What minimum spend amount you should set for your coupon discount value?
Does setting a minimum spend value for your coupon code bothers you?
Many might think that, as long as I’ve given a discount, there will be sales coming in. Well, not necessarily. You can set any discount value for your coupon code as long as it doesn’t hurt your margin. A discount based on the total value of a shopping cart is an effective upselling tactic to encourage customers to spend more, increasing your Average Order Value (AOV). Well, upselling is good, however, do take note, in the amid of the Covid19 pandemic, buyers are more conscious of their purchases.
A strategic way to incorporate this into your campaign is, try not to have the idea of “forcing” your buyers to buy at least 2 items in order to enjoy the discount. Instead, give options for your buyers. Set 2 different coupon values with different min. purchase value. Hence, what minimum spend amount you should set?
First, you need to know your average selling product price range. You need to know what is your average selling price range in your store, in order to set a valid minimum spend amount for your coupon value if you were a newly open web-store. Setting a min. purchase amount which is “reachable”. For example, your average selling price is RM45, set a min. purchase of RM50 for a 10% off which is RM5. By adding another RM5 or more, buyers will enjoy 10% off from their purchase. Or, set a min. purchase based on your store AOV.
Avoid setting a min. spend amount which makes your buyers feel “it’s impossible to reach”.