By Jim Clanin
If you have a storefront or e-commerce business, you’ve likely considered or have offered a digital coupon or discount to customers or potential customers with the anticipation that the coupon will increase sales, or increase traffic to your site or store. Offering a digital coupon is easy, but to maximize the benefit of the coupon for the user and the business, a business needs to plan their coupon campaign strategy around their consumers buying habits and consumer buying behaviors.
Businesses also have to set goals for each campaign, and know what a successful digital campaign looks like to them and their coupon users. There is a fine line between offering a deal to make customers happy and return to purchase more from you, and offering a deal to the coupon users who will only use the deal and will not become a loyal returning customer when a better deal comes along.
Why should a business provide a digital coupon?
- Attract new customers
- Get customers to return and make additional purchases
- Promote a new product or service
- Get customers to try a new product or service
- Increase customer loyalty and satisfaction and increase customer retention
- Receive customer feedback to use in marketing campaigns and evaluate buying behaviors
Coupons are a great way to track marketing ROI as they can be segmented with a different code or offer per advertising outlet, i.e. Adwords, Google, Bing, Facebook, Twitter, etc. The number of users using their smart phones to search for mobile coupons is increasing.
What types of digital coupons are there?
Consumers love using coupons to save money, and find them in several places, offering several types of discounts. They may like a Facebook page to receive a 25% discount on their first online purchase, or they may be subscribed to a company’s newsletter and regularly receive promotional codes. A consumer may know what they want and what brand, and based on the coupons provided on the brands website, their buying behavior can be influenced. Also, when asked for a promotional code at checkout, consumers often do a search online for a code to provide them with free shipping, or a percentage discount.
How do consumers find digital coupon deals?
Consumers are finding coupon deals in several areas:
- Coupon websites – There are several like retailmenot.com
- Retailers websites – Retailers regularly provide discounts or promos on their websites
- Search engines – Consumers are smart shoppers, and regularly search for discounts using search engines
- Social media – Loyal brand followers follow brands and businesses on Facebook and Twitter to stay up to date on discounts and coupons
- Brand or product/service websites – Retailers aren’t the only type of business that provides promotions on their sites. Service companies and manufacturers provide discounts and coupons too.
- Referrals from friends – If a coupon is offering a great deal, friends will share the deal with friends.
What types of coupons are the most effective?
While every business is different and has different results with different coupon campaigns, there are some basic things to consider when creating a coupon campaign. While they general tips and are not applicable to all businesses, products or services, they are applicable in several situations.
- Coupons that offer a specific dollar amount off a purchase – Percentage discount deals can be hard to calculate
- Discounts need to be substantial enough to make the time required to search for them worth it
- Free shipping is a good offer, but consumers are least interested in this option versus others
- Email coupon campaigns are more likely to be used than social media or other digital coupon campaigns
In general, consumers love using coupons and feel good when they feel they are receiving a deal or discount and can be more loyal to a business that offers deals. Coupons are a great addition to any promotional campaign, but it is important to consider the best value for your customers, and set goals that are measurable to know if the campaign has been successful or not. Coupons are also a great way to study your customers buying behavior and use that data and knowledge for future e-commerce marketing campaigns.
