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Top benefits of coupon marketing every marketer should know Share via

The ever-increasing competition in e-commerce has made coupon marketing one of the top marketing tools for digitally-operated brands. On top of it, decreasing brand loyalty among shoppers has just made the whole scenario challenging, and providing discount coupon codes has helped marketers to retain their consumers to some extent. There are many benefits of using coupon codes for brands in their marketing strategy. A meticulously planned coupon marketing strategy can help companies acquire new customers to their fold and encourage existing customers to spend more, resulting in more significant revenues. Let us look at some of the top benefits of coupon marketing.

Get new customers

Coupons have had a significant impact on brands’ business as it makes it easier to entice customers to try the products at a discounted price or with some incentive. In addition, coupons work well to attract new customers to shop at a brand and may help the brands turn them into repeat shoppers. According to some research, it is estimated that around 60 percent of consumers are likely to try out a new product or service if they get a coupon that incentivizes their shopping. Therefore, discount coupon codes can accelerate the pace of conversion of your customer and, in turn, increase the revenue for the organization.

Re-engage current customers

Brand marketers know very well that acquiring a new customer is way more expensive than getting the existing customer to shop with them. And to make your consumer who has not shopped with you in a long time shop again, brands use coupons. And they have proved to be quite a handy method to re-engage with the shoppers. Retargeting shoppers is critical for marketers because these shoppers are the easiest to convert again. Brands can send personalized coupons to their cold contacts to make them shop again at their stores. Moreover, sending coupons to loyal customers based on their shopping preference is great to increase sales and forge a long-term relationship.

Encourage sales of new products

Besides getting new customers into your fold and re-engaging existing clients, coupon marketing also helps brands to increase the sales of newly launched products and services. Coupons and discount codes give the customers extra push that leads them to spend on new products. Providing special access or early bird discount coupon codes to your exclusive or more loyal customers is a potent way for brands to make their shoppers feel valued, resulting in great sales outcomes. Coupon marketing is also a go-to strategy for marketers to clear stocks from the previous season and make room for the in-season products.

Track sales attribution

Brands use coupon marketing to review and track campaign sales through coupon code redemption details. While the marketers can share the same promo code across multiple influencers and affiliates, they can differentiate and segment them based on the campaign, product, discount, or seasonality, which will help them to understand better what strategy has worked best for them. In addition, comparing the different data sets will keep the brands informed about the best-performing deals and give them clear visibility about the partners driving the most sales through their medium.

Capture high-quality customer data

Brands can successfully build a high-quality customer database with an efficient coupon marketing strategy by assessing their consumer’s shopping behavior and purchase history. These insights will help them improve their coupon marketing game, but the collected data will also help the brands personalize their offerings for their customers. And according to various researches, more than 80 percent of shoppers globally prefer and likely buy from brands that understand their needs and personalize deals and promotions to fulfill them.

Although we have discussed the benefits of coupon marketing in detail and how it has been an integral part of the marketing activity for most brands, it should be noted that it comes with its own set of challenges, and marketers should be wary of those. Some of the negatives associated with this strategy are the high cost of running coupon marketing campaigns, reduced profits, negatively impacting the perceived value of brands, and its unsustainable nature if done over an extended period. Therefore, brands should be clear on the objectives and goals before incorporating them into their marketing mix.

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