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April 13, 2022

7 Tips for Creating a Successful Coupon Marketing Strategy

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Fora Financial

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Many companies set themselves apart from their competition by starting a coupon marketing strategy. When you offer coupons, you'll be more likely to convince your target audience to make a purchase. A recent study by VoucherCloud found that 57 percent of shoppers wouldn't have made a purchase without a coupon. However, 91 percent of coupon redeemers say they'll revisit a retailer after being offered a coupon. Most customers love to save money on purchases, so they'll be thrilled to receive a discount coupon. In addition to increasing sales, a coupon marketing program might help you improve brand loyalty. However, you may be concerned that discounting your products or services will negatively impact your profits. If not done correctly, some coupon programs can hurt a company's bottom line instead of helping it. Still, increasing sales and building a loyal customer base is possible with proper execution. The following tips can help you design a successful coupon strategy without hurting your bottom line.

How to Create a Coupon Strategy for Your Business

1. Make a Compelling Offer

Your coupon is only valuable if relevant to the consumer. Therefore, it's essential to understand your market before launching a coupon strategy.  Your offer should align with your ideal outcome —whether it be attracting more customers or encouraging them to spend more money. For example, if you want to increase online orders, offer free shipping or a digital coupon code for first-time orders. Many business owners experience abandoned carts, which happens when customers add items to their shopping cart but don't check out. If you struggle with this, add automatic promo codes that show up once the customer adds an item to their cart. You may reduce your business's abandoned cart rate by offering this discount.

2. Distribute Through Various Channels

A coupon that's too difficult to find isn't an effective marketing strategy. Ideally, your voucher should find each potential customer, not the other way around. For example, you can advertise your loyalty program through these channels:
  • Website promotion: Add a pop-up that asks customers to enter their email addresses. Send them to an exclusive landing page or email them a coupon code if they provide their email address.
  • Print advertisements: Advertise your loyalty program in local publications.
  • Direct mail campaigns: Send customers exclusive coupons in the mail.
  • Email marketing campaigns: Send a monthly email newsletter to the customers on your email list with a discount code.
  • Social media posts: Invest in paid social media posts that promote your loyalty program.
  • Content marketing: Write a blog post on your website that includes a call-to-action, leading to an exclusive offer.
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3. Customize Your Coupons

Coupons are also a great way to advertise your business, so you should include your company logo or eye-catching graphics. Your potential customers are more likely to notice your coupons if they're visually appealing. If you're working within a limited budget, many online tools allow you to create your professional designs for free. Or, you can hire a freelancer or graphic design company to take ownership of the project.

4. Appeal to Unique Customer Segments

While your primary goal may be to attract new customers, your coupons don't need to be a one-time deal. Vouchers can also build customer loyalty by offering periodic discounts and promotions. Email is an effective tool to target customer segments with specific offers. For example, you can reward your best customers or entice infrequent customers to purchase items by offering exclusive promotions.

5. Don't Offer Too Many Deals

Offering coupons is a great way to keep your customers satisfied. However, you shouldn't offer so many discounts that they never pay full price. If they get used to consistent offers (for example, weekly or monthly coupons), they may delay their purchases. When you send out coupons, let the recipient know that this is a unique opportunity. The offer won't resonate with your customers if it becomes too commonplace.

6. Set a Deadline

In addition to marketing your company, your coupon strategy should include a call to action. You're more likely to see immediate results if you create a sense of urgency. Designate an expiration date instead of giving recipients an open time frame to use your coupons. Also, make sure the date is clear; you don't want to disappoint potential customers by rejecting their coupons.

7. Do the Math

Before unveiling your loyalty program or coupon offerings, determine how much money you'd like to earn. You'll likely lose money if you consistently discount your products or services without increasing your sales revenue. Ultimately, whichever strategy you implement shouldn't interfere with your ability to operate profitably.

Conclusion: Attract Long Term Customers By Offering Coupons!

There is a myriad of tactics available to you to market your business. Offering coupons to your small business customers can help you attract new business and grow your repeat customer base. Like any business decision, you should weigh the pros and cons before deciding on the best approach. Editor’s Note: This post was updated for accuracy and comprehensiveness in April 2022