Why coupons work

Retailer Michaels uses downloadable coupons throughout the customer journey which are integrated into their app and website.

Ecommerce platforms that have integrated mobile applications into their operations offer mobile-only coupons to drive further sales in this channel. The growing popularity of ecommerce has greatly contributed to the rise of promo codes.

This form of discount is faster than downloading a coupon and is easier for the customer to complete at the point of sale.

These codes consist of a combination of brand-unique numbers and letters and are often applied during the checkout process. They can be one-time use, personalized for an individual, or a generic code that can be shared. These work well for ecommerce companies because online retailers are enticing customers with an offer for a discount, therefore reducing shopping cart abandonment and churn rate. When used wisely, coupons can add a considerable amount of top-line revenue with just a small allocation of marketing dollars.

A cost, but with big returns. Here are some of the biggest potential benefits of incorporating coupon campaigns into your marketing efforts. The best way to get rid of these items? Offer a steeper discount so you can at least break even.

However, take into consideration your gross profit. Many ecommerce shops offer a small discount if you sign up for their email list. Visitors to Model Train Stuff can receive exclusive offers and information on products by signing up to their email newsletter list. Adding spending thresholds is an excellent way to boost average order values and use automatic coupons during promotion periods. This gives the consumer a reason to shop more on your site and increases the chances of them adding more to their order.

Using an automatically applied coupon or discount here is a great reward for your shopper. Coupons can also be used as a channel tester. This can give you some great insights into where you should focus your marketing dollars.

Most referral programs essentially run on coupons and discounts. The existing customer introduces a new prospect to the store with a coupon for them to use.

Once the new prospect, now a customer, places an order, the original customer receives a discount or reward coupon that can be applied to their next order. This kind of time restraint will actually push a lot of customers into checking out.

Look closer! Coupons help marketers grow market share, increase sales volume, sell faster, cultivate loyal customers, and drown out competitor advertising. Offer a discount on their next purchase, and you will be at the top of their shopping list. With a time-sensitive discount offer a coupon with an approaching expiration date , consumers will buy more product, faster. They recognize the value and are more willing to use your product. Far from it—most research shows that the number of Americans who use coupons and other offers regularly tops 90 percent.

In the midst of our digital age, the chance to save money still appeals to consumers, even when the method to do so is a paper coupon. The question that must then be asked: Why do customers still use coupons? Understanding the psychology of coupons can greatly help in developing and maintaining a successful marketing strategy for your business.

The psychology of coupons plays into a fundamental truth about consumers: They love to save money. Consider the department store that lists everything at retail price but then has a sale sign on every rack.

And often, that value results in them buying more: One survey discovered that a percentage-off-the-total deal results in 28 percent of shoppers spending more money with that business.

Using coupons brings joy. Moreover, 80 percent of shoppers who use coupons say they feel smarter , which goes back to our previous point of realizing value. Findings such as these confirm why coupons are so popular no matter who the consumer is—indeed, affluent shoppers are more likely to use coupons. Coupon offers are easy to track, so you can count the number of people who redeem a particular offer.

Your financial systems should then allow you to calculate how much money each coupon customer has spent, including the value of the coupon and any extra purchases. In the longer term, a good customer database should let you track how many coupon customers visit your business again. General enquiries: 13 QGOV 13 74 Home Running a business Marketing and sales Marketing and promotion Online marketing Using coupon websites to market your business Benefits of coupon websites for business. Online marketing.

Using social media to market your business: the basics Using Facebook to market your business Using Twitter to market your business Using YouTube to market your business Using location-based marketing to promote your business Using a blog to market your business Using coupon websites to market your business How coupon websites work Who uses coupon websites?

Benefits of coupon websites for business Tips for successful marketing through coupon websites How your business can avoid the pitfalls of coupon websites Getting your business onto a coupon website Managing online customer reviews Optimising your website for mobile devices Using mobile apps to build your business Using online photo-sharing services to market your business Creating a website.

Benefits of coupon websites for business Targeted local advertising Coupon websites have customer databases that can be sorted according to customer location. Mass exposure Coupon offers are sent to thousands of subscribers, and are visible to everybody who visits a coupon website. Word-of-mouth recommendations Coupon websites are sometimes known as 'social coupon websites' because of the role that customers play in spreading information about good deals.

Increased brand awareness With its advertising reach and word-of-mouth publicity, a coupon promotion can dramatically increase awareness of your business, both locally and elsewhere. New customers Coupon marketing is generally very effective at attracting new customers, who will certainly boost your sales though not necessarily your profits. Up-sell and cross-sell A carefully planned coupon offer should incorporate opportunities for you to up-sell offer a higher-priced product in the same category or cross-sell offer related products or services.

Speedy promotion Coupon websites operate quickly compared to traditional marketing. Speedy sales Subscribers can purchase a coupon as soon as they read about your offer, and may visit your business soon afterwards.