Top 6 Strategy To Improve Your Coupon Marketing Strategy & Boost Sales
In the year 2020, Statista conducted a survey of 1000 respondents , found out that 88% of people have used coupons. According to data Market Research has published that in the year 2020, the global market for mobile coupons was estimated at 393.3.1 Billion. But these estimations were affected due to COVID-19 pandemic.
It has been estimated that the coupon market is expected to increase at the growth rate of 67.9% for the period of 2020 to 2027 expected to reach $14.8 Trillion by 2027.
According to a 2021 survey conducted by Statista, an average of 83 percent of U.S. shoppers have used an online coupon before. Among the different age groups surveyed, digital buyers from ages 45 to 60 had the highest usage rate, with 89 percent.
Though customers love to do shopping, one thing they have at the top of their mind is to save their money. This desire to save is why discounting and coupons have become a necessary part of marketing specially for ecommerce business. As per the study users spend more than 20% money on order purchase than the without one.
Coupons play an important role for ecommerce businesses as they encourage users to make a purchase, which generates revenue. As per the research more than 40% of users are likely to buy sooner if they have a coupon and more than 30% of users buy more than they normally do.
You don’t have to work tirelessly to find a clip and organize the coupon or to burnish the coupon site. You just have to find the best marketing strategy which suits your product and business best, to find out the insights about the platform where they spent their time most-over mail, social media, or any other platform.
You have to maintain the right balance between the coupon strategy. You can’t send the same coupon again and again. You have to be balanced about marketing strategy, how much to use discounts, promotions, coupons, advertisements, giveaways etc. also, when and where to use them. You have to be strategic as a business especially if you’re in ecommerce you have to make sure to expand your funnel size but also to maintain the ROI. Make sure you’re using the relevant and on time marketing strategies as per the customer nature, geography etc.
Strategies to Improve Coupon Marketing Strategy & Boost Sales
We have consolidated top 6 strategies for you to improve you coupon strategy and increase your numbers in sales.
1. Add Discount to Lead Form
For this I’ll suggest you the Lead Magnet tool, it is used to attract new leads. It is flexible and offers a variety of incentives based on your company nature and customer preferences. For instance, users can get a lot of things like access to e books, a webinar, an event , reward points in exchange of their mail address.
The most popular type of lead magnet is the discount which everyone loves from buying a vegetable to buying a car. We wish to have a discount price. In this, users can have a discount and can redeem on their next purchase.
Lead Magnet instantly pop-up on the screen when;
Customer browse on the app
When a customer scroll down the page they are on
When customer move to close the page : to attract the customer and stop them from leaving
Lead magnet is for you if your goal at any stage is to increase your email list. More than 70% of customers don’t mind sharing their email address if they’re getting any special offer.
Ensure your customer visits back soon and for this don’t forget to update your coupon offers. Because fresh deals attract the customers. Make sure that what you’re offering is relevant to the customer and based on your audience preference. After this, you’d be able to nurture your leads more efficiently and effectively and can share exclusive offers for the selected audience as compared to others.
For instance, Myntra , an Indian ecommerce company, offers a rupees ₹300 discount on your first order in addition to the free shipping charges.
Well, if you don’t know myntra is a fashion ecommerce site, where the targets are the people who have interest in fashion or beauty products or even antique accessories.
To get the right lead magnet for you, find out what excites your audience. For instance, nearly 50% of customers say they’re likely to buy when or from those platforms who offer free delivery , especially groceries or pantries.
As per the Statista, unexpected or high shipping costs make customers abandon their cart in between the checkout process.
2. Use Limited-Time Offers
A limited -time offer is a type of discount that customers have but only for a limited period of time. For instance, you can set the timeline for the discount for the specific hours or days. The ultimate motive of the limited time offer is to make users purchase early as the time is limited.
As per the study, it has been noted that customers find these types of offers appealing.
Limited-time offers usually launched during the month ends, on holidays, or before the festive season. This strategy works quite well in case of those customers who are in the process of considering making a purchase.Especially in case of those customers who have added their products in their wishlist and were waiting for the discount or a big-saving deal.
Before proceeding with your limited-time offer, don’t forget to do your homework i.e., research what other competitors are doing? How much are they offering? Then what, just play your master stroke, give the same or a bit more with some additional offer. To attract the attention of customers to your business. For instance, let's say your customer is offering 10% off you can give 10% off but with a coupon, which can be used for their next purchase or you can provide free shipping.
Notes to take;
Use effective email marketing to keep your all offers at the top of the mind
Always set a countdown timer which will create urgency for the customer and will make them make a purchase for the product they were considering.
3. Strategize What Types of Deals to Offer
Percentage or rupees amount off are one of the most used discount types usually businesses use. But you don’t have to limit yourself to just these. The type of discount you are offering or are planning to offer depends on your revenue funnel and cost you have set for marketing.
