Are There Any Alternatives To Coupon Codes For Brands And Retailers?

Promotion is a marketing strategy used by a large number of retailers and brands, whether they operate exclusively online or have a network of physical locations. Promotion techniques are known to encourage consumers to make purchases. In the short term, they are ideal for increasing turnover and boosting sales. In short, they are excellent.

In spite of its supposed occasional nature, it has been applied in a permanent way by many brands, along with the wave of the Internet and pure play. It has become a reflex for consumers today to use promotional codes. Does that mean they are still effective? Is it possible to differentiate ourselves from our competitors by using coupons?

Coupons: an overused promotional tool

Businesses have benefited from coupon codes. Brands and retailers have repeatedly proven that promotions are a good strategy. The following are some of the reasons and objectives for using such a strategy:

  • Encourage the trial of new products or product collections
  • To attract new customers
  • To dispose of unsold products
  • To increase the basket average

Since the introduction of its electronic version, the e-coupon, the coupon has become a standard. Using the digital version has made the process easier for brands while adapting to the new expectations of Internet consumers.

The popularity of these marketing tools has become so widespread that 60% of consumers cite coupons as a direct influence on their purchasing decisions. Moreover, 33% of online shoppers will look for a coupon code systematically, and many of them will abandon their shopping cart if they cannot find one.

However, they have become a standard.

It is precisely this "systematic" gesture that is at the core of the problem. Coupons are supposed to provide stimulus. However, consumers today tend to abandon their shopping cart if they cannot find a coupon code online.

As a result of the overuse of coupons by brands, Internet users are accustomed to seeing coupons as a way to push them to make purchases. Coupons have lost their value in the eyes of consumers. This is simply an opportunistic offer, not a reward.

People take advantage of it, always on the lookout for the best codes and never wanting to pay the starting price. The brand is often forgotten in the process. Customers will leave if better deals can be found elsewhere. When a new promo code is not available, I'm not sure if they will buy again. Multiplying coupons results in short-term revenue but degrades the brand's image.

Do you know of any alternatives?

An effective reward: the digital gift card

As a promotional tool, the e-gift card, a new dematerialized version of the physical card, can also be used. The promotion code is massively used in the United States but is still unused in France. It can be used to solve the disadvantages of the promo code and to better control certain variables for the brand.

What makes the dematerialized gift card so effective for the brand?

Consumers can get a limited amount of digital gift cards directly from retailers instead of a coupon.

It's a reward.

As opposed to holding a percentage of an unknown amount, users receive a defined amount that can be spent with the brand. Compared to the simple code, it already has value. In addition, it always has a much bigger impact, even if consumers receive a smaller discount than that offered by coupons. Why is that? Because consumers associate the card with a personalized gift as if they were receiving it from a loved one. A reward instead of a percentage allows the brand that will be present on the card to be valued. As a result, there will be even greater commitment.

We switch from a discount program to a reward program that differentiates us from our competitors. Our reward program will result in much more engagement and participation.

An increase in income.

Secondly, we don't cut into revenue. Promo codes allow brands to lower their prices. Gift cards open up new revenue opportunities for them. Here's how it works. A digital card in the hands of an Internet user will make pleasure shopping much easier. It will encourage impulse purchases and upmarket purchases. On top of the card, the additional income will be substantial, enough to cover all the promotional costs.

There are multiple benefits.

Gift cards as a promotional tool have other advantages for the brand:

Choice of parameters: the card can be customized to meet specific promotion needs. Can it be used online, in stores, or on the app? When can it be spent? On what products or categories can it be spent? Creating consumer habits is vital.

Any device: any computer, smartphone, or even paper can be used to access the e-gift card, even if it is printed. However, it is also compatible with wallet apps, which Millennials frequently use. Wallet apps provide brands with a communication channel. Geolocation and bitcoins allow them to send targeted push notifications via these apps to consumers when they enter the store.

  • Know your customers: since the gift card is a means of payment belonging to the brand, anonymous transactional data can be obtained. Date, location, and use of a gift card, online and in-store. With these data, marketing campaigns can be significantly improved and new customers' behavior can be better controlled.

    Using e-card applications as a marketing tool. The e-gift card is a powerful promotional tool, but what are its concrete uses? You can use it in several different ways, depending on the original purpose of the brand.

  • You can provide a gift card for any purchase that can be redeemed later: The customer will then be invited to return to the store of the website to purchase a product. Brands control the flow of these channels by playing with the use dates.

  • An emailing campaign with free gift cards can be used to invite people to try a new collection or a new mobile application, for instance.

  • An e-commerce brand may offer its customers another card following the purchase of several cards, so that they are encouraged to make purchases, such as those for Christmas for instance. They will be encouraged to shop again.

Promotional codes vs. e-gift cards

Consumers who use e-gift cards are satisfied with brands that take the plunge. More than 80% prefer to receive a genuine reward rather than a simple coupon.

Additionally, their purchasing intentions are reinforced: +13% with a reward compared to a coupon.

A digital gift card can result in more than satisfactory results for brands and retailers:

  • Rewards grow revenues at a faster rate (36% versus 28%)
  • The profit margin for rewards is higher: 24% compared to 18% for coupons.
  • Compared to coupons, rewards increase brand image by 21%.
  • E-cards distinguish brands in the eyes of consumers.
  • Future purchases are more likely to be committed

In a promotional strategy, a gift card appeals to consumers and brands alike. By implementing coupon codes instead of coupon codes, the brand is able to quickly differentiate itself from the competition, create an impactful campaign with customers, and do so without degrading its brand image or harming its results.

Social media marketing is a great investment for small businesses and startups

Social media was a foreign concept ten years ago. However, today, thanks to giants such as Instagram, YouTube, and Facebook, many businesses are seeing their value as marketing tools. The growth of the social media influencer and content creator market has created new opportunities. Brands are using social media and influencers to reach their customers and earn income.

As a brand, social media marketing offers more than influencer marketing. In that realm of hashtags, comments, and likes, there is a world of opportunity for small businesses and startups.

Thursday, March 31, 2022
Click here to follow SIRKLE