Coupon codes are discount offers and deals provided to attract more audience. Most businesses use this marketing strategy to grow their customer engagement and increase their sales. Promo codes encourage people to purchase their products. According to the study, 96% of customers have use coupons one way or the other in the last 90 days.
There are many types of coupons. The main ones include printable coupons, paper coupons, and digital coupons. These coupon codes are beneficial for both retailers and customers. They have made purchasing affordable for customers while also increasing sales of marketers. Research indicates that 48% of customers buy something sooner when they have a coupon.
Why marketers issue coupon codes
What are the benefits of coupon marketing strategy
Ways to improve coupon strategy and increase revenue
Future of coupons
There is no doubt that coupons drive customer engagement and increases revenue. In this article, we will look at the benefits of using promo codes and discounts on your business. Using this marketing strategy has proven beneficial for marketers. We will discuss ways to improve this strategy and generate more sales. Furthermore, we will also discuss the future of coupons and how it contributes to the success of retailers.
6 Benefits of Coupon Codes for Retail Businesses
Companies offer coupons to attract customers and increase their engagement. It is found that 37% of the customers purchase more when they have a coupon. A discount reduces the price of a product or gives additional rewards on certain items. This allows buyers to make budget-friendly purchases and encourages them to visit your store again and again. Let’s look at some of the advantages of adding coupons to your marketing strategy.
Attract new customers
It is said that retaining existing customers is easier than getting new ones. However, coupons are an effective and affordable way of bringing in potential customers. People tend to purchase at stores that offer some sort of discount or deal, especially when visiting a new one. This allows them to try a different product without paying the whole price. This way, you can introduce new products and increase its engagement rate. Another advantage of promo codes is that it provides a better medium to compete with your competitor. Using this strategy, you can not only get new customers but also turn them to regular buyers.
- In 2019, 19% of internet users in America always use coupons.
- 32% of US internet users use coupons sometimes in 2019.
Gain customer loyalty
Gaining customer loyalty is as important as bringing in new shoppers. To retain your consumers, you need to make them feel valued and appreciated. In this regard, offering a cut-price or high-quality product is not enough sometimes. However, coupons pay a huge role in generating customer loyalty. You can issue exclusive coupons and deals for your loyal customers and make them feel special. This way, they will continue to shop through your store and help you generate sales.
- 68% of buyers think that coupons generate customer loyalty.
- According to Edelman, regular customers are 67% more likely to spend more than new customers.
Target repeat business
Marketers need regular customers to generate profit. This means that people need to visit your shop frequently. A great strategy to ensure this is to issue special promotions that require buyers to utilize on their next visit. For instance, if you bought a product and got a coupon with it that can only be utilized with your next purchase, you have to visit the same store again and buy a new item to avail of that promotion. This will not only increase your customer engagement and generate regular customers but also will boost your sales.
- 76% of customers said that it is important to receive personalized discounts based on their shopping history.
- 54% of consumers said that they feel special while receiving an exclusive deal.
Promote a new product
Often it can be difficult to convince customers to buy your new product, especially if it is a bit pricey. Many marketers advertise their new products by giving free samples. However, this can be costly as you have to spend money on products as well as on free samples. Instead, you can attract your target audience by offering coupons and vouchers. This will not only draw the attention of coupon-using buyers but also of regular consumers. This way, you can easily sell your product and if consumers like it, they will hopefully buy it in the future even if coupons are not available.
- 41% of consumers are more likely to seek out something to purchase if they have a coupon.
- 38% of people are likely to buy something they don’t need when offered a coupon.
Sell your products strategically
Most retailers face problems in clearing their stock and encouraging customers to buy products, they normally wouldn’t. This can lead to a huge loss, if not dealt with carefully. A great way to overcome this is to reduce the price of such items by offering promos and deals. Another way to minimize the loss is to lower the price of high-end products during promotions. This way, you will be able to manage your sales and convince people to buy your products.
- 60% of the consumers said that they prefer buying a cheap product rather than shopping online.
Brand recognition holds huge importance for any business. This means that your brand will reach a wider audience and more people with be drawn towards it. Coupons play a massive role in reaching more people and building a strong presence. People will become aware of your products through these promotions, and even if they don’t visit this time, it is more likely that they will, during the next. It is also easier for marketers to reach a larger audience through coupons. You can use many mediums to issue coupons to customers including emails, text messages, social media sites, and many more. This way, you can engage more people and generate more sales.
- 39% of buyers said that they are more likely to purchase a product from a brand if they offer coupons, they otherwise wouldn’t have.
- 58% of people said that exclusive offers increase their likelihood to purchase a product.
