It is estimated by eMarketer that 66.2% of internet users will use digital coupons this year, and this will increase to 68.4% by 2022. -eMarketer
Are coupon codes part of your business? If not, it’s time to get serious about your coupon strategy.
Coupons are a great way to boost customer acquisition, enhance retention or reactivate customers that haven’t been active for a while, but launching a successful coupon campaign can be tricky.
What does a good coupon code strategy look like? What kind of security, tracking and budget limits do you want to implement? How will you communicate or display your coupon codes?
To help answer these questions for your business, we are going to share some best practices we have collected from helping all types of companies and customers launch successful coupon campaigns.
If gaining new customers is one of your goals, try using onsite coupons. You can show them directly on your website or in a “Special Offers” section. The combination of a time-sensitive coupon and a generic coupon that is available to all customers makes this a great tactic for increasing your customer base and reducing acquisition costs.
Example: Casper Discount Code for a 10% discount on any order for a mattress
Customer retention is no joke these days and most likely one of your business' top priorities in 2019.
Increasing customer retention rates by 5%, it can increase profits by 25% to 95%. -Harvard Business Review
A simple referral program is a great idea to boost customer retention while also increasing customer loyalty.
Example: Uber In-App Mobile Referral Coupon
Maybe you already have a solid customer base, but some of them haven’t been active in a while? Consider sending your inactive customers a coupon code with a discount for their next purchase.
Real-life example: Westwing Valentine’s day coupon
Is brand loyalty a priority this quarter? (Hint: it should be!) Then use email marketing to reward existing customers with a personalized reward that is redeemable only with a specific code. This is a great tactic to ensure customers choose you over the competition.
Real-life example: Liebeskind Exclusive Birthday Coupon
Now that you have some great ideas for launching a coupon strategy, you will need to think about implementation. Having the right coupon software is key to a successful coupon campaign. If you are new to the coupon game or want to level-up your strategy, the right coupon solution should have the following features:
There is a wide variety of coupon tools on the market, but few offer a full range of flexibility for all use cases above. So remember to choose wisely! If you are at the “build or buy” crossroads or want to ask our promotion experts about your use cases, please get in touch.
There are many different ways you can grow your business with coupons, but the right technology is often a huge limitation.
Coupons might seem like an easy bet, but even the most basic campaign can bring your business major losses by targeting the wrong customers or falling victim to fraud. You’ll need the right kind of promotion infrastructure to make sure you achieve your business goals.
We know it can be tough to get the perfect mix of pricing, reward and effort to get your promotions right.
Get in touch with any use cases you want to implement and we'll show you how we'd do it with our Promotion Engine.