Coupon marketing has become an integral part of any online business. Coupons were originally invented as a tool for marketers and buyers to attract customers to increase sales. In today’s online market, coupons have gone through a total revamp. The modern day coupon are mostly eco-friendly, easy to use and promising! Statistics reveal that 88% of shoppers use at least one coupon in the span of three months. Coupon marketing comes in various forms, ways and interesting ways of execution. Read this blog to get a detailed guide on everything you need to know about coupon marketing for business.
Today, many leading online and offline companies across the globe make use of coupon marketing and discounts. Since we know, coupon marketing is not a modern-day phenomenon. It has been around since the launch of the first paper coupon by Coca-Cola in 1887.
India too has a classic coupon marketing case study of coupon marketing used by a leading e-tailing brand (name not to be disclosed). Initially, the founders of this company started their own business back in 2010. In the first three itself, they sold around 15,000 coupons! It is possible to achieve such numbers in the Indian market only with efficient coupon marketing ideas. So what was the big idea? They kick-started as a coupon oriented business and soon introduced referral programs on various commodities they sold. Apart from this, they also launched ‘Get your first deal free’ offer among many other promotional events where they made efficient use of coupon marketing.
Coupon Marketing Statistics
Coupon marketing has seen a roller coaster ride of evolution over years! Ranging from the paper coupons to digital ones, it has seen it all – the immense success, the wrongs, and even the odds! Talking about Indian upbringing, “Money Saving” is a not a strategy. Rather, it is a mindset and this mindset can never be ignored. Hence, with the heavy use of coupons and discounts, the year 2013-2015 saw a sudden growth of 13% to 65% in buying trends.
As predicted by the experts, 2020 will witness the global mobile coupon marketing growth rate rise up to 73% +.
Some leading research suggests that:
- Grocery stores (41%), departmental stores (41%) and clothing stores (39%) are the most popular locations for coupon redemptions
- 77% of mobile users said that surprise points or rewards, birthday/ anniversary discounts leave a very positive impact on their brand loyalty
- 71% of consumers followed their favorite brands on social media to get coupons
- 44% of customers say that getting promotional offers via social media influences their online shopping behavior
Types Of Discounts & Coupon Marketing
There are umpteen number of discounts, offers and coupons modern-day marketers have at their disposal. Let’s take a look at some frequently used ones:
A gift with any purchase can be the best way to provide additional value to your customers. When used strategically, it can be used to increase sales too, because who does not like to avail free gifts!
As the name suggests, here the customer’s interest decides the discount value. For example: Buy 1 formal shirt and get 1 towel free
This means that customer’s discount depends on how much he/she spends. For example: Shop worth Rs. 5000 and get 15% off. Read our blog on 7 quick steps of product pricing for more details on tier pricing.
This is the most popular way to offer discounts. This includes offering a small percentage like 10%- 20% off on products to drive sales and clear the old stock.
Showing Customer Appreciation
Loyal customers are your business’s best friend. Send out coupons to them and let them come back to you!
Some most common and effective ways to maintain customer loyalty, acquisition and conversions include:
- Monthly discounts
- Pre-launch offers
- Event attendance offers
- Referral promos
- Minimum purchase discounts etc.
Best Platforms For Discount & Coupon Marketing
Coupon marketing and discounts have the power to accelerate your business growth 10x. But this is true and possible only with the right targeting and right platforms. Before you layout your coupon marketing campaign, you need to check these primary things:
- who your audiences are?
- their profession & age group
- interest, demographics, and preferences
Apart from the ones listed above, choosing the correct platform for coupon marketing also equally important. We have listed down a few trending platforms you can use :
Since the advent of social media, the first thing that strikes into our minds is hosting coupons there. No doubt, statistics reveal high success rates of social media coupon marketing. Facebook ads can be a good channel to target the right audience. Instagram’s business profiles show an insight of your audience- run ads on Instagram and make a way through the most used photo sharing app!
E-mailers are the best form of communication for any business. They are personal, open and direct. Statistics show that on an average 20% emails are opened every day globally across various industries. Make the most of email marketing by sending follow up or trigger emails to your database regarding offers, discounts, deals, and coupons.
SMS still gives best recalls. Imagine you getting SMS from airlines service providers saying that they have 80% off on the next flight you book. At first, you ignore this message. You get the same SMS again. Most importantly, since there is a recall, you will make it a point to visit their website. That is it! SMS marketing, if pitched in the right manner can prove out to be a gem.
Other Media Channels
As the internet maybe difficult to access in the extreme interiors or far off places in the countries, going offline is a good option as well. Print media like newspapers, periodicals etc. and outdoor advertising have a stronghold in such places. As their expenses are on a lower side when compared to Tier 1 or 2 cities, discounts and coupon marketing works best.
Pro-Tip: Choose the right platform for the right product. Offers on FMCG will perform well when hosted on Radio or Television but an offer on an online merchandise might not!
Best Practices For Coupon Marketing
- Use bold, commanding & specific Headlines
- Use illustrations & photographs
- Sell the benefits, not the features
- Make the best use of white spaces
- Mention your logo in the coupon
- Use words like- free, guarantee, money, now etc.
- Capture the customer database efficiently
- DO NOT stop after the offer!
Pros And Cons Of Coupon Marketing
Everything comes with a two-fold modeling. So does coupon marketing for your business. On one hand, generating sales is a priority and on the other hand, keeping the loyalty loyal is a recurring call to maintain. The pros and cons of coupon marketing needs a bit of attention as well.
Coupon Marketing Summed Up
Weaving all the dots together, we can say that offers and discounts are not right for every business! The pre-requisites for a successful coupon marketing campaign are: a clear goal in mind, a firm understanding of the product/ brand and the willingness to take risks and experiment. Like the case study mentioned above, when coupon marketing is done in its best form, it can leverage your business by 10x. It is an unsaid goal of any growing business to increase sales, widen the userbase and onboard new customers. Coupon marketing proves to be a golden key to unlock all that your business needs!
With all your marketing efforts for your business in place, it’s a good idea to have an all – in- one payment solution in place as well. Now to enjoy the best payment gateway experience and grow your business effortlessly!