Over the last few years, “Couponing” has become an indispensable retailer’s tool.
Reasons to use coupons include:
- To Increase Number of New Customers
- To Increase Sales of a Specific Product
- To Increase Branding & Awareness
- To Reward Current Customers
- To Entice Return of Former Customers
- To Create An Opportunity to Up-sell a More Profitable Product
- Highly Measurable Form of Marketing
Online Coupon Strategy
Retailers are increasingly use new technology to interact with potential customers.
The rise of “Couponing’ in recent year
Elements of Effective Coupons
Saving money by itself is not a compelling incentive. Like any promotional advertisement, coupons should be designed to entice the consumer to actually redeem the discount. Here are some specific elements a retailer should keep in mind when creating a coupon.
- Clear, Concise Text Detailing Offer and Terms
- Face Value
- Product Image
- Proper Bar Code, If Relevant
- Any Necessary Legal Copy
- Expiration Date
- Company Name & Address
- Offer or Tracking Code
A coupon campaign requires testing and measuring. The use of tracking codes printed directly on the coupon, or coded in electronic delivery, allows a retailer to see which customers redeemed the coupons and where those coupons were found. Evaluating the method the coupon is delivered along with the coupon response, product sales and profits can help determine which promotion or coupon works best with your audience.
Lastly, there are a few things to remember:
- For slower months, stimulate purchase and reinforce behavior with compelling coupons.
- Up-sell and Cross-sell your products and services with coupons.
- Measure the effectiveness of your coupons.
- Evaluate your coupons to find a good mix of growth and frequency.
- Try not to subsidize the purchase of consumers who would have purchased without a coupon.
Iggnition’s eCoupon service can help you to interact with potential customers and increase your bottom line.