When people shop online, they rarely expect to pay the full price for products and services. In the US, one in three shoppers look for coupon deals before making a purchase, and 59.3% do so online. Consumers have become accustomed to discounts on their first order and free shipping offers that if it’s not apparent from the site, they’ll go off searching for it.
The savviest online shoppers know where to find coupons and use them with other offers and cashback to get the best deal possible. For businesses, that could mean less profitable sales funnels. To meet consumer demand and remain profitable, retailers are looking towards a digital coupon strategy. Nearly 75% of consumers have downloaded an app for the sole purpose of receiving coupons or deals.
However, implementation costs hold stores back from developing digital coupons or transforming their existing physical coupon strategy. As consumers continue to prefer smartphones and digital channels over visiting brick and mortar stores, they are more willing than ever to engage with digital coupons.
This article discusses what digital coupons are and how Messangi can help develop your business solution.
What are digital coupons?
A digital coupon is a promotion offered by retailers to a current or prospective customer. Typically, they will provide a specific percentage discount, free shipping, products, or another personalized promotion. Messangi have delivered solutions that include digital loyalty cards that replace plastic cards with mobile wallets, points-based rewards personalized with spending habits, redeemable prizes, and personalized promotions.
Digital coupon redemptions are expected to surpass $90 billion by 2022 as QR codes, chatbots, and invisible payments continue to show disruptive potential.
Benefits of digital coupons
Digital coupons are convenient for customers, especially when looking to purchase using their smartphone. Research from Statista shows the number of digital coupons users in the US is growing year on year. There are five key reasons why digital coupons will benefit your business.
Increase mobile customer engagement
If you want to tie offers into other campaigns, capturing your audience on mobile platforms has become imperative over the last few years. You can add deals to a contest, within seasonal offers, or in email marketing.
Increasing sales volume
You might think that introducing discounts and coupons will negatively impact revenue, but in most cases, it will do the opposite as long as you have a well thought out strategy. First, a digital coupon can convince customers on the fence to make a purchase when they otherwise may not have done it. You could also use digital coupons to shift low selling items by discounting them instead of having them sitting in a stock room.
Upselling
Adding a spending threshold can boost average order values. For example, you can use a digital coupon with a message like “Spend $20 more to get 10% off your order!” The customer has a reason to stay on the site, engage with it, and spend more money.
Control your sales and revenue
If customers are more likely to buy from you when you offer a digital coupon, strategize when you show them deals. For example, a limited-time digital coupon creates a sense of urgency and can help boost profit during a specific period if you need it.
Coupon specific landing pages
You can target specific audience segments with digital coupons and direct them to bespoke landing pages. For mobile markets that are coupon user heavy, unique landing pages can help to improve the relevancy of your offers.
You can distribute digital coupons via several channels such as email, social media, paid ads, SMS, affiliates or influencers. The platforms you choose will depend on your audience. For example, if you have a target market in the 60+ age demographic, you probably don’t want to share digital coupons on Instagram stories as they’ll never be seen.
How to make digital coupons for your business
You don’t have to break the bank to create digital coupons. Messangi can support your requirements and develop convenient customer offers with timely reminders and real-time data. We will ensure the solution is simple and cost-effective for your business.
Various options are available for integration with the ability to combine coupons into your existing POS tools.
Messangi can help you achieve your business goals through digital marketing. The user-friendly platform allows you to create and distribute secure digital coupons within a few minutes. Reach out today to learn more or request a demo.
