Coupon marketing has taken the world by storm recently. Many retailers have found that coupon marketing can help increase conversion rates, create higher order values and draw consumers in. But, there are a few dos and don'ts of couponing that need to be taken into account before you move towards coupon marketing.
Do's of Couponing
Do offer coupons and offer them through affiliate marketing. Through this medium, the coupon will reach the most users and thus have the highest chances of getting used. A study found that the average order without coupons is $122, with coupons the average order is $216. Offering coupons can lead to higher profits.
Do offer a “deal of the day”. Deals of the day are an extremely effective marketing tactic that drives more people to your website daily. Even if the bargain shopper doesn't care for the deal on a particular day they have made it to the website and they may purchase something even if it is not the deal. This is an easy way to drive more traffic to your site on a daily basis.
Do add necessary restrictions to your coupons. Retailers who fail to place restrictions on their coupons can be in a world of trouble if a multitude of users all take advantage of loopholes. Ensure that coupons cannot be combined to avoid hoarding tendencies that can drive down your profit significantly. Consider choosing a short lifespan for your coupons, as creating a sense of urgency around the coupon will definitely help you convince more shoppers.
Couponing Don’ts
Don't send out coupons before you do all the research. Coupons can be a great way to drive traffic but there have been instances were retailers see increased conversions rates and higher order value while still seeing diminishing profits. Run all the metrics you normally would with the coupon's value. This will help you recognize whether your profit loss is substantial enough to pull the coupon code.
Don't hide important information. There are coupons that are simply difficult to understand and the hidden information doesn't become apparent to consumers until the head to the checkout. All the information and any QR code needs to be front and center. Giving a consumer a coupon without telling them of the restrictions is like handing a 16-year-old the keys to a car and then telling him he can't drive. The only thing you'll accomplish is creating angry customers and angry customers won't spend their money with you.
Coupon marketing can be a great way to drive more traffic into your store or website as long as it is done correctly. Follow these couponing dos and don'ts for the most effective marketing campaign possible.