20 tips on coupon marketing

Shopping with coupons has always been popular - everyone wants to get the best price! Take advantage of this phenomenon and offer coupons and discount vouchers on your website. It will give you the ability to generate repeat traffic and increase sales.

In the world of e-commerce, coupons are one of the most efficient marketing tools used to generate a response or motivate prospective and current customers to make a purchase. People always tend to choose a website where they can get a bargain.

If you are not offering coupons, you are definitely leaving money on the table! Just go to any search engine, type in the product or service you are selling and add the keyword "coupon." You will be surprised to see thousands of tempting discount vouchers and promotional codes from your online competitors. 

What types of e-coupons can you offer? 

Online coupons, or e-coupons, are a type of Internet discount. They offer a percentage or dollar amount off the regular price of a specific product or total purchase. Some coupon codes may offer a free shipping or additional free item with a purchase. 

Aside from the financial benefits, online coupons give users the feeling of gaining a bargain and being treated as a special customer. It is an important part of any shopping experience.

There are two types of online coupons you can offer your visitors:

• Embedded coupons. It is a coupon with a link. When you click the "Redeem Coupon" button, you will be redirected to the online store. There is no need to enter a coupon code – you will get the discount automatically. 
• Code coupons. They are also called a promo code, promotion code, or discount code. You will need to enter a code during the checkout process to get a specific discount or free shipping.  

Coupon marketing tips

Coupons can be a powerful marketing tool - if they are used right. There are 15 useful tips to create a successful coupon marketing strategy:

1. The most important question that most merchants ask is about the amount of the discount. How much to offer? The answer depends on the average order on your website. Basically, if the transactions are less than $100, merchants tend to offer a flat rate discount in dollars, for example $10 off a purchase of $50 or more. If your average order is more than $100, it makes sense to offer a percentage discount, for example 10% off a purchase of $100 or more.

2. The cost to attract a new customer is higher than keeping an existing customer. Plus, new customers usually make more purchases than repeat customers. That is why it’s a good idea to offer them greater discounts. While repeat customers may expect online coupons offering 10% off their order, new buyers might enjoy a 15% discount for their first purchase.

3. Set a minimum spending requirement that is a bit higher than your average transaction size. It will help you encourage the customers to add a couple of extra items to their shopping cart. For example, if you average order is about $50, you can offer a 10% off coupon for purchases of $60 or more.

4. Avoid online coupons that are valid only for a specific product or product range. In this case your customers will pay less attention to other products on your website.

5. Another way to boost sales is to offer free-shipping coupons. They will be particularly useful for websites that charge more than $6 for shipping.

6. Do not go over your budget. If your margins are already tight, you may raise your prices before offering a discount. Of course you want to attract more customers, but your aim is to earn money, right?

7. Create short and simple coupon codes because many consumers tend to write them down on paper before using. Coupon codes like DPng755H91fD leave room for error. Use terms like SUMMERSALE or SAVE10. They are easy to remember, so you can boost their viral potential. 

8. Some people need call to action in order to make a purchase. Set a coupon expiration date to create some urgency, enticing the visitor to redeem the coupon more quickly and then come back for new coupons. 

9. Submit your coupons for listing on coupon websites and directories. Nowadays there are thousands of coupon websites where you can share information with other members. Some of them focus on your sector, others contain offers from all types of merchants. Google “coupon codes”, “online coupons”, etc. to find sites offering online coupon listings.

10. Partner with non-competing businesses to place your coupon codes on their websites. For example, if you are selling athletic apparel, you can search for health club or gym websites and offer them to swap buttons. 

11. Don’t forget to change coupons and promotional offers to encourage repeat visits. People will come back to your website again and again if they know they can find new good deals there.

12. Ask people if they want to be notified by e-mail when you update the coupons on your website. It will give you an excellent opportunity to build a loyal customer base and present them with new information about your business. Typically, many people will give you their email address in order to gain a coupon code.

13. Do you want to have a good viral marketing tool? If you notify your customers about new coupons via e-mail, add “send this coupon to a friend” button. It will increase traffic to your web pages and products.

14. Test your coupons to make sure the process works. The worst thing you can do is to “forget” about coupon codes during the checkout process. First time customers will not return to your website if they feel that you deceived them.

15. Create coupons that are simple to use. User-friendly offers lead to higher conversion rates. Make sure that the discount is seen as a line item in the shopping cart before the customer completes the transaction. This way the consumer will know that the discount has been applied.

Discount coupons have long been used by companies to market their products and services. In 1895, C. W. Post, the cereal manufacturer, offered the first coupon ever issued in the U.S. Other companies followed the example, and today, consumers have saved over $4 billion by using coupons.

In today’s tough economical times, the importance of coupons has significantly increased. According to a marketing company Valassis, 88% of surveyed across the US in November 2008 said it was more important to save money now than in the previous year. 

People value any the opportunity to fatten their savings. The availability of online coupons can really make or break a sale. So don’t lose the opportunity to attract more clicks and have a better conversion rate by offering discounts online!