Coupons are a tried and true consumer promotion tool, but that doesn’t mean you can simply offer consumers any coupon and expect to see a dramatic increase in sales. Studies have proven that coupons work, but there is a lot of planning involved; you must really understand your target market and your objectives should be defined. There are various coupon redemption tactics that can be utilized to increase the chances of your coupon being used towards a purchase. In this blog, we’ll discuss various strategies to increase coupon redemption rates.
- First and foremost is the offer. When creating the offer, ensure that it is relevant and provides value to your target audience. Consumers are much more likely to redeem a coupon if the coupon is perceived of being high value. A coupon’s value is ultimately determined by the consumer, so be sure that the offer is relevant or that it at least compliments the purchase of a product, such as free shipping. It’s also important to ensure that the offer is clear and concise for the consumer.
- Ask for an email address in return for a coupon. When possible, always generate a lead after successfully engaging a visitor. With the average shopping cart abandonment rate at about 75%, you should assume that more than half of visitors who redeem a coupon will still leave your site before making a purchase. Acquiring an email address ensures that you can follow up with the visitor and gives you another opportunity to make the sale.
- Coupons work best to drive sales when the coupon is available in the right place, at the right time. For example, an ecommerce store displays a popup window with a coupon code that is triggered when a visitor abandons a shopping cart. An additional $10 off could be the push a visitor needs to convert to a customer.
- Create a sense of urgency. People are more likely to action and come to a purchase decision when an offer is limited in time or in quantity. You can create a sense of urgency by offering a coupon for a very short period of time, or by offering a coupon limited to the first 100 customers. Ensure that the messaging is clear and provide strong calls to action to stimulate immediate conversion and boost coupon redemption rates.
- Customize your coupons. Make the visitor feel like you’re offering them an exclusive deal by giving them incentives tailored just for them. One way to do this is by creating customized coupons for each type of visitor entering your site. Using site statistics, you can target visitors based on past visits, referrers, and even geolocation.
- Coupons should be persistent, relevant, and actionable. If a visitor dismisses a coupon, it is often because he or she does not see its immediate value. But as visitors continue to navigate your site and browse its content, their appreciation of what you’re offering increases, and this translates into a significant increase in the likelihood of a conversion. When visitors close a coupon pop up without redeeming the coupon, display a teaser with a clear call to action that follows them across all pages that are relevant to the coupon’s offer. This will allow them to redeem the coupon the minute they realize its value.
- Don’t forget to follow up! When a visitor to your online store abandons a cart, send them a follow up email including a coupon within 24 hours to encourage the conversion. These emails are a highly successful way to recover lost purchases. Nearly half of all recovery emails are opened (44% open rate) and more than 10% of them are clicked (11.6% click-through rate). Of those clicked, almost a third (29.9%) lead to a recovered purchase back at the site.
Try using these coupon redemption tactics next time you’re thinking about offering a coupon. Studies have shown that coupons are very effective at bringing in new customers, boosting last minute sales in ecommerce, increasing return on investments, and increasing the demand for certain products.
Want to know more about Consumer Promotions? What are Mail In Rebates? You can read about Online Coupons, Promotion Tactics, and Digital Coupon Redemption Rates?
Resources:
https://www.thebalance.com/creating-coupon-promotions-2890270
http://blog.mobilozophy.com/5-strategies-to-increase-mobile-coupon-redemption
http://streetfightmag.com/2015/02/19/7-strategies-for-improving-mobile-coupon-redemption-rates/
