Published August, 21 2020
Coupon marketing is probably one of the best marketing techniques for both offline and online marketing channels. Customers want coupons, vouchers, discounts - anything where they can save money. While coupons have been a route to attract customers for years, they will play a vital role in the future of digital marketing to maximize lead conversion.
With the convenience of online shopping, customers have become more price-sensitive than ever. While traditional approaches to building brand loyalty work well, digital coupon marketing is increasingly becoming a better way to retain customers. That’s the reason all e-commerce stores, big or small, offer discount coupons that customers can use for future purchases.
If you have a customer base that is largely online, you need to constantly rethink your digital marketing strategy. Studies show that coupons are gaining popularity as a way to drive sales, build brand image, and ultimately develop customer loyalty.
Every B2C business that goes digital needs to get involved in digital coupon marketing. Here are a few reasons why your business needs it -
◘ Stay ahead of the competition
Your competitors are probably already offering coupons and discounts to customers for driving them to their side. If you want to stay ahead of your competition, coupon marketing is your best bet.
◘ Get more conversion
While daily specials and deals are a great way to drive sales, coupons help you get more conversions. Online customers quickly make purchases if there is a deep discount on products. As they compare it with the price they can get offline, the discount seems like a great offer.
◘ Multiply your customers
Whether you believe it or not, when you offer discounts, your customers will tell their friends and family about it. They will refer your products to them. If you are consistent, you can multiply your customer base in no time.
◘ Justify marketing ROI
You are likely to justify your ROI on digital marketing activities. Coupons provide you with more sales and lead to driving conversions which wouldn’t be possible with other strategies. The future of digital marketing involves coupons as a great indicator of ROI justification.
But there are always exceptions. If you provide excessive coupons, then it could lead to brand damage as people will leave you once you stop offering them discounts. Also, if you are not careful, coupons will lead to developing a one-time buyer customer base that is harmful to your business. The acquisition costs will also multiply if your strategy is not consistent.
Fortunately, when done right, coupon marketing can deliver great value for any customer base and even help you to build excellent brand loyalty. However, when going for digital coupon marketing, you need to keep a few things in mind to get the most out of the strategy.
1. Develop a strategy
It is essential that you lay out the strategy for marketing online through coupons. Don’t just create a coupon and jump into promoting it. You need to outline the discount, duration, type, discounted products, terms of use and much more.
Coupons are for future use, so you also need to specify how you will handle the transaction when the customer wants to redeem the offer. These parameters are important for the overall success of your campaign.
2. Offer quality products
Most customers assume that if you are providing a heavy discount, you must be offering cheap quality products. Ensure that the products you offer match the quality that you are promoting.
When your customers get high-quality products at a discount, they would be willing to purchase from you even when there is no discount. It is the beginning of building customer loyalty as people now trust your product and rely less on the coupons you offer.
3. Get feedback
Digital coupon marketing won’t result in success if you don’t ask your customers how their experience with the deal was. It is essential to understand if they were satisfied with the coupon and what changes you could have made to serve them better.
When you do this, your customers know that you are not just another cheap-sell business but someone who listens to their customers. It is a good strategy to listen to what your customers are asking for and then give them through future-use discount coupons.
4. Provide value
One of the best indicators of a successful coupon is the value that it can provide. Your coupon shouldn’t make you look like a cheapskate. It must provide actual value to your customers when they make the next purchase. The past, present, and future of digital marketing is the value that you provide to your customers.
If your coupon gives something that has no value to your customer, like 50 cents off on their next purchase of $100, then you will lose them. Offer them discounts if they make repeat purchases. It is an excellent way to keep them with you for years.
5. Reward your ambassadors
When you start digital coupon marketing, you also need to take care of your ambassadors. Yes - your most loyal customers are your ambassadors.
And if they use a coupon, get satisfied, and send more customers to you, then you should reward them. It is a way of showing appreciation for referring people to your business. You can provide them with exclusive coupons and discounts that you offer to select loyal customers.
6. Track coupon marketing campaign
It is a good practice to track the performance of the digital coupon marketing campaign that you are running. It is crucial because it will help you identify what works for your business and what doesn’t.
Not all coupons are created equal - you have to remember that. Tracking ensures that you don’t make the same mistake again and provide a deal that is better than the previous one.
Coupon marketing is not a one-stop strategy for building brand loyalty. You have to be patient with it and experiment continuously to find the best one that works for your customers.
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