If you’ve bought something online, you’ve likely seen that blank box at the end of a checkout process asking for a promotion code. It’s always a triumphant feeling to enter those magic numbers and watch your order total become a fraction of what it was before. To put it frankly, consumers want to feel special. When you have access to a promo code that you know others might not, it feels like you have a leg up on everyone else, even if the discount is small.
Discount shopping is nothing new online, but many people misunderstand the value of digital coupons. Effective marketing strategy has proven that one group of shoppers should be using coupons and another group should not. Here’s why:
1. Online coupons should be for new buyers. We’ve seen many companies using coupons for the purpose of driving people to their website, but the strategy should be more specific than that. You want the coupon users to be new customers. Increasing your customer base is the primary goal of an online campaign and if you have returning customers using coupons it can dent in your profits instead of increase them.
2. Your returning customers should not be using coupons. Branded, loyal customers don’t need another reason to purchase something from your site. You’ve already paid a sum of money to get that customer, why would you then spend even more money to get them back to your site when they have proven loyal to your brand?
Coupons are great for enticing searchers to click on your ad and purchase a product, but don’t let your profits suffer by misuse of a coupon campaign. If you want to offer something to bring up your sales volume, try these methods:
- Offer discounts on specific products. This will keep those bargain hunters from leeching your profits.
- Use coupons to get rid of excess inventory. Instead of clearance items, offer a deep discount using a coupon. The shopper will feel even more satisfied because they’re convinced they’re getting an exclusive, discounted deal.
A coupon campaign may seem like a simple, quick way to aid your marketing strategy, but realize it takes considerable research and planning to be effective for your brand. Consider your audience, their habits, and your brand image (if you’re a high-end, five-star restaurant, do you really want customers coming in with a Groupon voucher?) Looking for more advice on how to increase your profits online and/or use coupons the right way? At Transformation, not only do we love a good bargain, we know how, when, and where to offer them to your customers to increase sales, not hinder them.