Snipping and clipping days are almost over, and now it is time for scanning and clicking. The game of digital discounts is on fleek, and it is going strong. Somehow, still, when we hear the word coupon, many of us thought about Sunday newspapers with inserts.
Not anymore, for today’s marketers, they are relying on push notifications, email, and other digital channels. The 2013 Q4 report regarding the Email Benchmark of Experian highlighted that emails which contain some form of coupons have a 14% unique open rate than the emails without any discount offers. It also brings 34% jump in unique clicks, transaction rates are increased by 27%, and the boost in revenue per email is amazing 48%. No other type of promotional type of email can bring that kind of response.
The use of mobile devices is hot, and it is used for the ultimate marketing. Marketers can now understand the location of customers, their previous transactions, and inclination towards products and services which helps in creating a personalized discount. These personalized online discount promo codes are created by analyzing the detailed customer data which helps in making them more meaningful to the customers.
The study by Marketo clearly indicated that customers are more likely to redeem the offers when they are tailored based on their previous interaction with the brand. A simple rule of sending 10% off to all of the customers is not going to work anymore.
Easier To Redeem
Bar codes, promo codes, and alphanumeric codes are changing the dynamics of couponing; it has all become digital now. According to research, there is almost a 50% increase in the email campaigns using online codes the past holiday season. Most of the studies suggest that people are more inclined towards making a transaction when they have promo codes on their mobile.
Digitally offered discounts are not only effective for online sales. Astonishingly, according to one research, 20% of digital offers encourage the buyers to show in-store coupons using their mobile to the salesperson.
Can Be Time-Limited
Another effective way is to set a time limit on the discount. Offer code and announce it will be valid till specific date. Research of eMarketer found out that 82% of the offers are redeemed within a week which makes sense why setting a time limit is beneficial.
Aids In Target Pricing
The online discount promo codes are also helpful in target pricing. If a brand wants to offer a higher percentage off for its loyal customers and a lower percentage discount for others it is possible now. Before with only physically printed coupons, it was not possible, but now precise targeting can get humongous savings for both retailers and buyers. It has also become extremely easy to track couponing activity digitally.
Digital couponing is also effective for reactivation campaigns. When there is a drop in sales and purchasers stop buying certain products, marketers start implementing digital discounts. They are really easy to use that people even use it only due to their easy to redeem nature. Compare the effort of finding, snipping, going to the store, and then be able to redeem the coupon to now just clicking from the sofa.
One study showed that more than 80% of the online buyers use coupons which means people are not just redeeming promo codes, they are actively looking for them the whole time they are spending on the internet to shop. However, coupons need to be executed really smartly to make them headache safe for the marketers and to make sure they don’t result in a loss in revenue.
It is very important to know the audience, the majority of the established marketers are focusing on millennials, and they have a valid reason for doing so. The research stated that 84% of millennials use coupons when they are shopping through the internet. There is another study that determined that 34% of millennials are searching for online discounts and coupons weekly. Now, imagine the impact of offering online coupons can have.
To put in the simplest words digital coupons and codes are an effective way to make customers walk in the store or make them buy online. They can even increase brand awareness, and they are useful when it comes to customer retention.