What is digital coupons?
Digital coupons are electronic versions of the traditional paper coupons that have been used for decades to drive sales and promote products. Unlike paper coupons, which must be presented at the time of purchase, digital coupons can be loaded onto a customer's loyalty card or smartphone, and redeemed when the customer makes a purchase. Digital coupons have a number of advantages over traditional paper coupons, including the ability to track redemption rates and target specific customers with personalized offers. In addition, digital coupons are less likely to be lost or stolen, and they can't be counterfeited.
The Ultimate Guide to a Successful Digital Coupons Marketing Strategy
What are digital coupons?
Most businesses use coupons to offer savings or other offers to encourage consumers to buy their goods or services. With the advent of technology, even coupons have now gone digital. Digital coupons are promo codes, discounts and offers by a business to encourage customers to shop online. There are various types of digital coupons which include-
- Downloadable coupons- This type of digital coupon can be accessed by customers from many locations. They can download these coupons from the website and store them on their mobile or email to be used from anywhere.
- Mobile coupons- Many businesses and ecommerce sites that have tied up with mobile apps offer these coupons, which can be accessed only from the mobiles to drive sales via this medium.
- Coupon codes- Coupon codes are a string of alphabets, numbers or combinations thereof. This type of digital coupon is faster than downloading a coupon. It is also easier for the customer to apply this type of discount while shopping.
- Automatic discounts- Many businesses nowadays are offering discounts that are applied directly at the checkout. The customers don't have to type in a discount code or apply the discount coupon. Many businesses are able to convince customers to shop online by offering automatic discounts. It is also a great way to prevent customers from abandoning their carts.
Benefits of digital coupons?
As per data, digital coupons tend to be 35% better at bringing in new customers than printed coupons. Also
online digital coupons can be updated more easily than printed ones and are better at customer engagement.
- Digital coupons are also cheaper to make and distribute compared to printed coupons.
- Digital coupons are also better for creating and elevating brand awareness due to the ease of making and distributing them. They have more reach compared to printed coupons.
- Digital coupons also help businesses collect information about customers like their mobile number or email address which can help them create targeted email marketing, social media, and newsletter campaigns. Customers who access the business portal through their mobiles are also a good target as they can be reached through messages, social media, emails, or apps.
- Businesses can track digital coupons' progress and return on investment with online metrics easily.
- Coupons offered by businesses bring in buyers, and they can become recurring customers if the deals are good enough. If the customer needs to return the goods, the businesses are able to reimburse them at a faster rate.
- Many businesses are able to expand their customer base as they connect with a diverse base via the different online channels.
- Technology ensures that digital coupons are used only once, reducing the chances of fraud or using them again.
- Digital coupons are also a great way for businesses to entice customers to buy slow-moving inventory.
There is a lot of competition out there, and it can be difficult to stand out from the crowd
By following our tips, you'll be able to create digital coupons that will help you attract new customers and boost your sales
How do digital coupons work?
Nowadays, more businesses are opting for digital coupons, as it is a good option to curb coupon fraud. Digital coupons are easy to use but if you are still not clear on how to use them, here is a guide-
- Track digital coupons- If you want to use to the digital coupons, check if the business you want to shop with offers digital coupons. If they have digital coupons, they will list them on their website or app. There are many third party sites that also offer digital coupons like coupon codes or gift cards that can be redeemed while shopping.
- Sign up for an account- If the business does offer online coupons, then you need to sign up and create an account to access the coupons. Once you access the coupon, you can link it to your account.
- Load coupons- You can also load the coupons into your account for future use. Just click on the coupons and add them to your account. The business can also separate the online coupons into manufacturer's coupons and store coupons. If you get an offer with a store digital coupon you can also combine that with manufacturer coupons for additional savings.
- Redeem coupons- Once you have stacked the coupons in your account, you can shop and apply them as required at checkout. Depending on the scheme run by the business, you can scan a loyalty card or put in a phone number to access the savings.
