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Benefits Of Incorporating Coupon Campaigns For Your Business

22 July 2022 | 0 comments | Posted by Jessica Smith in Shopaholics

Benefits of coupons

Marketing is one entrepreneurial aspect that can make or break a business. You must get your name and product out there, but it is also essential to do so cost-effectively and efficiently. One way to do this is by incorporating coupon campaigns into your marketing strategy.

But what are coupons, and how can they benefit your business? Discounts and coupons are a type of price discrimination, a marketing strategy that involves offering distinct prices to different groups of customers. The idea is that a lower price can entice them to buy a product or service they may have otherwise not purchased.

Can this strategy benefit a business?

Lowering product prices means you limit your profit and possibly take a loss on certain items. However, the increased traffic to your business can result in more sales overall, and if done correctly, a coupon campaign can be a very effective marketing tool. ScroogeCoupons is a business that has utilised this strategy to acquire more leads and conversions.

This company provides discounts and coupons for a variety of businesses. After clicking on the discount value they want, customers get redirected to the business’s web page, where they can purchase the product. This system benefits both the customer and the marketer – the customer gets a lower price, and the business gets increased traffic.

How you can grow your business with coupons

As a business owner or marketer, you must consider coupons to benefit your company. If done correctly, a coupon campaign can help you acquire new customers, boost sales, and improve your business’s bottom line.

Here are various ways coupon campaigns are vital in business marketing strategies.

They open the door for product launch

When offering a new product, it can be hard to get people to buy it. Will they like it? Is it worth the price? Customers are hesitant to take a chance on something they have never encountered. Coupons can help customers feel more comfortable about trying a new product. You can set a minimum price to get some people to try it.

For instance, you can give a coupon for 90% off the first purchase to those who sign up for your newsletter. This way, they are more likely to try your new product. Ensure the coupon is for a significant enough discount that people will use it. Also, limit the time frame for customers to feel a sense of urgency.

You should also make the coupon available to everyone, not just new customers. This way, you can attract current customers also to try the product.

Retain customers

Sometimes, a buyer may leave because they have found a better offer or a competitor is giving them a discount. However, if you have a coupon system, you can keep these customers from leaving.

Use this strategy for recurring billing, such as a subscription service. When about to cancel, send the customer a coupon for a discount on their next cycle. However, you can send it before they even have a chance to think about leaving.

You can also set up a system that automatically sends coupons based on customer behaviour. For example, if a customer hasn’t been active for a while, send them a discount to try and bring them back.

Entice customers to buy more

Have you noticed a product your customer loves most? What prevents them from buying two or three? Is it affordability or convenience? You can use coupons to give your customers a discount on the products they love. This way, they are more likely to buy multiple items, and you can move more inventory.

It is also a great way to increase the average order value. You can do this by giving a discount coupon after they pay or are about to check out their order. A popup is convenient when the customer has not paid yet, so they can input the coupon code to get a discount on their total order.

Get more referrals

Coupons are a great way to encourage customers to refer your business to their friends and family. You can give a discount to customers for every person they refer who makes a purchase. Ensure the discount value is significant enough that people will want to take advantage of it.

An effective way to do this is by offering a discount for the first purchase for a customer referred through a unique code. The referrer can accumulate points for every referral and redeem them for a discount or cash value. But remember that your coupon should not waver your business.

Even if you don’t want to give a discount, you can use coupons to get referrals. For example, you can offer a gift for every referral who makes a purchase. This way, you can still entice customers to refer your business without giving away too much money.

Summary

Coupons are a great way to attract new customers, retain current customers, and increase sales. You can use coupons to get people on board, keep them from leaving, and encourage them to buy more. You can even use coupons to get referrals. Just make sure the coupons you offer are still profitable for your business.

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Recommended reading

If you enjoyed this post and have a little extra time to dive deeper down the rabbit hole, why not check out the following posts about eCommerce.

Tags: Coupons, Promotions, Guest Post

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