RetailMeNot also found that 80% of first-time customers report being swayed by a targeted discount of some kind.
  • Customer retention: Offering discounts to your loyal customers is an effective way to thank them for their ongoing support—and to keep them coming back for more. According to the 2019 Loyalty Barometer Report, “61% of consumers say that the most important way a brand can interact with them is by surprising them with offers or gifts just for being a customer.”

On the other hand, according to Juniper Research, there will be a 94% increase in digital coupon redemption by 2022, and the global mobile coupon market is expected to grow by more than 56.5% CAGR by 2025.

So, why don't you take advantage of this and use some online coupons on your e-store?

The Impact of Discount Coupons on Consumer Behavior

Discount coupons significantly influence consumer behavior. They create a sense of urgency that encourages customers to act quickly, fearing they might miss out on a good deal. This is particularly effective in the UAE, where online shopping is popular, and consumers are always on the lookout for the best coupons and promo codes. Voucher codes for popular brands like Adidas, American Eagle, and Lacoste are particularly sought after.

a sign that says coupons on it

The Psychology Behind Discount Coupons

The psychology behind discount coupons is fascinating. When customers see a discount, it triggers a sense of satisfaction and excitement. It's the idea of getting more for less, that appeals to our innate love for value and savings. This is why sitewide discounts or "off on everything" deals are so effective, especially in trending online stores in the UAE.

6 types of discount coupons to use

If you want to use discount coupons in eCommerce and want to see a measurable uptake in sales, you need to think about the type of coupon to use in the first place.
Here are six main discount coupon types which can make your business more successful.

1- Money off:

You can offer an amount off. For example, “$10 off your next purchase.”

2- Percentage off:

This is one of the most popular types of coupons which you will see all the time in eCommerce stores. You can offer a percentage off, for example, "Get 15% off an item price."

3- Exclusive discount:

You can keep discounts exclusive to specific fans by sharing a link to your discounted product. This will make the customer feel special.

4- Evangelist:

You can sometimes reward your loyal following of fans and customers by giving them a special discount coupon as a thank you.

5- Pre-launch discount coupon:

If you are launching a new version of your e-store or a new product, you can promote it by giving your first customers a discount. For example, your first ten customers get 50% off.

6- Up-sell and cross-sell discounts:

You can give your customers an incentive to buy additional products or complementary products by giving them a discount coupon code in an email following their first order.

Related: 9 email campaign ideas for Black Friday deals

Calculating and Determining the Discount Coupon’s Rate

A simple equation exists that you can use when you need to calculate the discount coupons’ rate:

Coupon Rate = Total Annual Coupon Payment / Par Value of Bond * 100%

If you use this equation correctly, you can calculate any coupon rate.
Here’s how to achieve this equation in your real business in only three simple steps.

pink pig coin bank on brown wooden table

Steps to Calculate the Discount Coupons’ Rate:

  1. Figure out the face value of the issued bonds: you can do this step if you get some help from the funding proposal or the company’s accounts department.
  2. Determine the number of periodic payments made during the year, then add them up to calculate the total coupon payment during the year.
    Note: if you find that the periodic payments are equal, you will need to multiply them by the total annual coupon payment and the number of payments made in the year. Use the following equation:

    Total annual coupon payment = Periodic payment * No. of payments in a year.

  3. Divide the total annual coupon payment by the bond’s par value and multiply by 100%.
person holding a credit card in front of a laptop

Implementing Discount Coupons Effectively in eCommerce

Here are some important tips on how to use discount coupons in eCommerce correctly.

  • Create a dedicated landing page if your coupons target a specific category of items or a set of items.
  • Make sure that you create simple and easy-to-use coupons to make your customers' experience quick and fun at the same time.
  • Always generate a simple coupon code to make it easy for your customers to enter it anytime without having to search for it. We recommend making your coupon code a maximum of 6 characters.
  • Create a sense of urgency around your coupons to make your customers think that they will lose out on the discount if they don't use them immediately.
  • Keep your coupon active for a short and limited time to increase your sales in a shorter period.

You can also check our ‘White Friday sale tips to help market your e-store’ guide for more tips.