Giving a discount is another thing, but is it affecting your budget line? Are you able to even make a profit or just lose the money?
Before launching your discount strategy, research your customer what matters most to them. If you’ve studied, you’ll have the data insights to take the action in a go. It has been noted that more than 80% of customers like to give suggestions to businesses to serve them better in future.
Based on a survey conducted , customer were asked what kind of discount they expect from company, the answers are as follows:
Free gift with purchase- anything even a inexpensive thing but should be valuable
Chance to win a giveaway
Offer on cart - on added items
Offers on referral
Always experiment before the launch, because by the time customer taste changes due to new trends, experiences, or advice from their network.
For instance, at present EarPods are in trend in ear wearables. But if you wish to launch a product with a long wired earphone no customer would like to buy it. Because people buy what is trending in the market.
Always keep an eye on your conversion insights to check the marketing strategy you have opted for , is it even working or not? Are conversion rates moving up or not?
4. Create a Customer Reward Program
Reward programs are one of the strategies always in the limelight. It helps in encouraging customer loyalty. It works like in return of buying frequently customers receive some exclusive offers which just not offer value but also save their money. The more loyal customer base , the higher the revenue.
As per the study more than 80% of the customers are to be loyal to those brands who have the reward programs. You can reward your loyal customers by offering them special offers or discounts or a giveaway when they reach a milestone. For instance, thank you note for hitting century orders.
The first and foremost step you can take while creating a reward program is to find out what your customers want. You'd be able to know the answer if you have enough insights of customer behavior. You’ve to study about what kind of customers buy what kind of products the most and what type of reward they’ll like to have- percentage or rupee savings.
Secondly, you have to do customer segmentation, so that you cater specifically to the customer as per their segmentation. For instance, you’ve a kid clothing brand that caters to girls and boys. So,you have to create a reward program where each segment will get encouraged to make a purchase.
Ecommerce brands like Shein offer loyalty bonus point programs for customers and can earn 1 point for every penny spent on the purchase. This way, customers spend more, they unlock more rewards.
You have to maintain customers in queue to move them for another reward tier. Use email marketing, SMS marketing to remind them what they can get in future , from the process they are in now.
And one more thing to be taken care of is, incorporate artificial advancement in your tiered rewards. When a new user joins for the first time for a reward program give them some free reward points to battle the reward program. A study has shown that customers who have started the program with the reward points gravitate more than from those who have zero.
5. Use Different Distribution Channels
It has been noted that coupons sent via mail have generated around 50% increase in revenues for businesses. But as a lot of time emails don’t even get opened so do go with the other types of marketing channels for wide reach and high returns.
For instance, use rich media messaging to share discount offers as open rates for text are higher than emails. For your reference, more than 50% of customers find coupon delivery through mobile appealing and hassle free. Mobile device option inclusion is very important as more than 70% of ecommerce transactions takes place through mobile as per report of 2021.
As you can see in the image above, Nykaa is an ecommerce platform but it has opened their store as well. It simply means, the wider your distribution channel the higher revenue.And, Nykaa has clearly mentioned the store addresses over the website. So, if the customer wants to go to the store, he/she can.
Also, don’t forget to move into social media marketing since it's noted that more than 60% of people follow brands for the purpose of getting some kind of discount, coupons or rewards and more than 70% people made their purchase decision by social media. There are billions of people using social media platforms like Instagram, Facebook, Twitter. So, your strategy should be viable with all the social media platforms. Because social media will give you a new exposure to get noticed.
Keep in mind that don’t overuse coupons. Because if you make your product always on discount, giveaways, or in reward programs people will not feel it's valuable. Plan your discount strategies for specific days ,holidays or festivals. These are the times customers tend to buy more and it makes sense to target them on these days.
6. Use Creative Visuals
We all know that coupons are just a way to push customers to make a purchase. You can send coupon code in text form as well. But will it work ? Is it attracting you as a customer?
Customers are attracted towards visuals. So, don’t forget to create eye-catching visuals, color and text. Because the main motive of these visuals is to make customers excited.
You’ve to design your coupon as per your customer segmentation especially when you’re using an email campaign as part of your coupon marketing strategy.
Have a look below it will clearly state the difference visuals make while making a purchase. How Nykaa made its visuals attractive and organized. Customers will find it informative and it will deliver a good user experience too.
Have you noticed how visuals impact the final purchase? So, it is important to create relevant and attractive visuals. Also, when a customer uses a coupon, send a thank you mail and include links for your other range of products they browse for.
This approach works quite well, because customers appreciate personalization. More than 60% of customers appreciate brands who send them offers and links to the products they’ve browsed before. Make you offer just not visually appealing but personalized also.