What is Coupon Marketing?
When businesses need to increase their sales with a clever marketing technique, one of the oldest tricks is to offer a special deal on products to entice consumers. People who have never heard of a business will flock to its website to check out its product offerings because they found a good deal. Coupon marketing is a marketing strategy that takes advantage of consumer interest in saving money on purchases. Presenting your products to consumers for less than the regular cost could dramatically impact customer loyalty and satisfaction.
The essential elements required to start a coupon marketing campaign are virtually at your fingertips. There are two main ways to run an effective coupon marketing campaign. The campaign could be run as online promotion. Alternatively, the campaign could be run in the traditional way. The online promotion of a company through coupon marketing is usually accomplished by sending emails to recipients who signed up for a newsletter from the company. Meanwhile, a traditional campaign involves sending out mail to a targeted segment of consumers.
Benefits of Coupon Marketing?
Knowing the benefits of coupon marketing will help when presenting this information to board members. All marketing strategies need to reflect the marketing goals of the company for which they serve. Check to see if the benefits of coupon marketing help your company accomplish some of the objectives required to complete the goals set out in your company’s business plan.
- Benefit #1: Coupon Campaigns Are Tailored to Meet Goals – Companies use coupons to inform their audiences of product offerings, and this helps accomplish goals in the process. Professionals recommend sending coupons to customers that agree to take a survey or send a coupon to a customer for writing a review of a new product.
- Benefit #2 Increase Customer Loyalty – It’s hard to pinpoint what makes people come back to buy from the same brand. Experts recommend coupon strategies to help build a brand following. People respond emotionally to brands that reach out to thank loyal customers with promotions.
- Benefit #3: Beat Competitors – If your products are similar to those offered by your competitors, you could use a coupon marketing strategy to get ahead. Instead of offering all of your products at a discounted rate to everyone, you are giving your audience an incentive to buy your product over the competition.
4 Components of an Effective Coupon Ad
In order to maximize the performance of your coupon strategy, it’s important to grasp the most important components of an effective coupon campaign. When marketing with any strategy, it’s easy to get off track about your own expectations. Understanding these four components of an effective coupon ad will help keep your marketing department focused on obtaining desired results.
- Coupon Component #1: Clear Message – While your coupons may be designed with clever images and brand information, the overall appearance of the coupon shouldn’t distract from the message that your brand intends to deliver to each recipient. The text that is contained within each coupon should bring value to the consumer by summarizing your promotion in as few words as possible. You’ll need to include all the important information needed to accurately represent the promotion. However, the text on the coupon doesn’t need to go into details about product descriptions. In a few words, tell the consumer what value is being delivered through using the coupon.
- Coupon Component #2: Eloquence – Even though it’s vital to make the message the most important part of the coupon, it is possible to bring aesthetic design principles into this process. Using the correct combination of colors, fonts, and images, marketing professionals create coupons that dazzle the eyes of every consumer that finds their rewarding promotions. A coupon is a business tool, so it needs to look pleasant to have the biggest impact upon the reader. While it’s important to not judge a book by its cover, many people are drawn to beauty. More people want to read what coupons say if they’re designed with eloquence in mind.
- Coupon Component #3: Rewarding Behaviors – Effective coupons utilize the technique of creating a call-to-action statement to get consumers to act in a desired manner. If the company wants to increase the number of reviews for a particular product, it should release coupons that tell consumers that they will receive a reward for their review. The reward could be a discount on current product offerings, or it could be a free gift that goes along with the product being reviewed. Consumers will feel like their opinions are valuable, and the production of reviews for your products will help instill confidence in future shoppers. Rewarding behaviors increases loyalty, helping your company reach its goals.
- Coupon Component #4: Creating Urgency – The reason that most coupons have an expiration date printed on them is that the coupon should create a sense of urgency within the mind of its reader. Even if the recipient is interested in buying the product, they might still have reservations about making the purchase when the coupon arrives. The consumer might feel like doing more research, or they might have another common objection to delay them from making a purchase. The expiration date puts pressure on the consumer to take advantage of saving money on their purchase by acting on the deal in a timely manner. Utilizing this component increases the demand for your products.
