Most web based enterprises perceive coupons as a marketing tactic that can increase sales. But the truth is that this is not always the case. In some cases, large discounts can produce negative effects on a business.
In this article, we see how coupons can be used to increase profits of a small family business in the long run. In particular, we see 5 ways Homes Direct 365, located in Middlesbrough in the UK, use voucher codes to drive more sales and maintain customer loyalty. The company we study this time sell furniture and home interior products through their website and their Facebook page. They also distribute coupons for HomesDirect.co.uk via their newsletter.
Measuring ROI and Tracking Campaigns
There are few better ways to track and measure the ROI of an advertising campaign than using coupon codes. To do this, an online store, like HomesDirect365, can use different coupon codes for each of their ad outlets, which can be anything from their weekly newsletter to social media pages. Recording the unique codes used on each purchase a marketing manager can track the codes back to the marketing channel. This data is important because it provides the company with concrete data on what marketing channel works better (and what does not) and where the company needs to re-adjust their marketing resources.
Bringing in more customers
Giving limited-time discount codes to first-time buyers is a great way to induce the notion of urgency to prospects. This is exactly what HomesDirect365 do. By making a promo code offer limited in its duration (i.e. £200 Off antique French style bedside tables this weekend only!), prospects may be compelled to act fast. Once they do, they become part of HomesDirect365 customer base. Moving from the prospect list to the customer list, users will become even more valuable over time.
Target people who left the shopping cart
The process of buying things online is based on users of a web store making their choice and placing a certain product or products in their shopping cart, along with their email and other personal data. But then, for some reason, a number of users simply abandon the cart. Targeting these users means that you send them an email specifically for what they had in the shopping cart before they left so that you motivate them to complete their purchase.
Providing Rewards to Active Facebook Fans
Loyal Facebook fans should be always a valid target for discounts and coupons. This is a powerful tool because it strengthens the bond between a customer and the business; many companies like Home Direct 365 regularly provide such offers to their Facebook fans for their furniture products.
Maintaining your list of existing customers
Periodically sending coupon codes to your list is a good way to maintain your relationship with your list. For example, you can send your list of existing customers 10% off their order. This is one of the most effective ways to keep your list alive and make them feel that your business is still there and that you still care for them.
However, make sure you do not overdo it with offers sent to them too frequently. Bombarding your list with coupons means you risk your users unsubscribing! Finally, just like Homes Direct 365 voucher codes, if you do send an offer make sure it is of great value.