As a marketing tool, coupons quickly boost your sales and profits
The German couponing market
Couponing is booming in Germany and has grown even further since the pandemic: consumer goods manufacturers distributed around 22 billion coupons in the German market.
Both retailers (+35%) and brand manufacturers (+5%) increased their coupon marketing to win and retain customers. Digitalization was clearly a driver of this development: in 2020, the FMCG industry ran a whopping 85 percent more online couponing campaigns than in the previous year. In 2020, consumer goods manufacturers increased coupon redemptions via internet/mobile by 130%* compared to the previous year.
How coupons work
A coupon entitles the holder to a service or a discount, via a coupon code (often simply called a discount code). The code is usually redeemed at checkout or in the online shop when buying products, services or gift cards.
Depending on the campaign, coupons offer a fixed saving (e.g. €10 off) or a percentage (e.g. 10% off). Customers with a discount code can unlock the discount themselves by entering it at checkout.
With the gurado couponing module you create coupons for a marketing campaign that runs for a period you choose, during which they can be issued and redeemed. Creating a coupon takes two steps: first you create a coupon product, then you set up a coupon campaign. The product is a template you can reuse for all your campaigns. Gift card systems like gurado include code generators, and the codes can be recognized and redeemed in the online shop, via an app (such as the gurado WebApp or the gurado iOS/Android app) or at checkout.
Coupons vs. gift cards: the difference
Gift cards entitle the holder to a service, a product or a benefit. Coupons also have a value, but nothing is sold when they're issued – so a coupon can't be sold like a gift card. When a customer redeems a coupon with the gurado couponing module, they save money or get a perk without having paid anything for the coupon.
Purposes of couponing
To get the most out of couponing, include different types of coupons in your marketing plan: discount coupons that encourage customers to buy right away, and loyalty coupons that build long-term customer loyalty. Digital coupons can be distributed via email and social media, while printed coupons can be used in local shops or online. Using a mix of coupon types lets you target different customer segments and get more out of your marketing campaigns.
Couponing to win new customers:
Shape a new customer's journey with personalized discount codes:
- New customer discounts: offer your potential customers discount coupons
- Brand switching: get potential customers to switch to your brand
- Increase your awareness: make your online shop or store better known
- Exclusive sales: announce sales in your online shop with coupons
- Increase repeat purchases: after each order, give out a discount code for the next one.
Couponing for existing customers:
- Customer reactivation: win back former customers with targeted coupons
- Targeted clearance: sell off specific products with category discounts – tailored to your products & services
- Higher basket value: issue coupons with a minimum order value above your average order (using basket price rules)
- Revenue growth: increase purchase frequency and volume, and upsell
- Sales growth: limit discount codes to a specific period or make them valid only above a minimum order value
- Goodwill voucher: also offer coupons as a “goodwill voucher”.
Couponing for customer loyalty:
Combined with a customer card system, couponing is especially effective for loyalty – and many of our customers already use it this way, for example by emailing coupons to cardholders as a loyalty reward. Here are some ideas:
- Offer a discount code after an order to encourage further purchases.
- Offer discount codes in your online shop for your tickets, gift cards or special packages. Many people look for them specifically before Christmas, at Easter or for Mother's Day.
- Offer the coupon as a reward from your loyalty program or as a gamification reward (quiz points, levels or badges).
- Use targeted coupon campaigns to keep customers who are thinking of leaving.
Used well, coupons are a win-win: your customer is happy with the discount, and you're happy to hit your sales targets.
You'll find more details on how to use the gurado couponing module here.
Source: *according to Acardo “Report 2020” – the German coupon market.
