Coupon marketing has been one of the essential digital marketing and advertising techniques. Marketers rely heavily on digital coupons to boost the sales of their products in a highly competitive market environment. And with brand loyalty going for a toss, it becomes essential for brands to make shoppers buy from them by incentivizing their purchase. According to various researches on the importance and significance of coupons, it has been found that more than 90 percent of consumers in the US used coupons in 2020. While 70 percent of shoppers loved receiving the digital coupon, it was also revealed that people who shop using coupons spend around 24 percent more. Another research suggests that digital coupon redemption grew by 27 percent in 2020, with significant growth predicted in the following years. With these impressive statistics, one must wonder what makes digital coupons tick in such challenging market dynamics. Let us look at some of the top benefits that make digital coupons a go-to strategy for brands of all sizes.
Massive audience reach
With carefully crafted digital coupons, brands in the e-commerce space can reach out to a massive potential audience base and the existing consumers with their products and services. Furthermore, it becomes easier for brands to entice the users to complete a purchase when they are provided with some incentives in the form of discounts, cashback, or a gift. Moreover, coupons are a great customer acquisition tool. According to leading market research reports, 60 percent of customers admit that they purchased the product from a new brand because the deals and offers attracted them. But brands have to be careful. A great deal can get the new customer to shop with them, but the quality of the goods and services will turn them into brand loyalists.
Sharing the coupons on popular social media platforms or engaging with affiliate partners is also a successful way of increasing the reach of your digital coupons. As the coupon reaches more relevant users, conversions increase, resulting in higher revenues.
Push new products and services
Brands often use digital coupons to tempt consumers to try out their new products and services to create a buzz in the market. While it is challenging to make shoppers purchase a completely new product without them knowing much about it, coupons provide that extra push to the user to go through with shopping. Cresting a sense of urgency or providing time-bound coupons are a great way to convert shoppers instantly. For example, a coupon that says the first 1000 shoppers will get a 25 percent extra discount will force the customer to act quickly and avail the offer.
Unlike other advertising and marketing techniques, designing and implementing a coupon marketing strategy comes at a minimal investment. Digital coupons can be disseminated through social media platforms, affiliate partners, influencers, and e-mail marketing without making a significant upfront investment. But brands should understand that if the plan is not executed correctly, the loss of revenue can be substantial. For example, if many coupons are delivered without evaluating the cost-effect and to the wrong audience, the whole purpose of acquiring new customers and improving sales in the long term will be defeated.
Brands can significantly get shoppers to complete their abandoned cart transactions by providing coupon codes that will bring more value to the consumers. Moreover, giving extra discounts is a great way to increase website traffic, conversions, and higher average order value. For a shopper who has already discovered your website, explored the products on offer, and invested their time building the shopping cart, even a small incentive in the form of additional discounts can push them to make a purchase. So why should brands incentivize shoppers with coupons to make them complete the transaction? Because the cost of acquiring a new customer is far greater than retaining the existing shopper.
Strengthen consumer data
Brands can successfully build on their user database with an efficient coupon marketing strategy by assessing their consumer’s shopping behavior and purchase history. These insights will help them improve their coupon marketing game, but the collected data will also help the brands personalize their offerings for their customers. And according to various researches, more than 80 percent of shoppers globally prefer and likely buy from brands that understand their needs and personalize deals and promotions to fulfill them.
While there is no doubt that coupon marketing has many benefits for brands looking to scale their businesses, it should be noted that overusing coupons can also create challenges for organizations in the long run. Therefore, brands should make a clear roadmap of the goals and objectives they want to achieve through their coupon-marketing strategy and stick to the plan.