Affiliate
March 28, 2018

How an Australian retailer utilises coupon codes to increase AOV

Introduction

Coupon codes (also known as voucher codes) are extensively used by commerce businesses and their customers. Their various structures have been written about at length, and we’ve discussed the value of voucher code websites in the past too. In this blog we discuss how a Sports Retailer uses coupon codes to increase Average Order Value (AOV), acquire new customers and increase their eDM database.Sportitude are an Australian sports equipment and apparel retailer based in Adelaide, South Australia. As well as having 3 stores in Adelaide, they sell a huge range of Running, Trail and Netball shoes, as well as apparel and sports equipment. Navigate Digital has managed their Affiliate Programme since March 2016.

Analysis

Sportitude uses coupon codes in 3 ways:- On overlays to drive acquisition to the Sportitude newsletter, served to new customers.- As time-limited ‘spend and save codes’ e.g. Save 10% when you spend $200, Spend $200 and save 10%. These codes are structured to exceed typical AOV.- As brand specific discounts e.g. Save 10% off Brooks, Save 10% off ASICS.In an analysis of more than 7,600 conversions, AOV increased by 6.1% where a code was used. In the final month of the analysis, AOV increased to an enormous 9.7%, in part due to some changes to the checkout process. This is consistent with research conducted in 2011which showed that ‘visitors to coupon websites spent 13% more and expect to spend 16% more, on average, than the typical online shopper’ (Forrester/Whaleshark Media, 2011).Such incremental changes make an enormous difference to profit per conversion and, over the course of thousands of conversions, a healthy contribution to their bottom line.

Summary

Following Sportitude’s example, brands should carefully consider the use of discount codes. They must form part of a value exchange; for example, investing in them on hero categories where they can drive AOV, gaining an email address for future marketing, or gaining an investment in the lifetime value of a particular customer (knowing that the satisfied individual will come back at the beginning of the next Netball season, or as they start to train for their next marathon).It is also worth considering the ancillary benefits to the smart use of code, including the reduced time to conversion which may reduce spend on retargeting with biddable media.Get in touch to find out more on how coupon codes can be beneficial within Affiliate Marketing programmes.For further reading on coupon codes and their effective use:The Value of Voucher Code Partners5 Steps to a Healthy Affiliate ProgrammeManaging Advertiser Voucher codesThe Impact Of Online Coupons And Promotion CodesBy Matt Sheppard, International Account Manager

Related Posts

Impact.com presents "Weathering The Storm."

Affiliate

What you SHOULDN'T be doing with your affiliate program in 2023

Affiliate

Affiliate marketing has become a mainstream channel for businesses to drive growth and increase their revenues. With the increasing adoption of e-commerce and the accelerated shift towards digital, affiliate marketing has emerged as a crucial component of any successful marketing strategy. The economic climate in recent years has been volatile to say the least, and businesses are looking for more cost-effective ways to reach their target audience. This has led to an increase in the popularity of affiliate marketing, as it provides businesses with the ability to reach new customers, increase brand awareness and drive sales, all while having to pay affiliates only for actual results. In the face of such growth and competition, it is crucial for businesses to avoid costly mistakes and make the most out of their affiliate marketing programs. In this blog, we'll be discussing the key mistakes to avoid in 2023 to ensure that your affiliate marketing program is, and always remains a resounding success.‍

Cooking up Affiliate Success: Strategies to Help Grow Affiliate Revenue for Food and Drink Advertisers

Affiliate

Affiliate marketing can be an excellent way for food and drink advertisers to boost their online sales and drive customer acquisition. By establishing relationships with relevant affiliates, brands can tap into a new audience of potential customers while also increasing brand awareness. However, there is more to running a successful affiliate programme than simply signing up affiliate partners – it requires careful planning and management in order to deliver maximum returns. In this article, we provide some essential tips that will help you increase your sales through affiliate marketing in the food and drink industry.

Ready to challenge?

Challenge now

Let's grow
your business

Let's get down to it with a free, no-obligation performance marketing review from one of our amazing team of Navigators.
Your name *
Your email *
Your phone number *
Company name *
What industry sector do you operate in? *
What are your campaign objectives? *
Please provide any other information, such as your target audience, initial budget & anything else you think may be useful *
Thanks for completing that – one of our Navigators will be in touch shortly to talk through your requirements.
Just so you know we’ll either call or email depending on the details you’ve submitted. Our working hours are 9.30am to 17.30pm Mondays to Fridays so we’ll be in touch, we’re looking forward to it!
Oops! Something went wrong while submitting the form.