You might be thinking… what is coupon stacking, exactly?
Businesses are always on the lookout for creative ways to draw in customers and keep them coming back. One strategy that has really picked up steam is coupon stacking. Basically, this involves customers using multiple coupons and deals together, helping them save big.
If you’re running a retail business, getting to grips with coupon stacking can really transform your approach to customer engagement and loyalty.
But like any strategy, it has its upsides and its challenges.
In this article, we’re going to do more than answer, “What is coupon stacking?” We’re going to dive deep into the strategy, examining its finer details and equipping you with the insights you need to use it effectively.
So, are you ready to learn more? Let’s dive in!
What Is Coupon Stacking And How Does It Work?
Coupon stacking, or “deal stacking” as it’s sometimes called, is all about using a mix of coupons, promo codes, and discounts to save as much as possible on a single purchase.
You might use a combination of manufacturer coupons, store coupons, loyalty program discounts, and promotional codes. Here’s how it usually works:
- Finding the Best Deals: When shoppers hunt for the best savings, they explore all kinds of places to grab the right coupons and discount deals. For example, they could look at retailer websites, mobile apps, social media, and even third-party coupon sites to find exceptional promotions.
- Stacking Up Savings: After gathering all the applicable promotions, savvy shoppers play it smart by stacking these discounts together.
- Maximizing Savings: By cleverly combining different discounts, shoppers often cut down their total spending significantly, sometimes saving more than what each coupon alone would offer.
It’s important to note that the rules about stacking coupons can differ from one retailer to another. Some might limit how many coupons you can use together, or what kinds you can combine.
As a retailer, it’s key to get a good grip on these policies and make them clear to your customers. This way, everyone knows what to expect and you can avoid any confusion, ensuring a smooth experience.
Benefits Of Coupon Stacking For Retailers
You know, at first glance, coupon stacking might look like just a way for shoppers to save a few extra bucks, right? But there’s a twist—it can actually be a big win for the store owners too.
Let’s dive into some of the major perks for retailers:
1. Increased customer loyalty
When you think about what is coupon stacking, keep in mind that it isn’t just about the deals.
It really plays a big part in building a relationship with your customers. When you allow them to stack coupons, it’s like you’re saying, “Hey, we see you trying to save, and we’re here to help!”
This approach shows them that you value giving them the best bang for their buck. Naturally, this kind of care creates a strong sense of loyalty. Customers remember that kind of support, and it keeps them coming back because they know they can trust you to deliver great value.
What better way to encourage repeat business, right?
2. Boosted sales and revenue
When customers can stack coupons, they often end up buying more than they originally planned. Think about it—adding another item to your cart doesn’t seem so bad if it means saving even more, right?
This approach not only boosts the sales volume but also ramps up the overall revenue.
It’s like, the more they save, the more they spend. Thus, it’s a clever strategy to get shoppers to increase their purchase size without a second thought.
3. Inventory clearance
Coupon stacking is also a smart move for stores, especially when they’ve got too much stock sitting around. Say a store has a bunch of items that aren’t flying off the shelves as fast as hoped.
Here’s where it gets clever: they can roll out stackable coupons:
This strategy isn’t just throwing out random discounts. It’s targeted. You can lure customers into buying these less popular items by offering them a tempting deal—maybe a hat for half off if they buy a jacket at full price. It’s like saying, “Hey, since you’re already here, why not grab this too?”
Before you know it, those shelves start clearing up!
4. Competitive advantage
What is coupon stacking? It’s a strategy that can help you not only survive but also outperform the competition. After all, in a market that’s packed with choices, rolling out the red carpet for coupon stacking can really make your store stand out.
Imagine you’re a customer and you’re comparing two shops; one lets you stack up discounts, and the other doesn’t. Chances are, you’ll go where your dollar stretches further, right?
For this reason, this strategy brands your store as more customer-friendly and tuned into saving people money. Moreover, it might just win over some new fans who are looking for the best deal out there.
5. Data-driven marketing
What happens when you keep an eye on how your coupons are used, especially which ones get stacked? Basically, you learn a ton about what your customers like and how they shop.
This kind of info is gold for shaping your future marketing moves. You can customize your promotions and deals to fit just right with what your customers are looking for.
It’s like having a roadmap to their preferences!
Risks And Challenges Of Coupon Stacking
There’s more to this strategy than answering the question, “What is coupon stacking?” You should also know its risks and challenges.
