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How To Use Coupons For E-Commerce Customer Retention (Full Guide)

How To Use Coupons For E-Commerce Customer Retention (Full Guide)

As an e-commerce business owner, I know that getting new customers is important for growing my business. But it’s just as crucial to keep the customers I already have. E-commerce customer retention means keeping your current customers happy and coming back to buy from you again and again. It’s a big deal because it directly affects how successful and profitable your online store is.

Let’s break it down with some numbers. Studies show that it’s five times more expensive to get a new customer compared to keeping an existing one. Plus, if you can increase how many customers stick around by just 5%, you could see your profits go up by a lot—anywhere from 25% to 95%.

These numbers make it clear: in the crowded world of online shopping, holding onto your customers is key. So, in this article, we’ll talk about how using coupons can help you keep your customers coming back for more, boosting your e-commerce success!

Understanding Customer Retention In E-Commerce

To keep customers coming back to your online store, it’s important to know what makes them stick around. One key factor is making their shopping experience smooth and personalized.

This means having a user-friendly website, suggesting products based on their preferences, and ensuring an easy checkout process:

Shopping cart recommendation example
Shopping cart recommendation example (click to zoom)

Excellent customer service is also a big deal. Responding quickly to questions, fulfilling orders efficiently, and making returns hassle-free all contribute to a positive customer experience.

Additionally, engaging with customers on an ongoing basis is another way to build loyalty. This could involve sending personalized emails, offering loyalty programs, and giving exclusive deals.

Loyalty program example
Loyalty program example (click to zoom)

Essentially, by understanding what your customers like, you can tailor your marketing strategies to keep them interested and loyal.

The Role Of Coupons In E-Commerce Customer Retention

Now that we understand the importance of customer retention, let’s dive into the role of coupons in achieving this goal.

Coupons have long been a popular marketing tool, and for good reason. They offer a win-win situation for both the customer and the e-commerce business. Customers enjoy discounts or special offers, while businesses can attract and retain new customers.

Coupons act as powerful incentives for customers to make repeat purchases.

Coupon example
Coupon example (click to zoom)

They create a sense of urgency and excitement, encouraging customers to take advantage of the limited-time offer. Moreover, coupons can strategically reward loyal customers, making them feel valued and appreciated.

This, in turn, strengthens the bond between the customer and the e-commerce brand, increasing the likelihood of repeat purchases.

Types Of Coupons That Can Be Used For Customer Retention

When it comes to utilizing coupons for e-commerce customer retention, there are various types to consider. Let’s explore some of the most effective coupon strategies:

1. Percentage-based discounts

Percentage-based discount example
Percentage-based discount example (click to zoom)

This type of coupon offers customers a percentage off their total purchase. For example, a 10% off coupon can incentivize customers to purchase and potentially spend more.

2. Free shipping coupons

Free shipping coupon example
Free shipping coupon example (click to zoom)

Shipping costs can often deter customers from completing their purchases. Offering free shipping coupons can help overcome this hurdle and encourage customers to follow through with their orders.

3. Buy one, get one free (BOGO) coupons

BOGO example (click to zoom)

BOGO coupons are a great way to incentivize customers to purchase multiple items. By offering a free item with the purchase of another, customers feel they are getting extra value for their money.

4. Exclusive discounts for loyal customers

Loyalty perk example
Loyalty perk example (click to zoom)

Finally, you can also consider showing appreciation for your loyal customers by offering exclusive discounts or rewards. This can be in the form of a personalized coupon code or a special offer available only to a select group of customers.

How To Effectively Use Coupons For E-Commerce Customer Retention (5 Tips)

While coupons can be a powerful tool for e-commerce customer retention, it’s important to use them effectively. Here are some tips to get the most out of your coupon strategy:

Tip #1: Set clear objectives.

Before implementing any coupon campaign, define your goals.

Are you looking to attract new customers, reward loyal ones, or increase average order value?

Clearly defining your objectives will help shape your coupon strategy.

Tip #2: Segment your audience.

Not all customers have the same needs and preferences. Segment your audience based on factors such as purchasing behavior, demographics, or loyalty status. This will allow you to tailor your coupon offers to specific customer segments and ensure maximum impact.

Tip #3: Use the Advanced Coupons plugin.

WooCommerce’s default coupon features are undeniably basic if you want to make the most of coupons.

If you’re interested in creating coupons like Buy One Get One (BOGO) offers or shipping discounts, Advanced Coupons is the go-to plugin.

#1-rated coupon plugin in WooCommerce

It’s the top choice for setting up advanced coupon strategies in WooCommerce. With over 150 comprehensive coupon features and more than 20,000 active installs, Advanced Coupons is sure to transform your coupon usage and help boost your business effectively!

Tip #4: Leverage a sense of urgency.

Coupons that have expiration dates or limited availability generate a sense of urgency, pushing customers to act quickly. Therefore, it’s crucial to use clear and persuasive messages to convey this urgency and motivate customers to buy.

To set this up, you can use Advanced Coupons’ scheduler feature:

Day/Time Scheduler
Day/Time Scheduler (click to zoom)

For more information on how to set day/time and date range schedules, click here.

Tip 5: Measure and analyze results.

Finally, to determine the effectiveness of your coupon strategy, track and analyze the results.

Monitor metrics such as:

This data will help you make informed decisions and optimize your future coupon campaigns.


Boosting e-commerce customer retention is crucial for long-term success in e-commerce. Coupons are a key tool for achieving this. In this article, we’ve covered everything you need to know to make the most of coupons for keeping customers coming back to your online store.

Then, we shared 4 types of coupons that can be used for retention:

  1. Percentage-based discounts
  2. Free shipping coupons
  3. Buy one, get one free (BOGO) coupons
  4. Exclusive discounts for loyal customers

Finally, we also shared 5 tips to maximize the powers of coupons:

  1. Set clear objectives.
  2. Segment your audience.
  3. Use the Advanced Coupons plugin.
  4. Leverage a sense of urgency.
  5. Measure and analyze results.

Do you have any questions about this article? Let us know in the comments!

author avatar
Belle Berber Writer, Content Manager

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