5 Steps for Developing a Successful Coupon Marketing Strategy
Setting up a marketing campaign takes dedication and persistence to achieve desired results. Having a clear goal that your company intends to accomplish will help keep everyone focused. The steps that your company takes to launch a coupon strategy will depend upon the experience that your team has in this promotional field. To take more steps towards boosting your profits with coupon marketing, check out the article from Forbes linked at the bottom of this page. Take advice on how to set up a successful coupon strategy from professionals and tailor their advice to fit your company’s needs. These five steps should be revisited for each coupon that’s launched by your company.
- Step 1: Research – Before you start setting up segmented mailing lists, your first step should be to conduct a thorough evaluation of the current climate for this marketing strategy within your industry. You should research what your competitors are doing to create enticing coupons for their customers by visiting their websites and looking for their coupons. Research the ideal expiration date for coupons sent out to consumers within your industry. Also, you should conduct research to determine which value to set for your coupons. This type of preparation will help when you’re setting up and maintaining your campaigns; it’s something that you should revisit to make sure that your coupons are performing well.
- Step 2: Create Customer Segmentation – When you create your coupon marketing campaign, you’ll need to decide which segment of the consumer population should be targeted with this promotion. Sending one coupon to everyone on your mailing list might confuse some of your customers, so it’s important to take time to divide up your mailing list into categories that reflect each recipient’s demographic information. These types of issues should be addressed when uploading your coupon to a platform as well. Taking time to give parameters to your marketing campaign will help ensure that your coupons reach the right people that will make use of them.
- Step 3: Create Coupons for Every Occasion – When you’ve completed your research and divided up your list of recipients, it’s time to decide upon the occasions for delivering coupons. People expect to receive coupons during specific times of the year, and it’s common to make these types of promotions effective for coupons that have been released onto platforms as well. For instance, creating a coupon for a specific holiday is a step that will help your company become relevant in many consumers’ minds. In addition to designing coupons for holidays, you could offer coupons that reflect important events within your company’s history.
- Step 4: Track Coupon Performance – Tracking the performance of a coupon campaign will help improve results for future promotions. Traditionally, coupons are labeled with information for tracking purposes. Tracking coupons used for online shopping is much easier because of the use of promotional codes. Using promo codes allows the business to monitor the results of coupon campaigns. However, promo codes may be shared outside of the original audience or delivery platform. For this reason, it is essential to monitor the data that’s coming from coupon sites to better optimize future promotional offerings.
- Step 5: Monitor Coupon Sites – When you are promoting your products through digital coupons, you’ll need to find a way to reach new customers that have never heard about your company before. Putting your coupons on the biggest platforms that specialize in coupon marketing will help make your company’s products available to an entire swarm of savvy consumers. However, you need to make sure that these platforms have the correct information about your promotional offering. It’s important to update information concerning the value, expiration date, and terms of using each coupon. You might bring people to your site by letting those old coupons remain on platforms, but many shoppers will be upset that the information is inaccurate.
Where to Distribute Your Coupons
In order to distribute your coupons to the online community, you’ll need to find a reliable platform. You could try setting up digital distribution methods on your own, but there is a learning curve that’s required to tend to segmented lists of recipients. Try using MailChimp for providing email marketing materials to your current customers. The same people who are on your newsletter mailing list deserve to hear about your next brilliant promotion.
If your goal is to find new leads, you’ll need to get your coupons out to people that have never heard of your brand. Platforms like RetailMeNot offer a unique way for brands to introduce their coupons to new audiences. Consumers will find your coupons by searching for products through a reliable search portal.
Coupon marketing in the digital world might be too complex for you to grasp. Luckily, there are other options when this situation arises. You could bring in a third-party company to help set up a digital coupon strategy, or you could try the traditional approach of sending coupons out through the mail to previous customers and targeted consumers.
Stats About Coupon Marketing
- In an article by Neil Patel, the marketing mogul mentions that 72% of consumers abandon their purchases to look for promotional codes on the internet. Sending promotional codes through email is a super way to market products. However, making the codes available through popular coupon platforms will help avoid tremendous losses in profit from savvy shoppers who look for promo codes.
- A survey presented by Voucherfy indicates that 50% of all consumers like to open emails that contain coupons and other types of special offers. Coupons are a gift to half of the people that open their emails because they offer a way to save money on their purchases.