Using Lazada Collectable Vouchers to meet business objectives

In the last post, we talked about using seller vouchers and the importance of collectable voucher to increase conversion. We need to take note that each voucher you create is a cost to your business on Lazada. So in this post, we will discussed how we can create each seller voucher to meet our business objectives.

In this table, you will find different voucher mechanics cater for your different business objectives.

For example, the average order value of your store is around $15. Your business goal is to increase store followers. You set up a follower collectable voucher with a storewide setup. Customers who follow your store will be entitled to a voucher. This voucher should attractive (ideally with a min spend of less than AOV) so that they can use it immediately. Think of this as buying Facebook likes or even Facebook ads.

*AOV = Average order value

Specific ObjectivesVoucher TypeVoucher MechanicWorks well with these tools
Increase store followersFollower
(Storewide)
– Attractive voucher with low barrier to redeem
– Min spend =< Average Order Value
– Feed
– Store Builder
– Chat
Boost Basket SizeNormal
(Storewide)
– Set Min spend > Average Order Value– Assortment
– Bundle
– Lorikeet
Reduce obsolete inventoryNormal
(SKU)
– Min spend >= Product Value
– Max redeem per buyer >= 1
– Lorikeet
– Bundle
– Campaign -> Flash Sale
– Seller Picks
Acquire new customersNormal
(SKU/Storewide)
– Min spend <= Average Order Value
– Max reddem per buyer >=1
– Voucher Tiering
– Clear shop USP
– Assortment
– Store Builder
– Seller Picks
– Campaign -> Flash Sale
New Product AwarenessNormal + Follower
(SKU)
– Select the new product bundle in SKU list– Bundle
– Campaign -> Flash Sale
– Store Builder
– Feed
Service RecoveryOffline
(SKU / Storewide)
– No min spend
– Max redeem per buyer = 1
– Chat
Driving online to offlineOffline
(SKU / Storewide)
– QR Code

Voucher Tiering

You can also leverage Voucher Tiering on Lazada. But there are a few pointers to take note:

  1. Try to have 1-3 business objectives per voucher
  2. For other business objectives, test with other voucher mechanic
  3. Do not suggest beyond 3 voucher tiers as it cause confusion

For example:

Example of lazada seller voucher tiering

Voucher Budgeting

Do not worry about creating 1000 or even 10000 vouchers. This is because Sellers do not bear any cost for collection of vouchers but only for redemption.

setting voucher limit to 10000 – total collections

For example:

If you set the 10000 total collectable vouchers at $1 each and if 10000 vouchers are collected. It does not mean that you have spent $10000. Only when it is redeemed, you have to be accountable for it. Currently the redemption rate based on our experience stands at 3-5%. Out of 10 customers who collected, only 3 customers use it.

You can also estimated your budget with this formula

Voucher Qty issued * Discount per voucher * Est. Collection Rate * Redemption Rate

So if you have a $2 fixed money value voucher, with 1000 vouchers issue. You estimated a collection rate of 80% plus a redemption rate of 3%.
It would be $2 * 1000 * 0.8 *0.3 = $480

5 key factors affecting collection and redemption rates:

Collection: Value discount, Fixed discount, Category, Visibility & Traffic
Redemption: Min spend, % Discount, Storewide, Assortment

Voucher Troubleshooting

Why is my voucher not showing up on my store?

  • Voucher is set at SKU-level. Only storewide vouchers will appear on store automatically. To show SKU-level vouchers, sellers need to set it at Store > Voucher module > Manual select.
  • Voucher has been fully collected. Go to Business Advisor > Promotion to check on Collection & Redemption rates on voucher level

Why is my voucher not showing up on voucher landing page?

  • Voucher discount criteria does not meet minimum criteria of at least $2 fixed discount or 5% percentage discount. If you are selling in electronic category, you need to have only 3% percentage discount.
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