Ways to Improve Coupon Marketing Strategy to Generate Revenue
It is a known fact that customers always look for products that offer money-saving deals. That’s why a coupon marketing strategy is so successful for retail businesses. Study indicates that 25% of consumers spend more than they intend to with a coupon. We should explore new and better ways to share coupons with the audience and improve the coupon marketing strategy. Here are some of the ways to do so.
Offer discounts to attract lead
Lead magnets are marketing tools that help retailers to attract new consumers. It comprises of a variety of incentives according to your business type. One of the most popular among these lead magnets is discount offers. For instance, you can ask people to subscribe to your page to get some percentage off on their next purchase. These tools work great, especially if you are building your email list as many customers don’t mind sharing their email address in exchange for a discount. Just make sure that you frequently update your offers and make it relevant to your target audience. This way, you can reach a wider audience and gain more customers.
- According to research, 76% of consumers are willing to share their email address if they get a special offer in return.
- 47% of consumers prefer free shipping rather than saving on everyday products.
Provide limited-time offers
Limited-time offers are based on a specific time limit. It means that the customers can only avail it in the given time frame. These types of offers tend to make customers act faster than usual. Limited-time offers are usually given on special occasions like holidays or during product launches. They tend to attract more audience and help you distinguish from your competitor. You need to do thorough research on consumer behavior to know which offer works best among your target audience. You can also use email marketing to present exclusive limited-time offers to your subscribers.
- 50% of the customers say that they find limited-time offers appealing.
Create a customer reward program
Reward programs are a great way to show appreciation to your loyal customers. In exchange for them consistently buying through your store or website, you offer them exclusive money-saving deals. This can vary according to the customer’s preference. First, figure out what your regular customers frequently purchase and what offers they usually look for. This will help you arrange their favorite deals and encourage them to stay loyal to you for longer. You can also add special deals when your brand achieves a milestone. This way, you will stay connected to them and will make them feel valued.
- Research shows that 84% of customers are more likely to stay loyal to brands that offer customer reward programs.
- 71% of the consumers say that they follow a brand in hopes of getting coupons.
Try different distribution channels
In this age of social media, there are multiple coupon distribution channels and the exposure is large-scaled. You can reach your audience through emails and text messages. These mediums are known to generate customers. However, you should experiment with other channels as well to attain maximum reach. These channels include Facebook, Instagram, Twitter, and YouTube. You should offer coupons and vouchers through this medium as thousands of people use these platforms. Always make sure to update your offers and avoid over-doing it as this can contribute to people losing their interest.
- Study indicates that businesses that use emails to send coupons have shown a 48% increase in revenue.
- 53% of consumers prefer receiving their coupons digitally via mobile.
- 74% of people use social media to decide whether to purchase something or not.
General Statistics Based On Coupon Codes
Target distribution channels
The above table shows the preference of internet users on receiving mobile coupons. 35.2% of consumers prefer receiving coupons via email, while 34.9% prefer receiving it via text messages.
Paperless coupon usage behavior among generations
The above table shows the behavior of different generations related to paperless coupons. Millennials are more likely to use these coupons with 88% followed by Gen Xers at 83% and Baby Boomers at 64%.
Reasons why digital shoppers abandon their cart
|Shopping is expensive||63%|
|Discount codes don’t work||46%|
|The order takes ages to ship||36%|
|Had to re-enter delivery details||25%|
Most customers often abandon their carts during online shopping. The primary reason being expensive shopping with 63% followed by nonworking discount codes at 46% and delayed shipping of orders at 36%.
Future Of Coupons And How They Contribute To The Success Of Retailers
Coupons are the future of e-commerce marketing strategy. They have made many small retail businesses successful by attracting an audience and thus generating sales. Coupons offer amazing saving-money deals leading to a guilt-free shopping experience. According to research, there were 1.05 billion mobile coupon users globally in 2019. Customers expect discount deals and vouchers from their favorite brands. It has become a necessary element to build customer loyalty. Coupons have not only contributed to the success of marketers but have also allowed buyers to make affordable and reasonable purchases. Personalized coupons are the future of marketing strategy as this allows each consumer to have an exclusive deal and have their personal touch to given offers. This will make them feel appreciated.
- Study indicates that by 2021, 72% of the e-commerce will take place through mobile phones and tablets.
- 60% of people love receiving digital coupons.
- 48% of consumers say they spend more when their experience is personalized.
Coupons are an effective marketing strategy to increase customer engagement and generate profits. It allows people to save money and to make reasonable purchases. However, retailers and marketers need to realize that coupon strategy should be used in combination with other marketing strategies. Only then, it will help businesses to grow and reach a maximum audience. Make sure to be informed about your target audience and their buying behavior. This will help you get ideal coupons and deals for them and gain more customers.