A guide to using coupons
To coupon or not to coupon, that is the question.
Coupons have been used by companies to boost sales since the launch of the first ever paper coupon by Coca Cola in 1887. At the beginning coupons were distributed in the street, displayed within newspapers and magazines, and placed inside post boxes.
With the development of the digital technologies, coupons changed and now are predominantly distributed through online channels. People spend time searching for deals from their favorite brands and if they find something good they can easily share it amongst friends and family.
Nowadays more and more consumers are regularly using voucher codes and most of them assume that a brand will eventually offer them money off at some point during their purchase.
Their shopping habits have changed over the years, with many consumers becoming more price-conscious and opting to purchase one brand over another if they are offered some sort of a discount coupon. If you ignore their demands, you'll be losing sales and missing out on customers who will soon flock to your competitors.
Bottom line, coupon campaigns can be beneficial to brands small and large, packaged with good customer service, good quality products and a strong brand identity, they can really launch your business and help you develop a regular customer base.
Here are some interesting points and ideas about coupons and vouchers:
Everybody is doing it
More and more companies are using coupons to build a loyal client base and this has so far proven effective. A staggering 91% of coupon redeemers have said they will purchase from a retailer again after they have been offered a coupon. A good percentage of shoppers revealed that they would not have not have made a purchase had they not been offered that coupon in the first place.
Some more facts for you to consider:
- 91% of consumers are using vouchers and discount coupons, 80% of them do it regularly.
- 45% of people are using or are open to mobile coupons. This number is increasing by 7% every year.
- 90% of customers agree that they will visit a shop again if they are offered a nice discount coupon.
- 56% of consumers say that the reason for their first purchase from a shop was a voucher.
- 90 minutes per week is spending the average customer searching for coupons online.
- 40% of consumers will share an email offer with their friend and 28% will share deals via social media platforms.
Coupons can go viral
Coupons are a recipe for success. They’re easy to promote and to share. There are many sites that you can advertise them on making the overall cost per acquisition lower than other channels. If the voucher code is attractive enough, or has a feel of exclusivity about it, your customers might share it through email or social networks which will drive sales further.
More bang for your buck
The use of coupon campaigns translates to reduced and more focused marketing spend, making it more cost-effective than traditional broadcast marketing methods. The offer of a coupon will entice consumers to like and share a social media page, opt in their contact details and build brand awareness rapidly.
Use coupons for many purposes
- Attract new customers. Acquiring new customers can be painfully expensive. Even though you’ll be reducing your margin, offering a voucher code can bring new customers at quite a reasonable cost.
- Encourage customers to return. Voucher codes are great for retention. Offer new customers a voucher code to redeem with their next order and you could see a positive growth in the number you convert into returning customers.
- Clear old stock. If you’ve got excess stock you need to clear, running a promotion via a voucher code is a great way to get rid of it profitably.
- Increase average order value. If you want to increase your average order value consider restricting the use of the voucher to purchase over a certain amount. Please be aware that there’s a fine line between increasing average order value and reducing sales.
- Appease disgruntled customers. Sometimes the wrong items get picked and packed, orders arrive late or damaged, or goods go wrong. Offering voucher codes to disgruntled customers might give you a better chance of retaining them.
Make a solid offer
Here are some tips effective couponing:
- Offer Discounts. $50 off, 60% off. Percentage discounts are only good when they are high and the value of the product or service is well known. Amount off discounts work better.
- Offer Bonuses. Buy one/get one free, or 2 free with each case ordered, etc.
- Offer Premiums. Whatever you have at hand. For a presentation, for a subscription, for a demonstration, for a new customer referral.
- Offer Free Information. Free booklets, free brochures, free estimates, free samples, free trial, free quote, etc.