To stand out in today’s cut-throat business world, companies have to employ increasingly ingenious methods to either woo new clients, keep existing customers, or reactivate old customers. With the advent of internet marketing and the digital age, it has become even easier to lose relevance and sink into oblivion because of all the competition. Everyone wants a piece of the pie, and consumers are spoilt for choice.
One way to stand out and entice new clients is by using discounts and coupons. Today, these come in many forms, including coupons, offers, emails, MMS, SMS, push notifications and many other digital channels. A study by Experian Marketing Services shows that these digital forms of deals and discounts have become extremely popular. According to them, emails containing some form of offer, coupon, deal or discount are opened 14% more times than other promotional emails. This results in a 34% increase in unique clicks, a 27% jump in transactions, and an amazing 48% increase in revenue per email.
What does this say about this landscape? It is impossible to survive solely off traditional forms of advertisement. With a huge portion of the world’s population going mobile, there is such a wealth of data on your potential customers available that you cannot afford not to take advantage of it. Mobile has made it possible to know a potential customer’s location, likes, needs, and past transactions. It is possible to tell how likely a person is to buy something. This has given businesses the rare opportunity to tailor deals and discounts to a customer’s needs, maximizing buying potential.
Deals and discounts have therefore become more effective in the digital age. By taking advantage of customers’ data, most marketers have been able to create campaigns that resonate with each customer. The marketing landscape is moving away from traditional coupons and ads to targeted emails, barcodes, QR codes and promo codes with tailor-made deals and discounts. This has led to a continuous increase in quality of engagement year after year.
The best news is that the effectiveness of these methods is not limited to retailers alone. Other industries can similarly take advantage and offer tailored deals and discounts over digital platforms to their clients. For example, the financial industry can offer customized loans to boost lending rates, healthcare providers can benefit from targeted marketing, the travel industry can gain new customers through these discounts and deals, and the manufacturing industry can access new markets in this way. The opportunities are endless. Each industry, however, has to determine the strategy that works for them and be observant and analytic in their implementation.
Furthermore, deals and discounts are perfect for when business is slow and customers are not buying. As stated earlier, their main purpose is to woo new clients, keep existing clients, and reactivate old clients. When business is low, a reactivation campaign can prove effective in bringing in more revenue. Offering a special discount to old clients or a new deal is an effective way to get them back through your doors. Once they step through your doors, it is your job to get them to purchase more than what the deal or discount brought them there for.
The effectiveness of deals and discounts can easily be determined by careful evaluation of the ROI, industry trends, data analysis and reports. Sometimes, they may not be the best route to take. For instance, sending an abandoned cart email to a customer who left an unemptied cart on your site does not need the inclusion of a deal or discount. Customers usually engage with such emails really well, a discount would only be disadvantageous to your business. Instead, consider offering a first-time customer a discount or a deal upon their first purchase to build loyalty.
In the end, these two marketing strategies offer nearly unlimited opportunities in today’s digital world. All one has to do is learn how to effectively take advantage of them. Plus, they have started transcending the digital world, which is great news for consumers. It is not uncommon to find deals or discounts online that are redeemable at specific physical locations or businesses in the real world. It is a win-win for both businesses and customers. The customer gets an awesome deal, while the business gets valuable insight on the health of their business from trackable digital deals and discounts.