7 Coupon Marketing Strategies to Boost Your Business & Increase Sales [Infographic]
Everyone wants to save money. It’s something we think about every time we shop, physically or online.
And now more than ever, many consumers are suffering job loss and other financial difficulties in light of the changing economy, and many businesses are facing an uphill battle to keep those customers and stay open.
For many businesses, this means implementing new marketing strategies and trying different campaigns to help their customers and themselves at the same time. This is where coupon marketing comes in.
Marketing Strategies to Increase Conversions & Boost Customer Loyalty
Coupon marketing involves using coupons, discounts, promotions, or rewards programs to incentivize customers to purchase a business’s products due to their interest in saving money.
For small businesses, this strategy can increase conversions, customer loyalty, and your knowledge of your target market, meaning you can better serve your customers in the future.
No matter what you’re selling, consider implementing some of these coupon marketing tactics to stay ahead even in these hard times.
Use Limited-Time Offers
Limited-time deals and flash sales are a great way to generate a sense of urgency for the customer, making them feel like they have to buy now or miss out on a valuable opportunity.
Consider offering a discount code or a coupon if the customer buys a product in a specific time frame. You can also choose whether to apply this coupon and time limit to only a certain product or set of products, or to your entire ecommerce store.
Another option is combining a limited-time offer with a limited quantity of products for sale. For example, creating an amazing deal and telling customers you’re almost sold out and have only a few of a specific product left will only increase the likelihood of them impulse purchasing.
While limited-time deals can be spontaneous and happen whenever, another great option to use this tactic is creating seasonal promotions and discounts. Increase excitement for a season or holiday, like summer or 4th of July, by promising a discount code on a specific day of that month or season.
Try Out Different Channels
Another great strategy to get to know your customers and their spending preferences is by experimenting with distribution channels.
Most coupons are sent through text message, email, direct mail, or a combination of any of those. But to truly maximize your reach, you have to understand what your customers want and which channel they are more likely to take advantage of.
Since your customer base depends on your business and the types of products you’re selling, no two businesses are going to have the exact same demographics, psychographics, and behavior among their customers.
For example, if you own a small toy store, your target market is probably going to be very different from someone who runs a craft beer pub. Thus, you may have to try out different distribution channels for your coupons to determine which one your customers prefer.
Establish a Rewards Program
A surefire way to foster customer loyalty, creating a rewards program or VIP club entices consumers to buy more in order to achieve certain benefits. The more they shop, the more they get back — an equation that benefits both parties.
Another important advantage of establishing a rewards program is receiving customers’ information when they sign up, since their emails and phone numbers are valuable data to use for all kinds of marketing in the future.
Customers providing their own information is an easy way to establish a closer relationship and open frequent communication in terms of sending them reminders and promotions.
Talk to Your Customers
It’s important to know what kind of incentives your customers actually want, so consider surveying them and directly asking what they would prefer. You can ask whether they prefer paper coupons or over email, whether they prefer discounts or “buy one get one free” deals, and more.
Their responses can help you make the necessary changes to boost customer satisfaction and will show your customers you care about them, not about making money. The more effort you show, the more loyalty you will receive.
Implement Incentivized Lead Forms
In order to launch an effective marketing campaign, you have to have your customers’ information and the ability to reach them. Since most people aren’t going to randomly provide their contact information to anyone who asks, they need to be incentivized to give you what you want.
Solve this problem by offering something of value to the customer in a lead form, like a discount or coupon. The customer will be more likely to provide information and subsequently to complete their purchase, since now they have a discount to take advantage of.
Use Direct Mail When Needed
Direct mail has clearly waned in popularity over the years – hence the term “snail mail”, but it remains an occasionally useful technique to entice new customers. One main application of this is with potential customers who just moved into a new neighborhood.
Consider sending a letter to welcome them to the area and providing a discount for their first purchase. While this strategy may not work for every industry, for home-related businesses this is a perfect opportunity to establish a new relationship and acquire new customers.
Offer Coupons to First-Time Buyers
For an ecommerce business, this simple coupon marketing tactic can really pay off. While many customers may visit your website, a much smaller number actually makes a purchase.
A way to increase your conversion rate can be offering a discount to customers visiting your site for the first time, such as 10-15% off their purchase or a significant percentage off their first item if they buy multiple products.
A good way to offer this incentive is with a pop-up window once the customer has been on the website for a certain amount of time.
Consider Price-Minimum Coupons
This is a great way to get customers to buy and spend more while benefiting from discounts. Advertise on your website or in-store that if the customer spends more than a certain amount, they get a percentage off.
This can increase how much you earn per person because customers buy more than they may have intended since they want to receive the discount. Either way, they get more products for less and your sales increase.
No matter what your industry is or what your business does, these coupon marketing techniques can advance your company and be the strategy you need to increase your conversions and customer loyalty.
Take a look at this infographic to learn more about coupon marketing for small businesses, courtesy of CouponChief.
Infographic Courtesy of CouponChief
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