Many popular online stores offer a coupon system of one kind or another, and they frequently distribute them to customers. This is no coincidence either: the effects of coupon marketing is a widely known method, and if you’re not already using it, you’re missing out on a great opportunity.
Coupons are essentially discounts – and everyone likes to feel like they’ve found a good deal. However, there are many fun ways to use coupons beyond just discounts, and each of them can help you increase your sales.
The basic strategy of coupon marketing is simple: you hand out coupons or codes that users can use in exchange for discounts and free items. The benefits of this strategy are many, including:
- It helps you increase your sales by making enticing offers.
- Get more returning customers.
- Increase traffic to your store and generate interest through social media.
- Eliminate unwanted product inventory.
Ultimately, everyone loves a good deal, which is why coupon marketing works so well. However, using simple coupons is far too simplistic an approach to e-commerce, so let’s explore other options.
But why exactly do they work so well? It’s an interesting question. Coupon marketing strategies have a significant impact on how we perceive the company and the coupon issuing site and contribute to its successful operation. Let’s take a look at how it works to try to determine where the success comes from.
Coupons can really make a difference to someone looking for the best possible deals on a variety of everyday items. The idea of coupons is that they can be used almost anywhere.
So why is coupon merchandising becoming so popular? There are many reasons that can explain its success. In fact, it has a lot to do with the psychology of a good marketing strategy. What you are trying to do is attract people who are looking for the right deal. So you use the offers that are the most impressive and that are immediately appealing. You get their attention and you make sure you keep people interested.
Email coupon marketing is often another popular choice to consider. Emailing is an easy way to communicate with a large number of people at once and is used to reach those who may not be on social media or pay attention to ads. Coupon marketing with emailing can be used to actively generate leads and is often conducted alongside other marketing strategies to ensure success.
Overall, these are just a few of the different reasons why the coupon strategy works. Coupon sites are great places for people to find resources that are useful to them, and this is obvious to everyone. Why pay full price for something, when there is a coupon that means you only have to pay half? It’s a no-brainer.
Coupon sites are increasingly being used to try and get around the exorbitant prices that many companies charge for their products. This is one of the main keys to their success, and the reason they will continue to grow in popularity. But how do you create a good strategy?
Build your coupon marketing strategy
Start with mobile coupons
Consumers are constantly using their phones to compare prices and search for deals; capitalize on this trend by targeting them with mobile coupons. 67% are more likely to choose a retailer that offers mobile coupons over those that do not. Build customer loyalty with the following tips:
- Use Geofencing to your advantage: 65% of consumers are more likely to shop at retailers that send mobile coupons triggered by proximity. Drive traffic to your stores by targeting customers with personalized messages (via your app or SMS). Your messages should be relevant to their shopping behavior. To increase mobile coupon usage rates, set the distance between your store and coupon recipients to about 10 meters.
- Include coupons in your mobile app: Introduce coupons in your mobile app to increase sales volume and increase engagement in the app. Share exclusive coupons to your app users and make sure your app has a built-in scanning tool so consumers can scan products to discover in-store deals.
- Deliver an omnichannel experience: Reach today’s omnichannel shoppers by sending them real-time offers based on their purchase history and activity on your website, email promotions, or mobile app. Give them a seamless experience by making your mobile coupons usable online or in-store. And don’t forget about print: use QR codes in magazines so that people looking for a deal can shop online with coupons through your app.
Optimize coupons for profitability
Creating coupons without learning the proper methods can be counterproductive and decrease your returns. Be selective when creating and distributing coupons. Below are a few examples of when your business will benefit from a precise and personalized approach:
- Attract new customers: Offer coupons to new customers to encourage them to make their first purchase. Make coupons visible to potential customers by placing them in the header, footer, or lightbox of your website. To encourage repeat purchases, consider offering visitors a 5-10% discount, gift card, or other benefits for their next purchase.
- Engage customers: Use variations of “we missed you” coupons to bring back customers who stopped buying from you because of pricing issues. Before using this strategy, determine which customers have a good probability of re-engagement and longevity. Also, limit this offer to one coupon per customer and segment offers based on customer lifetime value.