The Potential Risks of Using Discount Coupons and How to Mitigate Them

While coupons can be a powerful tool for boosting sales, they also come with potential risks. Overuse can lead to a decrease in the perceived value of your products or services. Customers may start to question the quality of an item that's always on sale. To mitigate this, balance your discount strategies. Offer discounts on select items like women's fashion or home decor products, or during specific periods, such as the launch of a new product.

Tracking the Success of Your Discount Coupon Strategy

To ensure your discount coupon strategy is effective, it's crucial to track its success. This involves monitoring key metrics and using the right tools.

Key Metrics to Monitor

Key metrics to monitor include redemption rate, increased sales volume, and customer acquisition and retention rates. For instance, if you're offering AED 20 off on purchases in your Dubai store, track how many new users redeem this offer and how it impacts your sales.

Tools for Tracking Coupon Success

There are various tools available for tracking coupon success. Google Analytics, for example, can help you understand how customers are interacting with your discount offers. You can also use coupon management software to track redemption rates and other key metrics.

Leveraging Social Media for Your Discount Coupons

Social media is a powerful platform for promoting your discount codes. With a significant number of consumers in the UAE active on social media, platforms like Instagram and Facebook can be effective for reaching your target audience.

blue red and green letters illustration

Best Practices for Promoting Coupons on Social Media

When promoting coupons on social media, make sure your posts are engaging and visually appealing. Use clear and compelling images, and don't forget to include all the necessary details about the discount. Exclusive coupons can also create a buzz, encouraging more shares and likes.

Case Study: Successful Coupon Promotion on Social Media

A great example of successful coupon promotion on social media is Namshi, a popular online fashion retailer in the UAE. They regularly offer exclusive coupon codes on their Instagram and Facebook pages, driving significant traffic to their website and increasing sales.

How to add discount coupons in GoDaddy E-store easily?

GoDaddy E-store allows you to add discount coupons easily. Customers who receive the coupon code can apply it at checkout.

  1. Go to your GoDaddy product page.
  2. Scroll down to 'Partner Programs' and select Manage next to the e-store you want to customize.
  3. In the left panel, click eCommerce, and then click Manage Store.
  4. Click Marketing, and then click Discount Coupons.
  5. Click + Add New Coupon.
  6. Complete the necessary fields and click Save.

When creating a coupon, you have the following options:

  • Name. Add a coupon name for your convenience. Only store owner can see it.
  • Code. To create a random code, click the generate. Alternatively, type your own code (for example summersale_coupon).

    NoteThe code is case-insensitive.Your customers will use a code to receive a discount. The discount can be one of the following:

    • Free shipping
    • Absolute discount (for example, $5 off)
    • Percent discount (for example, 10% off)

Try it out!

Using coupons in eCommerce can be a powerful marketing tool for you and your business. It can help you increase your sales and gain new customers quickly, so what are you waiting for?

Remember: you can easily calculate and determine the coupon’s value by using the above equations!
If you have further questions, please do not hesitate to contact us if you need help adding the discount coupons to your GoDaddy E-store.

Conclusion: Harness the Power of Discount Coupons for Your eCommerce Business

In conclusion, discount coupons are a powerful tool for any eCommerce business. Whether you're based in Dubai, Abu Dhabi, Sharjah, or anywhere else in the United Arab Emirates, implementing a strategic coupon marketing plan can significantly boost your sales and customer loyalty. From offering sitewide discounts to promoting exclusive codes on social media, there are numerous ways to leverage the power of discount coupons. However, it's crucial to track the success of your strategies and adjust them as necessary to ensure they're effective.

For instance, offering AED 50 off on purchases at your online store, or providing AED 200 off on specific brands like Bloomingdale or Body Works, can attract a lot of customers. But it's essential to track how these discounts are affecting your sales and customer acquisition rates.

Moreover, offering hassle-free shopping experiences, such as easy-to-use promotion codes and credit card payment options, can also enhance customer satisfaction and loyalty.

Remember, the key to a successful discount coupon strategy is balance. Offering too many discounts can risk devaluing your products, while offering too few may not attract customers. Find the sweet spot for your business, and you'll be on your way to increased sales and customer loyalty.

So, start harnessing the power of discount coupons today and watch your eCommerce business thrive. And don't forget to check out our FAQs for more information on how to use discount codes effectively. Happy selling!

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