What is a Coupon? How to use a coupon marketing strategy to increases conversion rate?
In the world, using Coupon in marketing strategies of businesses is very popular. In the era of Industry 4.0, the use of the internet for studying, entertainment, and even shopping has been promoted. Accordingly, the use of Coupons will become more and more popular. A coupon marketing strategy brings many benefits for both consumers and businesses. So what is a Coupon? How to use Coupon to increases conversion rate? Let’s find out in the following article.
What is a coupon?
According to Wikipedia, “In marketing, a coupon is a ticket or document that can be redeemed for a financial discount or rebate when purchasing a product”. Accordingly, when shoppers use coupons, they can buy a particular product with a discount price or save money on order.
Depending on the discount program and policy of each organization, the coupon can be used in a period of time as well as follow certain conditions. There are many common words applied with the meaning of coupons such as Coupon Codes, Gift Code, Discount Code, Voucher, e-Voucher … For example, if you have a 50% coupon, when you use it at checkout, you can save 50% off your order.
There are two forms of coupon:
Coupon offline: paper coupons. When making a purchase, you directly get this coupon. You will then receive a direct discount on your purchase.
Coupon code – Coupon online: a piece of code (include letters or numbers, or both). When you buy online, you fill this code at checkout to save money.
What is the history of creating a Coupon?
Coca Cola was the first brand in the world to devise the method of Coupons applied to sales. When John Pemberton invented Coca-Cola in 1886, his accountant started offering free Coca-Cola tipping coupons. But Pemberton scolded him for his extreme waste. Then the tycoon Asa Griggs Candler, who bought the company in 1888, supported the idea of the accountant and sent thousands of coupons.
The generosity of Coca-Cola has brought unexpected results. In the first year, the company sold an average of 9 glasses a day. Today it is one of the most recognized brands in the world, with a market capitalization of over $ 1 billion. And the coupon itself made a smooth transition until the 21st century.
Why do businesses offer Coupon Code?
Coupon Code is provided by the business as a policy to encourage customers to buy more products. Especially for new customers, companies are often willing to provide coupon codes to encourage customers to try goods and services. This is also the best way to reach customers for businesses.
Thousands of stores around the world offer coupon codes, discounts for customers throughout the year. The world’s largest sales website, Amazon, also offers a lot of Amazon Coupons when customers order goods and services online.
Where to find Coupon Code?
Nowadays, along with the development of the internet, consumers can find coupon codes easily. Typically, customers hunt for coupons on Goggle. Just a few searches, you can find many coupon codes on clothes, shoes, skincare, games,…
In addition, you can find coupons at e-commerce sites like Couponupto.com or Couponxoo.com. These sites have collaborations with thousands of online stores in the world in updating the latest coupon codes, saving tips, product reviews for customers.
How to use Coupon to increases conversion rate?
If businesses use coupon marketing strategy in the right way, they will develop their brand quickly. Typically, a business will issue a coupon to stimulate customers’ understanding of their brand.
Most customers love the promotion, so they will be willing to spend money to use that product or service. The more coupons reach the hands of many customers, the greater the chance of the brand knowing. That’s why many businesses provide coupons to attract customers to them. To do this, marketers should know exactly how to use coupons on growing business.
Identify target customers
The success or failure of a marketing coupon strategy depends on the suitability of the target audience of the business. This means you will need to first find the right customers for your coupon campaign. Are you planning to target new customers? Or do you want to attract existing customers to stick with your business?
If you are looking to target new customers, you will need to surpass what your competitors are offering. Remember, 80% of buyers switch brands if they have better discounts and promotions.
On the other hand, if you want to target your existing customers, you need to carefully analyze their buying demand and their browsing behavior. Then carefully search for coupons that match their buying habits.
Decide which coupon to use
Every customer has different buying preferences, which means that offering coupons based on their preferences and needs should also be diverse. So you will need to be very careful when choosing the best coupon type to target your audience. Make sure the type of coupon you choose matches the shopping habits of your target audience.
Choose instant value coupons if your intended buyer loves instant savings on purchases. Or send a digital coupon with “Email notification” to encourage buyers to complete their transaction.
To sum up, the above is something you should know about Coupon. Coupon marketing is a popular marketing strategy applied by many businesses now. However, marketers need to have certain knowledge about this marketing method in order to come up with the right strategies. Hopefully, this article can give you an overview of Coupon marketing and steps to use Coupon successfully to bring high customer conversion rates.