Coupon stacking sounds pretty great on the surface. After all, it offers some juicy benefits. Nevertheless, it’s wise to keep our eyes open to some of the tricky bits that come with it.
So, let’s break down some of the potential risks and challenges that stores might face with this practice:
1. Profit margin erosion
When customers stack coupons, they’re grabbing some pretty big discounts. But there’s the catch for businesses—if it’s not kept in check, this can really start to eat into the profit margins.
If you’re not careful, you might find that these discounts are actually costing you more than they’re worth, potentially shaking up your business’s bottom line in the long haul.
In other words, you need to keep a handle on how these coupons are used to prevent profit loss.
2. Inventory management complexities
It sounds straightforward, but when customers start stacking coupons, things can get a bit unpredictable. You might see these sudden bursts of demand when you run multiple promotions at once, and that can really shake up your supply chain and how you handle your stock.
One week, everything’s normal, and then boom—a big promotion hits, and everyone rushes in.
True, keeping up with these spikes in sales is about having enough on the shelves. However, it’s also about smart planning and maybe even a bit of agility to avoid those out-of-stock headaches or, on the flip side, ending up with too much of something that just won’t sell.
3. Brand perception concerns
When you let customers stack coupons, if it’s not managed well, it might come off as a bit of a gimmick, right? Or even worse, some might see it as a sign that your business is in a pinch and trying to lure in more sales any way it can.
This can really play into how people view the exclusivity and value of your brand.
It’s all about striking that balance to keep the allure of a good deal without making it seem like your brand is just giving things away left and right.
4. Fraud and abuse risks
What is coupon stacking if you neglect to protect your business from deceptive practices?
While most shoppers use coupons the right way, there are a few who might try to play the system. They could use fake coupons, expired ones, or even find sneaky ways to bend the rules to their advantage.
Now, to keep things fair and square, it’s super important for stores to have strong fraud detection and prevention strategies in place. For one thing, this protects the business. For another, it ensures that coupon deals remain sweet for everyone who plays by the rules.
5. Technical challenges
Let’s talk about integrating coupon stacking into your e-commerce setup. It can seem like a daunting task, can’t it? Not only do you have to deal with the nitty-gritty of the technical side, but it also requires a decent chunk of resources and some real expertise to pull off without a hitch.
You need to make sure everything works seamlessly with the systems you already have in place.
Plus, it’s not just about getting it up and running—there’s ongoing maintenance to think about, making sure everything stays compatible and runs smoothly as your platform evolves. It’s quite the project, but when done right, the payoff can be pretty substantial for customer satisfaction and sales.
Creative Coupon Stacking Ideas For Your Store
As we’ve seen, coupon stacking has a fair share of advantages and risks for store owners. The key to success is being strategic in your implementation. When done right, coupon stacking can encourage higher spending and foster customer loyalty!
In this section, we’ll explore smart ways you can implement this strategy in your store.
1. Offer free shipping with percentage discounts
One of the biggest causes of cart abandonment is unexpected costs at checkout–that includes shipping fees. Eliminating this barrier while also offering a discount can drastically increase conversions. To maintain profitability, store owners can set cart conditions and restrictions. For instance, you may want to offer free shipping only on local orders or require a minimum spend.
Another option you can explore is offering a shipping discount instead of waiving the shipping cost completely. Plugins like Advanced Coupons allow you to create shipping discount coupons and restrict these offers to specific users, order values, or products.
Want to learn more about offering shipping discounts on WooCommerce? Check out our complete guide here. 👉
2. Allow customers to use loyalty rewards with discounts
Loyalty programs are a powerful tool to keep your most valued customers coming back. Their impact can be amplified if members can stack their rewards with other discounts. As a store owner, you can allow customers to:
- Redeem a fixed or percentage discount coupons along with store credits.
- Earn loyalty points even on discounted purchases.
- Allow customers to use free shipping coupons and store credits in one order.
There are several ways you can implement this strategy to foster customer loyalty. Setting reasonable restrictions can help avoid excessive discounting. With Advanced Coupons, you can set percentage limits for store credit redemption and control coupon stacking conditions to protect your margins.
3. Combine gift cards with other perks
Gift cards are one of the most popular gifting options for shoppers. You can enhance their appeal further by allowing customers to apply their gift card balance with coupons, loyalty rewards, or other perks.
💡 Looking for an easy way to offer gift cards in WooCommerce? Check out WooCommerce Gift Cards! This plugin allows store owners to easily sell digital gift cards in WooCommerce.
