If you have an email program, you should be happy to know that coupons can take its effectiveness to the next level. As per WikiGains, a UK coupon site, both in-store and online coupons offered by e-mail can result in increased revenue generation, more traffic, and improved customer engagement.
But to gain these benefits, coupon e-mail marketing has to be done right. In fact, below are the best ways to use coupons and e-mail marketing to improve business performance.
How Best to Use Coupons
Test Various Coupon Strategies for Greater Efficiency
Different customer categories will respond to the coupons sent by e-mail differently. For starters, existing and high-value clients do not need to be inundated with email-based coupon offers. For this category of clients, the offers do not need to be too aggressive either.
But to draw in new clients, a little aggression might be necessary; and the coupons should be sent a little more regularly to improve response. However, generally speaking, the best way to know how to apply email coupon marketing to a given segment is through some trial and error. This process can provide information on what strategy a given segment will respond to the best.
Focus on the Appropriate Segments
Research indicates that coupons sent to professional groups and wholesale buyers through email got better response rates than those sent to average subscribers. In many cases, this is a business-to-business marketing strategy; and yet, many marketers forget about this group of customers in their coupon marketing campaigns.
Therefore, you should ensure that this group of customers is part of your coupon marketing drive. WikiGains advises that you try sending the coupons as part of the e-mail marketing campaign to welcome new clients for enhanced performance.
You can also look through your subscriber list to see what customer segments respond more to the coupons based on online and offline purchases. Also, if you identify a group where the response to the coupons has been less than impressive, test a different coupon strategy to improve response and engagement.
Make the Coupon Offers Urgent and Exclusive
One of the main benefits of online coupons and e-mail offers is that they can be redeemed immediately during checkout. This is an obvious fact to many, so there is a way you can make the customer response to the coupon offer more urgently by limiting the period within which the coupon offer can be used. Not wishing to lose the chance to get a discount, the customers will often feel the urge to make a purchase in order to use the coupon.
Additionally, telling the customer that the coupon offer is exclusive can significantly improve response levels. Exclusive offers make the customer feel special, and they work especially well for high-value customers. Not surprisingly, over 35% of email coupon offers with the word exclusive in the subject line are opened by the clients.
Adjust Your Coupon Offers Based on Business Requirements
Research has shown that when coupons with deep discounts of at least 30% are sent along with announcements that clearance prices are being offered on certain items, there is a better response from the customers. In fact, sending e-mail coupons based on such business cycles can help clear inventory and improve their performance considerably.
Encourage Sharing of Coupons to Improve Word of Mouth
Whenever you are setting up a coupon campaign, ensure that the emails give your subscribers an option to share the offer with friends. This will improve the popularity of your coupons and make the campaign viral. It turns out that when email offers include a coupon offer, they are 1.4 times more likely to end in a referral.
Research shows that coupons have become a major part of our shopping culture. Although coupon offers through physical print media is on the decline, e-mail based coupons are growing in popularity as web use grows. In other words, email coupons are becoming more important to businesses that want to grow their revenues and improve customer engagement.
Nevertheless, e-mail coupon marketing has to be done right. According to WikiGains, things to consider include timing, understanding customer segments, adjusting the offers to business seasons, and testing various segments to establish optimum coupon strategies for every segment. Taking these steps will not only increase the effectiveness of your email coupons but also lower your email coupon marketing costs.