Although digital coupons account for less than 1 percent of all coupon distribution, they represent 12 percent of all coupon redemption, according to a recent study Coupon Scoreboard, Valassis. This finding highlights the effectiveness of digital coupons in driving coupon redemption. Digital coupons undeniably redeem at a higher rate than print coupons.
For many consumers—particularly Millennials—digital couponing leads them to increase their engagement.
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Among consumers of all ages, the desire for digital couponing is also pronounced and increasing, with 46 percent saying in that they wish all coupons were digital, up from 37 percent in A clear majority 62 percent said they want coupons sent to their mobile phones for products they normally buy. Brands are also eager to embrace digital couponing because it provides a multitude of benefits. These benefits come with some risk, however.
And sometimes, even without fraud or manipulation, a promotion may simply be more successful than anticipated, which is good from a brand awareness point of view but can reduce profits. The number of consumers without the wherewithal or desire to use digital coupons will continue to shrink, but leaving them out could still be problematic for some brands.
And when doing a cost-benefit analysis of a digital coupon campaign, brands must be aware of the cost of any IT infrastructure of system enhancements necessary to accommodate the problem. Despite these risks, two key steps can permit brands to enjoy the benefits of digital couponing, while eliminating avoidable pitfalls. Your PRM firm will play a vital role in coordinating your digital coupon campaign, using their expertise to:. With these steps, you can reap the advantages of digital coupons while avoiding the risks. And you can avoid falling behind and losing market share as digital couponing becomes even more prevalent and expected.
The pros and cons of offering coupons: a retailer’s dilemma
The Digital Coupon Landscape Although digital coupons account for less than 1 percent of all coupon distribution, they represent 12 percent of all coupon redemption, according to a recent study Coupon Scoreboard, Valassis. Digital coupons: Allow brands to connect with consumers outside of retail locations Have expiration dates that are automatically enforceable Enable almost-instantaneous redemption reporting Reduce the risk of fraud because fraud-prevention guidelines are set and enforced by digital technology e.
You can also drive sales by requiring quick redemption of coupons. For example, if you're a sporting goods store wanting to clear out football club merchandise at the end of the season, you can stipulate that all vouchers must be redeemed within a fortnight. For this reason, coupon websites are particularly good for clearing excess and superseded stock. Unlike many forms of advertising, coupon websites don't require you to pay anything to run your offer and get your name in front of thousands of people.
But remember - you do need to be able to cover the cost of honouring all the coupons sold.
The Business Benefits of Coupons
While many coupon offers run at a financial loss for the business concerned, marketing experts say that it is possible to run a profitable coupon offer if you have the right business. If you have a low or fixed-cost structure, you may be able to increase customer numbers without significantly increasing your costs. For example, if a tour operator already owns a van and pays a driver and guide, costs won't alter dramatically if 4 coupon customers join a half-day tour that already has 8 full-fee passengers.
Another way to turn a profit on a coupon is to link a discount to a spend of a certain value e.
Coupons for Marketing Your Business: Pros, Cons and Tips
Learn more about tips for effective coupon marketing. 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.
Phone scam reported - 'Queensland Business Development Office'. Queensland flood relief. 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.
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. 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.
Advantages & Disadvantages of Coupons | Techno FAQ
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.
No upfront advertising costs Unlike many forms of advertising, coupon websites don't require you to pay anything to run your offer and get your name in front of thousands of people. Profit While many coupon offers run at a financial loss for the business concerned, marketing experts say that it is possible to run a profitable coupon offer if you have the right business. Measurable results Coupon offers are easy to track, so you can count the number of people who redeem a particular offer. Also consider Find out how to create a digital strategy for your business. Previous Who uses coupon websites?