There is nothing new about offering coupons and discounts to your customers. Coupons are as old as advertising itself. But creating a marketing strategy around digital coupons is completely different than one built around traditional mailers. This is a whole new arena, and getting started can seem intimidating.
Simple question: is your current digital coupon strategy increasing revenue? If you’re limiting your coupons with traditional methods, such as listing them on coupon directories, then your team needs to take a more proactive approach.
A well planned, effective digital coupon strategy can create an immediate impact on your revenue, average order value, and customer retention. In this blog, you’ll learn why we recommend your business to work with an experienced partner on a digital coupon strategy
Let’s dive in.
The Right Partner Goes a Long Way
While discounts are proven to drive sales and make consumers feel even better about their purchase, not all brands, products, and customers are ideal for discounts. Coupons can harm your brand’s customer perceived value or public image. For example, coupons can be both ineffective and counterproductive when it comes to luxury items. Vogue Business found that when luxury items were discounted, they were seen as inferior, out-of-season, or less popular, immediately making the luxury brand less desirable.
For instance, if you’re selling Lamborghinis, this guide may not be for you because your target audience isn’t spending time hunting for coupons. For other retailers, however, it’s essential to incorporate the right pricing strategies, at the right time, for the right customers… but how do you know? Work with a partner who has a proven track record with coupon strategy.
To optimize new ways to reach consumers and to manage the risks and costs associated with the settlement of all types of coupons — paper, digital, and universal digital coupons — brands and retailers should seek to partner with an experienced, true one-stop shop. Outsourcing your coupon campaign to a proven partner comes with many benefits:
- Fast, accurate, simplified payment and reconciliation of valid discounts paid to consumers
- Efficient, automated, and accurate invoicing and settlement of all promotion types, consolidated into a fully transparent, consistent data set
- Powerful point-of-sale (POS) audit that quickly identifies and helps resolve exceptions
Robust Data & Analytics
- Store-level data targeting consumers and oversight of store controls
- 24/7 access to redemption analytics through a self-service portal
- Expert representatives supporting powerful portals, dashboards and scorecards
- Granular offer intelligence to uncover opportunities and identify risks
Advanced Risk Management
- POS offer validation data set to aid retailers in stopping counterfeits before they’re accepted
- A proprietary, enhanced audit that combines with POS data to support loss prevention
Coupon Revolution: Herein Lies A Universal Opportunity
Research shows that approximately half of shoppers are cautiously optimistic about the year ahead. They plan to spend — they’ll just be more prudent about what they purchase. And they’ll be looking for deals. With inflation rates higher than ever, customers are looking to cut down on costs, often leading them to purchase cheaper alternatives. This is where an effective and strategic digital coupon strategy comes into play. Implementing an effective digital coupon strategy can keep your deal-hunting customers purchasing the items they want most rather than searching for a cheaper alternative.
Digital coupons can be a great marketing feature for any sized business, as it helps draw in new customers and reward existing ones.
Can companies without the knowledge, experience, and processes of coupon settlement and reimbursement seamlessly handle the strain of innovation and complexity of coupon redemption? Yes, we have seen it done successfully. But those success stories are rare. More often than not, the coupon campaign falls short and pulls too much time, with too few results and too many resources from other vital business operations.
A reliable, streamlined, and visible coupon redemption process is a core value — and primary business function — of successful brands and retailers. This is why finding the right balance and right partner to create and maintain a coupon strategy is essential to helping you elevate your business, bring in new customers, and entice existing ones.
Bringing it all together
You can employ many strategies when setting up a coupon strategy, but you might have to test several methods before finding one that works for you. No matter what coupon marketing strategy you decide on, our team of experts can help you gain visibility into market and customer data and effectively mine it to develop targeted offers that spark action and increases revenue. Speak with one of our team members today!