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BizReport : Ecommerce archives : September 28, 2015

Savvy shoppers abandoning purchases if no discount, voucher available

Incentives play a significant role in consumer purchase decisions and two recent studies reveal that retailers that don't employ vouchers and discounts are missing out on a fair chunk of sales.

by Helen Leggatt

Two recent studies suggest the importance of offering discounts and vouchers to shoppers that are increasingly savvy.

Forrester-commissioned research by coupon website RetailMeNot found that a third of UK shoppers (34%) and more than half of shoppers in France (53%) will abandon a purchase if they are unable to find a voucher. Voucher availability is also increasingly impacting on in-store sales, with nearly a third of shoppers in France and the UK redeeming mobile vouchers in-store.

In another study, this time from Vouchercloud, it was found that start-up retailers and service providers in the UK are missing out on increased sales by refusing to offer customers a discount. According to their study, it isn't until after two years of trading that start-ups begin to offer discounts, although 63% wish they had started sooner.

Offering discounts was found to generate three-figure increases in sales per month, according to analysis of Vouchercloud's own data. The prime motivation for offering discounts was to attract new customers (74%), followed by meeting sales targets (58%), and increasing brand awareness (50%).

"Whatever a company's reasons for offering discounts and voucher codes, it's difficult to argue that it doesn't work," says Chris Johnson, head of operations at Vouchercloud. "Changes in consumer behavior has dictated desire for discounting over recent years, and with the added incentive of a 25% uplift in sales for brands when utilizing a discount-led channel, it should be a consideration for brands who have historically been resistant to lowering margins."

Image via Shutterstock

Tags: discount trends, ecommerce, online shopping

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