A recent white paper highlighted the importance of correctly utilizing coupons as a part of e-mail marketing campaigns. Properly applied, it estimates that coupons can easily lead to a total revenue increase of more than 30% over the course of your marketing efforts. According to the coupon experts from www.wikigains.com , the best practice is to perform your own market testing with specialized coupons, carefully target your offers to avoid giving unnecessary discounts, and tailor your offers to ensure customers buy now and tell their friends about their experience.
Testing The Waters
Research shows that including a 10% off coupon in a marketing e-mail might increase the chances a customer will buy a product by over 45%. But how does this compare to a 20% off coupon? The best way to figure this out is with small, highly-targeted mailers directed at different sections of your consumer base. You might find that first-time customers need a steep introductory discount in order to transform into brand loyalists, for example, while your existing loyal customers might be enticed by smaller offers.
It’s important to accurately segment your customers into useful groups while you perform this testing. Normal groups include new subscribers, first-time customers, “loyal” repeat customers, business customers, wholesale customers, online customers, and offline customers. Be sure to analyze your consumer base for additional cross-sections that you can separate out data for. You might be surprised at what you find!
Use Urgency To Drive Purchases Now
You don’t want to let your coupons sit unused in your customers’ inboxes. For one, this means you’re not turning over inventory quickly, but it also means that the coupons have turned into a liability. A 20% off coupon on a product with a huge margin might make sense now, but when you change the price of that product six months from now you might take a loss on each unit sold through the coupon.
To combat this, wikigains.com suggests you create time-limited offers that cater to a sense of exclusivity. Not only will your customers feel pressured to act before the deadline runs out, they’ll also feel valued by the “exclusivity” of the coupons you send.
Don’t Forget Bulk Buyers
Study indicates that coupons were especially effective when targeting both wholesale and professional buyers. It’s important to remember these customer groups with your marketing materials, especially since they tend to spend a lot of money when they make a transaction.
Drive Word Of Mouth Via Creative Coupons
Giving your customers the ability to share coupons via their social media accounts is effectively free advertising. It’s a good idea that your marketing campaigns feature prominent, and well-tested buttons that make this process easy.
Using Coupon Trends To The Fullest
Experts from wikigains.com, say a powerful marketing tool that shouldn’t be overlooked. While including a coupon with a marketing e-mail dramatically increases both click-through and transaction rates, it’s important to use segmented testing to make sure you don’t over-discount and lose potential profits with your campaigns. To get the most out of your coupons, be sure to use exclusive, limited time offers that are tied to current inventory conditions and market trends.