Are you looking for ways to reward loyal customers and boost sales? Coupon codes are a great way to show appreciation for your customers. They also incentivize customers to make repeat purchases, according to a survey from Blippr. Their statistics indicate that 29% of online shoppers are inclined to make an unplanned purchase if it comes with a significant discount. Whether digital or physical, coupons act as vouchers, offering discounts or exclusive benefits during transactions.
This blog will thoroughly explore different categories of digital codes, exploring each type's unique advantages to businesses and consumers. We'll also provide tips on when and where to use coupon codes to maximize their effectiveness. Thus, whether you're just starting a loyalty campaign or looking for ways to improve your existing program, read for some helpful tips!
Coupon Codes: The Right Direction for Your Business Model?
By offering discounts or special deals to those who refer others to your business, you show appreciation for their support and incentivise them to continue spreading the word about your products or services. This can lead to a domino effect, as their referrals may also refer others, ultimately driving more traffic and potential sales to your business.
Advantages of Implementing Coupon Codes
One of the main advantages of digital coupon codes is increasing loyalty within your base. Coupons will increase engagement with your customer base. Your customers will be encouraged to keep track of exclusive coupons, special days, social media, or apps.
Coupon codes can be used in various ways and at different times to incentivize customers. They can be offered as a reward for signing up for a newsletter, making a first purchase, or referring a friend. They can also be used during slower sales periods to attract more customers and increase revenue. Additionally, coupon codes can be strategically placed on your website and social media platforms or sent via email to reach a wider audience and drive more traffic to your business.
With the ability to track and analyze the usage of coupon codes, businesses can gain valuable insights into their customers' shopping behaviours and adjust their marketing strategies accordingly. Whether for a limited-time offer, holiday promotion or to boost customer loyalty, coupon codes are a powerful and versatile tool for businesses to utilize in their marketing efforts.
Which Businesses Should Think About Using Coupon Codes?
Coupon codes benefit many businesses, including e-commerce, retail stores, service-based enterprises, subscription services, local establishments, and more. Whether aiming to boost online sales, revitalize a sluggish business, attract foot traffic, or secure customer subscriptions, coupon codes serve as versatile tools that cater to diverse business needs.
For example, Amazon encourages sellers to share coupon codes for upcoming sales, allowing customers to enjoy discounts or freebies. Banana Republic strategically displays diverse coupons on their website, featuring enticing offers such as free shipping on orders over $50 and a 30% discount on sale items. Both result in fostering larger order volumes and maintaining customer interest!
3 Types of Coupon Codes: The Right Fit for Your Business
Various coupon codes cater to distinct customer preferences. Free shipping codes specifically appeal to customers who value eliminating shipment fees, as they view these charges as unnecessary and appreciate avoiding what they perceive as an extra expense. For this customer segment, free shipping codes serve as an incentive, preventing them from feeling like they are giving away money without receiving anything in return. Percentage-based coupons are a magnet for savvy shoppers who relish the art of negotiation. These customers thoroughly enjoy securing a good deal and controlling their purchases, treating discounts as a favourite pastime.
These analyses help your business by offering insights into customers and their preferred types. If you ship globally, your customers would like free shipment! If you offer items that go with each other, like undergarments, your customers would probably want discounts to reduce the total purchase amount! Review some of the most popular coupon code types and understand them better to help your business.
1) Percentage-Based Coupon Codes
Shopping is a delightful experience, but what makes it even better? Discounts with numerical value! As customers explore your app or website to make a purchase, they navigate through different sections, seeking specific items or staying updated on the latest trends that match their preferences.
Percentage-based coupons add another layer of excitement by offering customers a discount based on a specified percentage of the total purchase price. Imagine this: you need a hat for the summer, and you have a go-to shop. You go on their app or website to purchase something and are delighted with a per cent off coupon in exchange for shopping, your email or a quick membership (all free, of course)!
