Most experts believe that Coca-Cola distributed first ever coupons back in 1888, which was a ticket for a free drink, with the idea to promote it further. According to statistics, by 1913 more than 8.5 million tickets were distributed through magazine inserts, mail, company employees and sales representative.
It was the first effective discount marketing campaign that other companies decided to implement too. Historically speaking, coupons are a mass promotion vehicle that can drive more sales of some particular product or service.
In the digital age, you can easily find puffy mattress discount resources so that you can find bedding for the affordable price tag. This particular era has brought us the opportunity to join forces with coupon suppliers which will allow you to promote your brand even further than it was.
Personalized coupons can easily support introduction to products, retention of customer revenue, categories, improvement of the brand, cross-sell strategies as well as private-label recognition among other things that you will get.
If you want to achieve these objectives with reasonable ROI, you have to give attention to the effectiveness of effort by creating the appropriate mixture of personalized coupons for your old and new customers.
Why Should You Personalize Coupons?
The effectiveness of this optimization and personalization depends on having the appropriate coupons in place. The bank of hundreds of coupons will fulfill different customer needs and preferences, and at the same time, it will provide objective to your suppliers and retailer.
It is about supporting marketing objectives, but as you maintain coupon, it can be a costly burden. Therefore, you have to find a right mix of offers by using specific methodology.
Each coupon requires maintenance of back-end systems (click here to learn what it means), creative work.
How To Address Various Customer Needs With Coupons?
If you want to fulfill your ambitious and multiple objectives, you have to map your customer needs to four basic categories:
- Essentials – These are products that most customers purchase at a high frequency such as daily food, fresh food, fruits, dairy products and many more.
- Specials – These are products that your customers are buying with the idea to satisfy their specific needs such as baby product, beauty products and many more.
- Exotics – These are products that people buy at low frequency to cover occasional needs.
- Desires – These are products that most customers purchase at low frequency to satisfy their common desires, such as snacks.
Basic Principles To Understand Which Products To Put On Discount
- Attractiveness – Coupons should come from Specials, Essentials and Desires categories. Have in mind that coupons for Exotic categories are not sufficient for recurring and driving value of proportion. They can be useful if you want to make an ad-hoc marketing initiative so that you can drive sales for a specific category, period or product.
- Reach – If your customers have a high affinity with product from Essentials, Desires, and Specials, you should find a way to place these categories at a discount because you will enhance customer relationship and diversify your products and services.
- Value – When it comes to products from distinct categories, you should make them at least 25% of the overall category sales transaction. That way, you will be able to ensure customer base coverage which will be sufficient for your future work.
Customer base is essential factor for making successful retailer business. You should visit this website: https://en.wikipedia.org/wiki/Customer_base for more information.
How To Adress Marketing Objectives?
As soon as you make the appropriate selection of products that you wish to achieve, you have to make precise targeting so that you can bring them to your marketing objectives. Your ideas should benefit both suppliers and retailers, who will fund these coupons.
- Win Back – This is a coupon for niche products that require specific needs such as unique and differentiating products.
- Retention – Products from Specials and Essential categories will consider itself, but you have to make a discount for specific brands.
- Growth – Coupons for Desire category products are best solutions for basket growth, primarily because consumers will have the wish to buy them in larger frequencies and quantities if you add the appropriate promotion.