In every purchase decision that a customer makes, saving money is one of the factors he or she considers the most. That’s why businesses often use voucher marketing to incentivize new and loyal customers into making a purchase. A research by Kelton also discovered that 48% of customers buy faster when they get a voucher, and 37% of them will buy more than they usually do. In this modern age, vouchers are not limited to printed ones, but also digital ones. How do you apply voucher marketing as a promotion strategy that works effectively for your business? Let us find out together!
Voucher marketing at a glance
Voucher marketing is a familiar concept for many businesses. Basically, vouchers are given to customers to motivate them into making purchases from the business. These vouchers can be given at any point of a customer’s journey, whether it is from customers who have never made a purchase from you at all, or loyal customers. Nowadays, it’s common for vouchers to be given digitally as e-vouchers or e-coupons.
Factors affecting voucher marketing effectiveness
There are some factors that affect the success of voucher marketing as a business promotion strategy. Here are those you need to consider:
Type of voucherAs previously discussed, vouchers can now be given physically or digitally. Digital vouchers are all the hype these days for many reasons including its convenience and security. With digital vouchers, customers can keep and use them without worrying about losing or tearing the voucher. Moreover, digital vouchers also help businesses track their usage easily.
Voucher conditionsEvery voucher given out by businesses need to have a clear set of terms to avoid confusion from both businesses and customers. Typical conditions would be shopping over a certain amount in order to be eligible to use it. If the point of the voucher is to attract new customers, you might go easy on the conditions, for example, customers only need to show up at your store at the given period. Don’t forget to state the validity period to create a sense of urgency for customers to use it before it expires.
Brand recognitionAside from what’s actually on the voucher, your business image or recognition in public also determines your voucher marketing success. Simply put, if a business is unknown or relatively new for the public, it will be less likely that people will be interested in using the voucher. Aside from that, businesses that have the image of giving too many vouchers with too big of a value will seem like a low-quality business.
TrackingIf you have done voucher marketing and started distributing many vouchers, you need to make sure to track their usage to ensure your voucher marketing success. Every voucher needs to have a clear tracking system to help you know who uses it and when and where they do so. These data you obtain is also valuable in helping you optimize your next voucher marketing campaign.
By considering these factors, you can start doing voucher marketing as your promotion strategy. Here are some tips for successful voucher marketing!
Tips on applying voucher marketing
Determine the voucher offerThere are many kinds of offers you can state in your voucher, such as discounts in the form of percentages, amount of money, free items, and so on. Consider the most relevant and interesting offer for your customers that do not cost you too much. You can also offer free or discounted delivery, discounts for ignored shopping carts, bonus of tester products, and many more. Don’t forget to count on your customer data as your compass in understanding the offers they want the most.
Offer voucher with minimum spendIncrease your average customer spend with this strategy! With vouchers, customers will be motivated to shop more from you to reach the minimum spend required to enjoy your voucher benefits. Although you are giving price cuts, you can still increase the revenue you get from each customer.
Distribute vouchers across omni channelsThere are multiple channels you can use to give out your vouchers, from your physical stores or emails, SMS, and push notifications. To create a sense of urgency to use your vouchers, you might opt for more instant channels like SMS or push notifications. You can also use social media channels to do your voucher marketing! Share a link which customers can click to lead to your sign-up page where they can obtain vouchers instantly.
Encourage the movement of less popular productsVoucher marketing can also help you encourage the movement of your less popular products. Create vouchers for bundles or packages that consist of your popular product paired with a less popular one. This helps you clear out your inventory too. It also allows customers to try your less popular product and who knows, they might end up liking it and come back to buy it more often!
Voucher marketing is one of the simplest promotion strategies to attract new customers and retain existing ones. With the help of digital technology, the creation, distribution, and monitoring of the vouchers can be much easier. Contact TADA and let us start building a suitable voucher marketing strategy for your business today!