Why use Coupons?

Using coupons is great when it comes to tracking your marketing campaigns and putting a dollar value on the return on investment on your marketing spend. Coupons are considered to be an old-school marketing tactic. However, when it comes to E-Commerce I’ve seen a number of businesses use this method to track the effectiveness of various campaigns, affiliate groups, and other marketing ventures to push their product and services.

A lady recently called me on the phone and she said “Mr. Clarke I’ve been pushing coupon codes and customers are not biting! What am I doing wrong?” And so, I had asked her the question well what is your offer? What’s driving them to use this code? she answered back, “well it’s $2.00 off their next purchase.” I was surprised and I replied ok well how much is your average sale value? Her response “$80.00” I said let’s have look at the coupon principle at play.

 

The Coupon Principle

Implementing a coupon usually adds an additional two to three minutes to a checkout process. buyers have to find the code, they have to copy it in some cases some persons will write them down and then go back to the checkout screen. They have to paste or type the coupon code on the site. This adds additional time to the whole process.

If you are going to give your buyers a significant amount of work you have to make it worth their while. A minimal amount of value from the customer’s perspective it’s not worth it for them to use a coupon if the value of the offer the value is less than the time it would take to utilize it.

 

Implementing the code

I advised her to increase the customer usage of the code she would have to make the offer more attractive. Make the value behind the coupon code something that customers will want to go looking for. Make it so that they feel they will have to use that offer to get the deal of a lifetime, get the bonus. 

The value behind it has to be something that is going to make them want to work for it and the work they put in has to be more than what they will save or what they will get if they don’t use the coupon.


Sharing your Code

The next question I had to answer was, how are you dispersing this coupon code? And she said to me, the coupon code is at the bottom of her business card when she can hand them out to the customer. I thought for a moment and said to her, well, that’s a pretty good idea but what about your other marketing initiatives? Your business card is just one form of print marketing. You have a lot of other opportunities that you can be used not just offline but also online where you can utilize a coupon to track its effectiveness.