More than anything else, consumers love a good deal. Even if they don’t plan of spending a dollar on your online store, they will gladly charge it on their credit card if they see that they’re getting a good deal. That is the power of consumerism and this thing marketers now call coupon marketing. It’s giving discounts to your consumers in terms of digital coupons, which they either have to search for or earn.
Even in Singapore, where couponing isn’t really as big of a strategy as it is in the United States, consumers and retailers are beginning to see the advantages of this type of marketing. The premise is very simple: consumers will be able to save money. That alone should make retailers want to use this marketing strategy to get more revenue for their businesses.
But online, consumers are smarter when it comes to capitalizing on the deals and coupons they collect. They use these coupons in conjunction with other promos. They use their online shopping rewards credit cards to get more out of a purchase. Such savviness is not lost on marketers, and they know they are actually losing a bit of revenue when they use coupon marketing.
More and More Consumers Are Using Coupons
Consumers love the feeling of getting a good deal. It’s reassuring to know you didn’t spend as much on a purchase. Even a small discount will be welcome. In fact, studies showed that when consumers online can use coupons for their purchases, more than 90% of them use the coupons.
This led to a projection that by 2022, the digital coupon redemption will surpass the $90-billion mark. The fact is pushing marketers and companies to make it easier for consumers to redeem the codes and coupons. With the development in web interface and app technology, consumers should have an easier time redeeming coupons now.
Giving consumers an excellent experience when they shop online is one of the most important factors when redeeming coupons. It boosts your brand and makes you a trustworthy retailer. The consumers will soon become loyal customers.
Are you still not convinced that coupon marketing is the way to go? Retailers who use coupons to give their customers incentives usually see repeat purchases. Do you remember how costly it is to attract new customers and retain old ones? Discounts will bring revenue to your business while also attracting customers.
If you are using email marketing to attract new clients, you are in for a treat. Do you know that including coupons in your emails will increase revenues by as much as 48%? Consumers will want to open emails as long as they can find coupon codes in them. And even if they have no plans to buy such items, the presence of the coupons will make them want to check it out at least.
Types of Promotions to Use Online
There are six most common types of online promotions that e-commerce websites can use coupons for. The first one is bundled discounts. This is when you sell two or three more items for the price of one or two. It will increase your average order value. Plus, you will get consumers to try out your other products, too. You will not slash down the price of the products heavily. Rather, you’ll give them a chance to try another product at a bundled price.
The second one has become more popular because of the pandemic. A prepayment discount applies mostly to hotel and flight bookings. You will pay for something you will use in the future. Because you paid for it earlier, you will receive a discounted price. Today, many businesses survive on prepaid discounts.
Volume discounts remain to be a popular strategy, too. The more you buy, the larger the discount is. Grocery stores use this very effectively. If you buy a pack of luncheon meat in bulk, you can get one or two cans for free. That’s how this goes.
Of course, seasonal discounts should never not be a part of your coupon strategy. The holiday season remains to be the most popular season for sales. Start sending codes and coupons as early as November so your customers can plan their shopping early.
There’s no denying that customers love free shipping. Whether they’re buying something for a dollar or a hundred bucks, they hate to have to pay for shipping. Offer free shipping when you can. In fact, you don’t need to make this a part of your major discount deals. Offer free shipping when their purchases reach a certain amount such as S$50.
If you have a huge inventory that wants to start giving away, why don’t you turn it into a buy one, get one deal? Customers love the idea of getting two products for the price of one or getting to try a new product when they bought their usual. Your business will receive more revenue this way. Plus, you’ll get that extra inventory off your hands.
There’s no reason why you shouldn’t think about incentivizing your customers. They love being appreciated by the brands that they support. On top of that, your brand will receive more attention.