How do I create a digital coupon?
The primary goal of a business offering digital coupons to customers is to draw them in more often and get them to buy their products regularly. For instance, if you have a food service establishment and you want to offer incentives for customers to visit often and purchase more, and also offer them rewards for their loyalty. But at the same time, it is difficult to change the point of sale system. Offering digital coupons is a good way to give a small discount or reward to a customer. There are many websites which can help you create a digital coupon for your business. Here is how you can create food digital coupons to offer to customers-
- Select the website you think can help you create the best digital coupons for your business. Create an account so that you can access the tools and create the coupon.
- Once you select the website, click on the 'create coupon' icon.
- Upload the images you have selected for design on Google and Apple platforms. Select the images as per the dimensions of the coupons, but if that is not possible, you can always crop them. Most sites will select the colors automatically from the hero image. You can also select the color from the menu as per your branding color palette.
- Open the template info and fill in details of the discount, like BOGO or 20% off.
- Fill in the information you want on the digital coupon. See how the template looks on Google Design and Apple Design.
- Now choose the barcode format, if your POS has a tool to scan barcodes and apply a coupon discount. If not, then skip the step.
- Save your design. You can also make changes like changing the color once the coupon has been redeemed. You can also enable location features.
- Add the way you want the digital coupon to be distributed and enrollment assets, and you can start promoting the digital coupon.
Digital coupons as an effective strategy
Using digital coupons can be an effective strategy to draw in more customers, but before you opt for a coupon campaign, you need to have in mind what you want to accomplish. Here is a list of reasons you can opt for a coupon campaign-
- To enter new markets by offering incentives to get new customers by offering referral discounts.
- Improve sales in an off peak season or for slow-moving products.
- Offering discounts as an apology if the customer complaints.
- Getting information about the customer like phone number and email address as a way to build the customer database and incentivize subscriptions and opting for loyalty program.
- Getting feedback from customers about potential issues and fixing them.
- Sending limited time offers through a weekly ad for re-engaging dormant customers
- Offering discounts like free shipping or gift cards for shopping above certain amounts.
- Offering discounts on national holidays, when customers tend to shop more.
- Offering discounts to purchase items left in the cart or offering general digital coupon to download the app and shop from there.
You need to make sure your digital coupons are eye-catching and easy to use
Use this guide to create a successful digital coupons marketing strategy
How to personalize your digital coupons?
Once you have identified the reason for creating a digital coupon campaign and segmented your customer base, you can move on to create targeted marketing campaigns. But with an increasing number of customers not liking the use of their personal information, businesses need to be careful while using personalized campaigns.
- The moot point is to create a balance between the loss' of privacy and the benefits offered to the consumer. As per a study, 43% of the customers said they were willing to give personal information to save money through personalized discounts.
- You can know your audience by offering incentives for consent to access their data. The crucial point of the personalization process is to get proper customer data.
- Set questions that provide answer to the information you need to start a coupon personalization campaign, like family status, occupation, earnings, location, age, and gender, among others.
- Once you have the data in place, you can integrate the voucher management software with the data to create a personalized coupon campaign like a 20% off coupon for clothing for customers in a certain location.
- You can use coupon aggregation platforms like Fullfork to ensure that your coupon campaign is visible even in locations where it is hard to access. Websites like Fullfork Features digital coupons based on location and also preference.
- Businesses can also send personalized campaigns to the customers via email so that they can interact with the brand on a one-on-one basis.
How to calculate and structure your digital coupon discounts?
The most important question in creating a digital coupon campaign is to identify how much of a discount to offer. Here are some tips to calculate and structure your discount strategy-
- A good strategy is to offer a lower discount and analyze the response. If it doesn't not meet the target goals, you can increase the amount of discount. With this trial method you can eventually find the minimum discount level which will cause a rise in purchase rates to meet target goals. Remember not to go below margins, unless you are in a hurry to sell slow-moving stock.
