Do Coupon Codes Hurt Online Sales Conversions?

Are online retailers driving customers AWAY from their sites?

I've noticed in Technology Evangelist's web stats that we get a fair amount of traffic for "coupon code" related searches. With a little digging, I noticed we rank second to a Minneapolis based grocery delivery service for the term [simon delivers coupon code], which made me wonder, "Why are people searching for that term?"

Here's my theory. Simon Delivers customers (and prospective customers) are faced with a question during checkout that they don't have an answer to: "Enter Simon Codes, separated by commas." Customers reaching that box on the form put their checkout on hold while they go over to Google and search for a code. Why not, right? They may be able to save $10 for a minute's worth of work if they find a coupon code. That's certainly justifiable.

But what if they don't return? Perhaps the phone rings and they get distracted rather than finalize their order. That's not good. This could be particularly troublesome for customers who aren't yet using tabbed browsing or multiple windows to surf the web. That crowd is truly abandoning their shopping cart in search of a coupon.

This is particularly interesting in Simon Delivers' case since, unlike most retailers who have one coupon form, they have dozens:

Every single product in the shopping cart has an associated coupon field! Could this drive particularly frugal customers to seek out coupons for each and every product in their shopping cart?

Is there a better solution? I believe Amazon may have found one with the form they put on the right-hand side of the checkout screen:

Why is that better? The wording infers that this is probably something you don't have. The right-hand location makes it perfectly accessible, but not the road-block putting in in the checkout path causes, and by having one box for all types of coupons, the page is simpler.

Have you ever stopped to look for a coupon during checkout?

Hundreds of well-known online stores have a place within their shopping cart for a "coupon code." A coupon code gives a percent or dollar amount off your purchase. If you don't know the code, you can't take advantage of the discount. You can find these secret discount codes and coupon codes listed on many sites across the internet but the problem with these sites is that they're usually personal homepages and they don't maintain their lists!

There is a lengthy merchant/affiliate discussion at ABestWeb - To
coupon or NOT to coupon - THAT is the question - on this topic that covers a lot of ground. I personally look for coupon codes when I'm shopping online, but I usually want something specific at a particular merchant, so I complete the process even if there isn't a code. I agree with "Wedding anniversary gifts" that there are a lot of coupon sites that don't maintain their data, and it can be frustrating for the consumer when they think they will get a discount, but the code doesn't work.

To all merchants, make sure that the coupon codes you give to your affiliates and customers are working. To those who are working as affiliates, confirm the codes that you give to your customers so you won’t lose any commission. To customers, make sure that you get coupon codes from credible sources.

Comments

1. Posted by: Online Shopping on June 29, 2007 6:19 PM:

I myself have stopped occasionally while I'm in the checkout process to look for a coupon code. But honestly, I don't think it really keeps businesses from getting the conversion. If there isn't a coupon code out there, then they might get a little miffed. But what usually keeps people from finishing the process is when they forget something and then will have to fill out all of their information again to finish the purchase if they navigate away. As long as you have a shopping cart and keep track of your customer's purchase you shouldn't have a problem. If you don't have a shopping cart that stays full even if they accidentally shut the window, then you deserve to lose their business at this point in the internet game. Maybe you shouldn’t allow customers to enter manufacturer coupons online…it might be easier to let customers that use your online service rent a scanner and then they can scan their physical coupons but not use digital ones. That’s really the only way to ensure that they will not navigate away if you want them to be able to use coupons. Or you could just have a pop up reminding them that they are going away from the page.

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