Percentage-based coupons work well with WELCOME, OFF, and themed coupon names such as SUMMER, FALL, SPRING or WINTER. After deciding on the name aligned with your intent, you can choose how much your customers will get! For example, WELCOME10 means that if you are a new customer, you get a 10% reduction in the overall cost of the purchase. These coupons prove to be a powerful strategy, especially for customers actively seeking attractive deals. Their simplicity and flexibility make them perfect for enticing new customers through store-wide sales.
Percentage-Off Coupons vs Money-Off Coupons
Percentage-off coupons are more beneficial to customers. 15% percentage off from 500 dollars is more beneficial than a 50-dollar discount. Studies show that people often perceive percentages as a more considerable saving than a fixed amount, even if the discount is equal.
This can trigger buying behaviours like adding more items to reach a higher discount threshold. On the other side, customers need mental math to figure out the discount, which can be off-putting for some. And if they don’t do the math in the checkout phase, they may be disappointed since they expected a more significant discount from the total.
Money-based coupons make it easier for the customer. The exact savings are clear and upfront; therefore, customers can make quicker purchase decisions. Even though percentage-off deals offer more in large purchases, money-based coupons are preferred by %30 more.
Choose what you are going with according to the preferences of your audience. No coupon is valuable if your customers do not use it!
2) Freebies: BOGO Coupon Codes
Buy-one-get-one is an all-time favourite! Who does not want to get one item with another equal? Well, let us tell you, it's no secret: everyone likes it! Offering a free item with a purchase entices customers to try your product and creates a sense of gratitude and satisfaction. This appreciation can lead to customer loyalty and word-of-mouth marketing.
Additionally, BOGO coupon codes can help clear out excess inventory and increase sales, making them a win-win for both the customer and the business. By providing something extra, companies can show their customers that they value their patronage and are willing to go the extra mile to make them happy. So whether you're a business owner looking to drive sales or a savvy shopper looking for a good deal, BOGO coupon codes are a great way to get the most bang for your buck. Don't miss out on these valuable savings opportunities!
Why BOGO’s work?
BOGO codes make customers feel like they've gotten a great deal without putting in extra time or effort. By understanding and utilizing these consumer desires, businesses can effectively maximize customer value and drive engagement through BOGO deals.
BOGO coupon codes help businesses attract new customers and build brand loyalty. Offering a free or discounted item makes customers more likely to try out a new product or service, leading to repeat business and positive word-of-mouth recommendations. This can be especially beneficial for small businesses or new companies trying to establish a presence in a competitive market.
BOGO coupon codes can also strategically target specific customer segments or promote products. For example, a clothing retailer may offer a BOGO deal on summer dresses to attract customers looking for seasonal items. In contrast, a grocery store may offer BOGO deals on pantry staples to encourage customers to stock up.
3) Mystery Coupons: Ready? Start!
Want to add an element of surprise or want your customers to feel like they have earned themselves a great deal? Gamification coupon codes might be the answer. By incorporating simple games similar to Candy Crush into your app, you can allow customers to unlock discounts, just like McDonald's does. Alternatively, you can introduce an element of luck by letting customers spin a wheel, similar to what Vodafone does.
These gamified coupon codes make the coupon redemption process more enjoyable for customers and create a sense of excitement and engagement, ultimately driving customer satisfaction and loyalty. By incorporating elements of fun and chance into your coupon strategy, you can create a truly unique and rewarding experience for your customers.
Bonus: Loyalty Points
Loyalty points are a valuable reward system earned based on customers' spending at a store. They can be redeemed for discounts on future purchases, enticing customers to continue doing business. The Loyalty Program plugin seamlessly integrates with payment processors, making it easy for customers to earn and redeem their points. This increases customer satisfaction, builds loyalty, and collects valuable customer data. Loyalty points also benefit the store by growing sales, revenue, and customer retention. They can also be used as a promotional tool to attract new customers.
