In 1888, Coca-Cola launched a promotional campaign where the company mailed cards that allowed the receiver to get a free glass of the beverage. The card, which was also printed in magazines, is believed to have provided over 8 million free drinks to Americans between 1894 and 1913. The campaign was the first documented coupon marketing strategy to boost not only the visibility but the sales of a specific product.
Coca-Cola’s coupon marketing strategy is an obvious success given the popularity of the beverage today. With that in mind, If you are planning to create coupon marketing for your product, then consider checking out some of the strategy suggestions we’ve compiled below. Do take note that an effective coupon marketing strategy requires research and creativity. Not to mention that it has to be unique and memorable as well. So without further ado, check out our list of strategies below.
Before you jump into designing your coupon strategy, you must first understand the nature of coupon marketing. Always keep in mind that your goal is to provide an incentive to customers through discounts and deals. You need to understand that your target is not only to retain your current customers but to make them feel valued. This way, your customers will not only pledge their loyalty to your product but will provide free promotional marketing (through word of mouth) to potential customers as well.
Before the internet, coupons were mailed or printed in specific magazines. This method allows the marketer to target a specific audience for their products. Nowadays, coupons are often found online, although you can still find coupons in magazines, online coupons and promo codes through online shopping are now the norms.
With that said, you have a choice to produce a generalized coupon i.e. 10% on all gardening items, or provide product-specific coupons i.e. 10% on seeds. Either way, you must make sure that your coupons can only be used once. This will provide your customer with a more personalized shopping experience especially online.
Not all effects of coupon marketing are positive; this type of marketing has also come with possible negative effects on your business. Knowing these disadvantages in advance will help you improve your planning.
One example of the negative effects is the possibility of damage to your brand. As you may have noticed, marked-down brands are sometimes considered to have low quality by some shoppers. This is one of the reasons why you should personalize your coupons. Another negative effect is that your coupons could entice single-purchase customers instead of loyal buyers. This is one of the possible outcomes when you have a generalized and not personalized coupon or coupon codes.
There are two types of coupons that you can use, the first one is the traditional type which is found in magazines and periodicals. The second type is the online coupon which is found on internet sites. So, the first thing you should do is to choose the type of coupon you want to use in your campaign based on your target customers. Do take note that there are still millions of potential customers who prefer to cut their coupons from magazines. If you are unsure, then see to it that you have a balanced distribution of coupons for both online and traditional.
In addition, you should also consider the current situation of your target customers. One example is during the pandemic when almost everything was put to a halt. In this situation, you must capitalize on the available means of dissemination, which is the internet. Also, do take note of the current trend within your target. One example is if climate change begins to trend, then you should slightly back away from printed materials that use paper. Not only will this save you some funds but you can also use it for your campaign; like, we only provide online coupons to help save the environment.
If you want to play it safe, “Free Shipping and Limited Time Offers” are two methods that you can exploit. These methods are considered two of the most effective online marketing strategies. On that note, you should make sure to research shipping costs within your region. One way to take advantage of the “free shipping” method is by bundled purchase, the same goes for the “Limited time offers” method as well.