- One of the ways to decide on the how to calculate and structure your discounts is to see kinds of discounts being offered by competitors.
- You can also ask potential customers via user group researches or studies about the kind of discounts they look forward to.
- Here are some incentives you can offer to your customers-
- Free product or service voucher like a free drink with a burger on a particular.
- Free upgrade like getting a king sized coffee at the price of a medium sized one or getting double serving of ice cream for price of one.
- Free delivery or shipping on orders above a particular amount
- Particular amount or percent discount like a $5 discount on orders above $30 or a 10% discount on all orders above $200.
- BOGO promotion where you get two items for the price of one. For instance, if you have a mcdonald digital coupon for BOGO, you can get 2 burgers for the price of one.
How to develop a successful digital coupon marketing strategy?
As discussed, implementing a digital coupon marketing strategy can reap a business many benefits. As per studies, around 90% of customers will buy and use coupons offered by a business. If you are still wondering what goes to create a successful coupon campaign, here are steps necessary to develop a successful digital coupon marketing strategy-
- Understand the customers- Everybody loves to save some money while shopping. Coupons and discounts help customers enjoy shopping and also save money. Offering incentives will get you loyal customers and also get you new customers.
- Choosing the right coupon- You need to understand the difference between traditional and digital coupons as it will decide the method of marketing. In the new normal, most people will opt for digital coupons, therefore the business must also take the market scene into account before deciding the coupon marketing strategy.
- Does it fit- Is your business model right for using a coupon-based strategy? Does it match your image in the market? These are some of the questions you should ask. You can also analyze relevant data like product sales, rate of shopping cart being abandoned, loyal customers' and shopping patterns, and sales during peak and off seasons.
- Determine channels of marketing- Nowadays, marketing for coupons is not limited to leaflets and brochures. There are also channels like email marketing, social media, and newspapers and magazines. Hence, you need to consider which medium works best for you to run your campaign.
- Set goals- You need to decide what you are trying to achieve through a coupon-based marketing decision, like increasing sales, boosting your conversion rates, gathering consumers data, encourage more purchasing, reducing instances of shopping cart abandonment, and clear out old stock.
- Plan your deals- Work out the discounts you want to offer, like free shipping or gift cards or giveaways or referrals. See which strategy works best for your business and if the finances are enough to support the option you have selected.
- Customer feedback- Take feedback from customers as it can improve your marketing strategy by using reviews, surveys, and feedbacks. Ask customers about their experience and what improvements can be made. You can give out coupons as rewards.
- Monitor efforts- Track how the campaign is performing and which part has provided a boost to your sales. Match the actual costs to the planned budget and see if the profits match the planned result and how much of a boost the campaign has provided to the sales.
Why should you invest in digital coupon marketing?
Digital coupon marketing is an important component of the overall marketing strategy. Here are some points which you should consider for investing in digital coupon marketing-
- Large audience reach- Once you have a strong, aesthetic coupon for the business, you can start marketing and add it to the website for customers to come and access it and reap the financial benefits. By sharing it on social media, you reach an even wider customer reach. Digital coupons can let customers access deals that they wouldn't have accessed in stores.
- Less investment- Unlike printed coupons, digital coupons are a greener option and also cost less to produce as there is no printing involved. There is also no need for physical distribution and anyone can go to the website and download digital coupons. A business can invest in a single template and use it for a long period of time with minor adjustments.
- Flexible- Digital coupon marketing can be adapted as per the needs of the campaign and the coupons can be edited or reworked even at the last minute. It provides more flexibility than physical coupons.
- Customer loyalty- Coupon-based marketing can generate two types of customer loyalty. One, where the customers keep coming back to buy more and one where the customer publicises and defends your brand to the public.
Are you worried that your digital coupons won't be effective?
In this guide, we'll show you how to create an effective digital coupons marketing strategy