- Reward loyal customers: Recognize loyal customers with a rewards program that reduces future purchases. Offer exclusive deals based on your customers’ buying habits and personal interests.
Promote your coupons
No matter how good your coupon is, if consumers can’t find it, they can’t redeem it. With 46% of consumers looking in multiple places to find coupons, you need to make sure your offers are easily accessible. A few strategies for getting your coupons in front of shoppers:
- Allocate resources to paid search: Consumers exposed to coupon ads are twice as likely to convert on a retailer’s site. To entice consumers to click on your ads, dangle attractive discounts and highlight potential savings. So it’s wise to examine conversion data to see which keywords are most likely to generate sales and use that data to adjust ad copy, refine bidding policies and optimize your keywords.
- Partner with coupon sites: Work with outlets that offer value beyond code display. Plus, you can build in tracking to see how these websites contribute to a sale. Create affiliate-only coupons and clearly define the discount terms.
- Free Standing Insert (FSI): Freestanding inserts – unattached promotions found in newspapers or magazines – remain the primary channel for reaching consumers. Use this method to announce a sale or introduce a product. Place a single offer on a page, including a single CTA.
Use one-time use coupons
Instead of standard discounts that customers can reuse multiple times, opt for single-use coupons that allow you to send targeted offers. Two things to keep in mind here:
- Offer high-value coupons: Consumers prefer higher-value single-use coupons to lower-value varieties that they can use multiple times. If you highlight the discount percentage, set a minimum order value. Use analytics to better understand your customers’ price elasticity, which will help you determine your ideal coupon value and avoid over-discounting.
- Take steps to prevent overuse: Block the use of extra copies of coupons by including random codes and ensuring that coupons expire on all channels and devices once they have been used. Only offer discount links to customers who have gone through the predetermined flow.
Measure and track your performance
Tracking and measuring the results of your coupon campaign is the only way to know if your strategy is working. Here’s how to conduct your analysis the right way:
- Use a single platform: Track and manage your campaigns with a single platform that offers real-time reporting and tracks customer engagement through to redemption. Conduct advanced analytics to track purchases triggered by coupon use to see how consumers respond to your messages.
- Use unique codes: Place different tracking codes on each coupon to identify individual buying patterns and see which types of discounts or benefits generate the best returns. Make sure your coupon codes are simple and work in both upper and lower case.
- Track relevant metrics: Measure and track the performance of your coupon campaign with metrics such as coupon conversions, ROI, number of coupon downloads, and coupon redemptions to measure the effectiveness of your offer. The ideal KPIs are measurable, trackable, and linked to your primary objective.
The different types of coupons
There are different types of promotional codes depending on your activity, the season, and the objective. Coupons can be presented in different forms: a percentage or a number of euros of reduction, a gift of purchase, an article at half price, etc…
Here are some examples of online discount codes:
The promotional code for the vacations
Holidays such as Valentine’s Day, Christmas, Mother’s Day, or even a sporting event can allow you to offer a tempting coupon.
The coupon for a first order
A good way to win over a visitor and make a buy.
The coupon code from a certain amount
You can determine the amount based on an analysis of the average basket via Google Analytics for example.
The coupon for a special season
Always be up to date with a promo code for the season, for example, SUMMER20.
It is possible to imagine a large number of occasions that justify the creation of a discount coupon.
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Coupon marketing can be very beneficial to your business if used correctly. Integrate online and offline data to understand your customers at a deeper level and reach them with the right offer. Consider collaborating with other brands to reach a whole new audience and create a post-purchase program to continue to engage consumers.
Finally, consider a program that allows shoppers to share their purchase reviews with their friends, and offer post-purchase rewards such as discounts, points, or extra coupons to retain them and make the most of your offer programs.
To implement a strategy based on promotional coupons, geofencing, or an omnichannel experience, our growth hacking agency is at your disposal. Do not hesitate to contact us!
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