Over 90 percent of consumers use coupons in some way and by 2022, digital coupon redemptions are predicted to total over $90 billion. These statistics are impressive to say the least – for small businesses, they’re especially significant in the current economy.
According to the Wall Street Journal, the COVID-19 pandemic could result in over five million lost jobs, a monetary value of over $1.5 trillion in the U.S. Additionally, an estimated 15,000 retail stores are expected to close their doors as a result of the virus.
With so many Americans out of jobs and financially crippled by the changing economy, saving money becomes more important than ever for the vast majority of consumers. A coupon marketing campaign implemented by your small business may not only improve your business’ success during hard times, but it could also provide value to your customers by helping them recover from the economic effects of the pandemic.
What Is Coupon Marketing?
Coupon marketing is the use of coupons, discounts, and promotions to leverage shoppers’ interest in saving money on purchases. With so many consumers doing everything they can to save money, this marketing strategy could be a heavy hitter for your small business.
Advantages of Coupon Marketing for Small Businesses
Coupon marketing can be a highly effective strategy for small businesses. Below are some of the primary benefits of using coupons in your marketing strategy.
- Collecting consumer data: Coupons attached to lead forms can encourage new shoppers to provide email addresses in exchange for a discount. Receiving offers and coupons is the top reason consumers subscribe to email lists.
- Boosting brand loyalty: Businesses who use coupons in rewards programs are more likely to maintain their customer base. In fact, 84 percent say they’re more likely to be loyal to brands who offer reward programs.
- Securing sales: Some studies estimate that shopping cart abandonment is as high as 80 percent, but a strategically timed discount could bring customers back to their carts and encourage them to complete the transaction.
Of course, it’s important to remember that for businesses to see these benefits from a coupon marketing campaign, a well-designed coupon is key.
5 Ways to Leverage Coupon Marketing for Increased Sales
1. Incentivized Lead Forms
Data collection is an important part of developing successful marketing campaigns. To encourage data sharing and entice potential customers to provide their email address or other contact information, offer an incentive within the lead form that acts as a lead magnet.
Offering a discount in exchange for data sharing is a great way to collect valuable data and potentially engage new customers.
2. Limited-Time Deals and Flash Sales
Creating a sense of urgency is a simple tactic that plays on customer psychology to generate higher conversion rates. In fact, some studies have found that the shorter the time limit, the greater the sense of urgency and the higher the purchase intention.
3. Customized Offers
Taking a percentage off the cart total at checkout isn’t the only way to entice customers. There are plenty of options when it comes to offering deals and discounts:
- BOGO deals
- Free shipping
- Punch cards
- Giveaways, contests, and raffles
- Rewards for referring friends
- Abandoned cart discounts
- Free gift or sample with minimum purchase
If you have an established base of loyal customers, consider sending out a quick survey to get their opinions on the most valuable types of offers. Research has found that consumers enjoy taking surveys if they see that businesses use their suggestions.
4. Rewards Programs
Studies have found that 84 percent of customers say they’re more likely to be loyal to brands that offer reward programs.
Consider implementing a VIP club or other rewards program that sends exclusive discounts and coupon codes to loyal customers.
5. Multiple Distribution Channels
There are many ways to deliver coupons to your customer base. Experiment with different distribution channels to maximize your reach, including:
- Text message:32 percent prefer to receive coupons on their smartphones.
- Email: Emails with coupons offer a 48 percent increase in revenue per email.
- Paper: 55 percent say they use both digital and paper coupons.
- In-store: 60 percent say they always use in-store coupons when they’re available.
Check out the infographic below for more strategies to try when developing a coupon marketing campaign for your small business.
It doesn’t matter how small your small business is – any brand can benefit from a coupon marketing strategy. Whether you provide delivery services or cosmetics, these techniques will help you leverage the frugal nature of consumers to boost your sales and build your base of loyal customers.