Coupon Marketing Tips: Effective Strategies for Success
Creating the perfect coupon marketing tips can change according to your business's needs. However, some essential parts need to be met. Let’s explore some of the musts of coupon marketing!
Coupon Marketing Intentions
Businesses should decide on the audience, and what they require. As mentioned above, different customers have unique demands that change their purchase behaviour. Your business has to decide on the intent! You might need percentage-off coupons if you want to empty your storage and close the year with a bang. If you need new customers, you may consider using subscription-based coupons where customers create an account or sign up for a newsletter to achieve the code.
Once you've determined your approach, take a moment to consider the theme of your coupons. Is it aligned with the spirit of spring, or does it resonate with a specific holiday? Ensure that the chosen theme holds significance either for your business or your customers, adding a meaningful touch to your coupon campaign.
Coupon Codes: Simple or Complex?
Design coupons with carefully considered conditions. Complexity should serve a purpose, offering value without overwhelming customers. A well-crafted coupon can drive substantial sales and attract new customers. Contrarily, a poorly designed one may cause confusion, resulting in unused coupons.
Whether it's gamification, user interface, or campaigns, simplicity tailored to your audience is key—striking the right balance to be straightforward yet not overly simplistic, avoiding any doubts or hesitations from your audience. Ensure transparent communication about the terms and benefits of your coupons. Clear communication builds trust with your audience and encourages them to take advantage of the offer without confusion.
What’s Your Emergency: Coupon Expiration
Establishing a sense of urgency should be the paramount rule when employing coupon codes. Customers desire to secure a great deal precisely when they need it. This sense of luck and immediacy is a compelling force, driving them to choose your brand for their shopping needs—potentially encouraging them to make more purchases than initially planned!
Advertise Your Coupon Codes
Whether to announce or keep it a secret makes a significant impact! Some businesses thrive on the attention garnered by discreet coupon codes. While not entirely secret, they strategically announce these codes through a single channel or exclusively to staff. The element of surprise greatly influences customers, leading to enthusiastic recommendations.
On the other hand, widespread announcements through multiple channels ensure that your customers are well-informed about the discounts. You must create buzz through exclusivity and ensure broader awareness for maximum impact. Consistent and coordinated promotion enhances visibility and engagement. The effectiveness of any code lies in its utilization. The result you should seek is to make the most of your customers' use codes!
Track and Analyze Coupon Codes
Tracking coupon performance helps assess coupons' performance by looking at metrics like redemption rates and customer acquisition. This information gives insights into customer behaviour, preferences, and return on investment. By using this data to make informed decisions, businesses can allocate resources wisely, adapt to market changes, and continually improve future coupon strategies. In essence, tracking coupon performance is crucial for measuring immediate success and building a foundation for long-term effective marketing.
In Summary
Coupon codes are a powerful tool for businesses to reward loyal customers and boost sales. Coupons require careful consideration of your existing and most loyal customers and new potential customers you want to attract with your enticing offerings. It appeals to both groups, so you can maximize your success and increase your customer base.
Digital coupons are witnessing substantial growth, reflecting the broader trend of increasing digitization in various aspects of life. Although some may have a learning curve to trust and adapt to online coupon codes, the transition is gradually gaining acceptance.
In the face of economic challenges like inflation, consumers are becoming more financially responsible, necessitating careful budgeting and rational purchasing decisions. Coupons are key in enabling individuals to save money, making them an integral component of a sound household budget. As the landscape evolves, incorporating a coupon marketing strategy proves to be an effective means of fostering brand loyalty and driving customer acquisition.
Understanding and adapting to these trends will be crucial for businesses seeking to navigate the evolving domain of coupon marketing successfully. If you don’t want to be left behind, you might want to consider implementing coupon codes to your loyalty program. Don’t know where to start? Contact Kaizen today, get insights into loyalty programs, and grow your business with a tech lead!