4. Implement tiered discounts
Tiered discounts offer bigger savings as the cart total increases. This is perfect if you’re catering to wholesale buyers. By giving bigger discounts as shoppers buy more, you can boost your average order values while rewarding bulk buyers. You can easily implement this strategy using plugins like Advanced Coupons. With this plugin, you can offer discounts based on conditions like cart subtotal and cart quantities.
If you’re planning to expand your reach and cater to bulk buyers, tools like Wholesale Suite provide advanced features. This suite of powerful plugins allows you to set wholesale prices for products and implement site-wide tiered pricing.
Coupon Stacking Best Practices
We hope that our list of creative coupon stacking ideas inspired you! As we’ve reviewed, there are a ton of ways you can use this strategy to grow your store. To ensure they work in your favor, keep in mind these simple best practices:
- Leverage cart conditions and restrictions: Shoppers appreciate savings, but offering too much can be unsustainable for your business. You can maintain control by setting cart conditions and restrictions on coupons. For instance, you can allow coupon stacking only for specific products or categories.
- Reward your most loyal customers: Consider granting “coupon stacking benefits” only to your most loyal shoppers, or rewards program members. This can also make your loyalty program more enticing.
- Run limited-time stacking promotions: Instead of allowing coupon stacking all year round, why not reserve it during special events? For example, you may want to grant both free shipping and percentage discounts on big shopping events like Black Friday. This can create anticipation and drive urgency among customers.
- Track and optimize: As with any marketing campaign, you’ll want to measure results to know if your coupon strategy is effective. Plugins like Advanced Coupons provide store owners with a comprehensive dashboard that summarizes coupon usage, orders discounted, and other important insights.
How To Allow Coupon Stacking In Your WooCommerce Store
What is coupon stacking if you can’t use it effectively? Thankfully, with the right platform, you can enjoy features that not only allow the strategy but also optimize it.
And guess what? Advanced Coupons has just rolled out a couple of exciting new features that open up this possibility! So, want to get into the details and see how you can let your customers stack up savings?
Check out our guides here to learn all about implementing coupon stacking in your e-commerce store:
- New Feature! How To Enable Coupons To Be Used With Any Other Coupon In WooCommerce
- New Feature! How To Allow Stack Coupons To Be Applied In WooCommerce
If you haven’t heard, Advanced Coupons is the best coupon plugin in WooCommerce. Trusted by 20K+ store owners, this plugin lets you run different kinds of coupon deals like:
- BOGO or “Buy One, Get One”
- Free shipping deals
- Cashback or store credits
- Cart conditions
- Add products
- URL coupons
- Auto-applied coupons
- And many, many more.
Frequently Asked Questions
What does it mean to stack coupons?
Coupon stacking allows shoppers to combine multiple coupons in a single purchase. This allows them to enjoy different types of discounts and promotions. Common examples include combining:
- Store coupon + a manufacturer coupon
- Percentage discount + a free shipping coupon
- Loyalty reward + a fixed discount coupon
When done strategically, coupon stacking can help increase average order values and improve customer retention.
What is an example of offer stacking?
A common example of offer stacking is applying a free shipping coupon along with a percentage or fixed-amount discount. This offer combination reduces both product and shipping costs, making the purchase more enticing. Another example is allowing shoppers to redeem loyalty rewards along with other coupons.
Is coupon stacking legal?
Coupon stacking policies vary by retailer. Some retailers encourage coupon stacking as an incentive, while others restrict the number of coupons that can be applied per transaction. As a shopper, it’s best to double-check a retailer’s policy before attempting to stack discounts.
For store owners, plugins like Advanced Coupons offer powerful features to control coupon stacking settings and set cart conditions and limits to ensure this strategy remains profitable.
Conclusion
What is coupon stacking? It’s a great strategy that can really ramp up customer loyalty, give your sales a nice boost, and even give you a leg up on the competition. But here’s the catch: it’s essential to have a solid plan in place and to be fully aware of the potential pitfalls and challenges.
In this article, we walked you through everything you need to know to maximize this strategy, including:
- What is coupon stacking and how it works
- The key benefits of coupon stacking
- Risks of coupon stacking
- Creative coupon stacking ideas
- Best practices when implementing coupon stacking
- How to allow coupon stacking in your WooCommerce store
Plugins like Advanced Coupons make it easy for store owners to implement this tactic strategically in WooCommerce. With this tool, you can set advanced cart conditions and restrictions to make sure coupons are applied exactly the way you want them to.
Do you have any questions about what is coupon stacking? Let us know in the comments!
