Coupon marketing: more than discounts

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Coupon resources are sites of profitable offers that give the right to purchase a product or service at a discount in a limited period of time.

They first appeared in the United States. The system began to spread around the world capturing the leading position of the Americans. The simple principle of operation quickly came to taste to consumers. The coupon site gives you an opportunity to get a discount coupon for a wide range of goods and services. Such an abundance of proposals could not but rejoice, because it helps to save. There were active business representatives who treated the coupons as a new opportunity to attract customers and increase sales.

In our mobile era, coupons (or discount promo codes) remain an important element of any brand’s marketing policy.

In the context of e-commerce and online shopping, a promotional code is a code that provides a discount on the purchase in the online store, when copied to a special field on the payment page.  For example, it may be free shipping, a gift, a discount in percentage like Ticwatch 10% promo code, etc. Something similar can be found, for example, in the App Store (where the “discount” on the promotional code for the app reaches 100%). In general, promotional codes are not only an increase in sales, but a much wider range of tasks-from increasing loyalty to reactivating existing customers and organizing brand sales.

However, there is no coherent strategy for coupons. Like any element of marketing policy, promotional codes must be consistent with the overall pricing policy and corporate objectives. The distribution of promotional codes often fails to produce results if they are launched aimlessly and in a hurry.

What steps should be taken to create a perfect promotional code?

Firstly, it is traditionally necessary to determine the goal. There can be many of them, but it is important to select one, such as:

  • increase in sales;
  • attracting new customers;
  • retention and / or reactivation of existing customers;
  • increase of customer value for business;
  • sale of warehouse, seasonal and discount goods;
  • the incentive for impulse buying;
  • seasonal or holiday sales.

Secondly, it is necessary to determine the characteristics of the promotional code – its validity period, the discount amount and the minimum order amount. It is important to approach this issue as carefully as possible, since a small discount will not attract buyers, and a large one will not allow you to earn on the shares. In perfect, the promo code should have a minimum amount just above the average purchase amount.

Thirdly, it is important to implement the use of coupons correctly when developing a strategy: to make unique codes, to find unique distribution channels, to set up analytics systems correctly.

The latter, as in any marketing strategy, is one of the most important parts. It is extremely important to analyze sales and efficiency of promotional codes. The advertiser can divide buyers by segments and select the most important target group. Due to the help of the analysis of promotional codes, various patterns can be detected and accurate data obtained. For example:

  • the difference between the number of sales from one promo code and the share in total sales;
  • the difference between the average purchase amount in the store and the minimum order amount to use the coupon;
  • the dependence of the conversion of the coupon from its terms.

Continuous analysis of the effectiveness of promotional codes helps advertisers and traffic providers (publishers) to determine the potential growth and effectiveness of coupon marketing.

How will coupon marketing develop further?

Undoubtedly, coupon marketing is an important and effective tool. It is important to apply it correctly and with understanding in practice. Due to the advent of mobile apps and mobile wallets, coupons will increasingly move to our mobile devices, where they are likely to get a second wind.

Smartphones can give promo codes a lot of important functions and become a reliable assistant to promote brands and attract purchases. Geolocation, time, purchase history-all this will make coupons more meaningful and interesting for users. Of course, companies will have new tasks, but we are sure that they will find their solution.

How should you use discounts effectively?

Here are some points, taking into account which you can ensure the effective use of this marketing tool in the development strategy of your online store.

Reward for loyalty

It is quite reasonable to offer a discount to those buyers, who have already made an order with you before, for example, a discount for a second purchase. Giving discounts to regular customers is the best way to show your appreciation. Maintaining good relationships with existing customers provides a much better effect for the business than the constant work on attracting new ones.

Relations with opinion leaders

This can be, for example, users of social networks whose accounts have a large number of subscribers, providing their owners with good social capital. Offer these people your products for free or at a good discount in exchange for a review. This is true in cooperation with the owners of popular thematic sites in your subject. Believe- the loss of profit will be later paid off at times.

Abandoned shopping cart

In this case, sending a discount coupon https://promocodius.com/us/shops/cratejoy to customers, who have interrupted the ordering process, can encourage them to return and complete the purchase with a positive result.

Attract new customers

This tactic is similar in its mechanics to various referral systems, for example, it uses a number of well-known online stores. The bottom line is that the user can attract their friends and acquaintances on a special link, which will help them to receive a small discount, for example 5%. He, in turn, gets a little more price reduction, for example 10%, or special bonus points. As a result, the total loss of profit is covered by the expansion of the consumer audience.

Source: https://www.bmmagazine.co.uk/business/coupon-marketing-more-than-discounts/

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