6 Tips for Coupon Marketing Strategies in Holidays
The cost of holiday decorations, food, and gifts can add up fast and significantly damage an average person’s budget. In fact, according to the National Retail Federation (NRF), despite the ongoing coronavirus, consumers plan to spend an average of $997.79 on gifts and holiday items.
To keep the costs down, many of them will take advantage of coupons.
Studies have shown that customers tend to spend 25% more than normal when they have a coupon. In addition, nearly 50% of customers make a purchase sooner and more than 35% of them are likely to purchase more items with a coupon.
As more businesses turn to coupons to increase their sales, it’s time to explore some coupon marketing strategies and prepare for the holiday season.
6 Tips for Coupon Marketing Strategies
Experiment With Different Types of Deals You Offer
The discounts you offer will largely depend on the financial effect they have on your business. Will they help you make more sales? Or will you end up losing money? Offering 15% off the first purchase sounds great, but you need to think about what effect it has on your bottom line.
Another thing to consider before launching a discount is your audience and their expectations.
- Free gift with purchase
- An opportunity to win a contest/giveaway
- Share a referral
- Free shipping
- Abandoned cart savings
Customer preferences are likely to change over time, so be sure to experiment with different types of deals.
Use Limited-time Offers to Maximize Sales
A limited-time offer is any kind of deal or discount a buyer can get if they make a purchase from you during a certain time period. In fact, limited-time offers are one of the most widely used types of deals over the holidays. For instance, you can include an expiration date on your holiday coupon for 15% off, so customers know exactly how much time they have to act.
To make sure you offer stands out, conduct research to see what types of offers your competitors have, and then think about how you can take yours a step further. For instance, if your competition offers first-time customers a 15% discount, offer the same but also add free shipping.
Use Various Distribution Channels
Did you know that sending coupons via email can result in a nearly 50% increase in revenue? Email is a big part of how customers receive and consume coupons. Research has shown that more than 90% of subscribers are likely to use coupons they receive via email and about 40% share email deals with their friends.
However, you need to be careful and use coupons wisely. Coupons are meant to be valuable, which means they can’t be handed around like leaflets. That’s why you should not only offer them less frequently but also remind users when the code’s expiration date is approaching. Using an email automation tool to send an automated reminder about the coupon’s expiration time is a great tactic that will help you make the most out of your incentives.
Also, people don’t always open emails immediately, so you might want to consider experimenting with other distribution channels.
One great alternative is text messaging. The open rate for SMS is higher than emails and more than 50% of customers prefer their coupons to be delivered via mobile. Not to mention, 70% of eCommerce is expected to take place on mobile devices by next year, so including mobile in your coupon strategy is crucial.
Don’t forget to leverage social media. 40% of consumers follow brands on social media in order to learn about discounts and promotions, and nearly 75% turn to social media before making a purchase decision.
Include Discounts in Your Lead Forms
Lead magnets, just as their name suggests, are used to attract new leads. Because they’re quite flexible, lead magnets allow you to offer a number of different incentives based on customer preferences and the type of your business.
For instance, in exchange for their email address, subscribers can get access to a webinar, an eBook, or a discount offer. And you know what? It works. More than 75% of customers are willing to share their email addresses if it means getting a special offer.
But how do you find the right lead magnet? Do a little research to find out what incentives are important to your target customers. For instance, eCommerce stats say that nearly 50% of shoppers say that free shipping is more important than saving on everyday products.
Bear in mind that customers are always on the lookout for fresh deals, so make sure to occasionally update your coupon offers.
Pay Attention to Your Visuals
Imagine sending out Christmas coupon codes as plain text – no Santa, snowflakes, or the traditional Christmas colors. How do you think that will go?
Customers appreciate eye-catching visuals, so make sure to add some holiday flair to the design and content, such as greetings and headlines to be more seasonal. After all, your goal is to make customers feel excited about your offer, right?
Combine beautiful visuals with relevant information and personalization. More than 75% of customers say they appreciate it when brands include links to products based on their previous purchases.
For instance, if a customer used the coupon, send them a thank you email that includes links to similar items. If, on the other hand, a customer didn’t use the coupon, send an email with a special offer they can use in the future.
Set Up a Reward Program
Want to boost customer loyalty? Create a reward program. Studies have shown that 75% of consumers favor companies that offer rewards.
The holiday season is the best time to introduce your loyalty program. Promoting a holiday rewards program is a great way to promote new services, encourage new registrations, and offer exclusive saving opportunities. This will help you collect customer data and boost your holiday sales big time.
Personalization is another key factor you should pay attention to. Take your segmentation strategy one step forward and create more sophisticated customer profiles that will help you deliver relevant product recommendations.
Using a customer data platform such as Hightouch is a fantastic way of organizing these profiles effectively.
Price has always been a key factor determining where people spend their money. Promotions and discount coupons can be a great way to attract attention to your brand and help you make the most of the holiday season.
Take some time to really get to know your target audience and their preferences. From there, you’ll be able to create an effective coupon strategy that converts more customers.