By now we’re well aware that Online Coupons and Cashback Offers campaigns can generate significant value for CPG Brands in terms of customer acquisition, engagement and retention. And that Canadian consumers have never been more eager to look for and utilize online coupons and cashback offers.
However, things are not exactly that simple. There are a number of important decisions that have to made about the specifics of the campaign concerning Coupon Type, Redemption Value, Coupon Distribution, Consumer Data and many other factors that will dictate the potential success or failure of a campaign and how much value will actually be generated by Brands.
Below we address eight of the most important factors impacting the outcome of an Online Coupons or Cashback Offers campaign.
- Distribution Costs:
Distribution costs play an important role in the overall budgeting of coupon campaigns. Brands need to evaluate the expenses associated with distributing physical or digital coupons to ensure that the chosen distribution channels align with the target audience and provide a cost-effective means of reaching potential customers.
- Redemption Costs (Face Value + Service Fees):
Understanding and managing redemption costs is essential for evaluating the true impact and profitability of coupon campaigns. Beyond the face value of the coupon, service fees associated with third-party providers is crucial for an accurate assessment of the campaign’s return on investment.
- Offer Type (Buy X get Y $ off, BOGO, Buy 2 X get Y, Free Product):
The choice of coupon offer type significantly influences consumer behavior. Whether it’s a percentage discount, buy-one-get-one (BOGO) deal, or a free product with purchase, each offer type appeals to different consumer preferences. Brands should strategically select offer types that resonate with their target audience and align with their marketing objectives.
- Coupon Medium / Coupon Type (Printable Coupons, Mail to Home Coupons, Digital Coupons, Cashback Offers – all of the above):
The medium and type of coupon distribution impact accessibility and ease of use for customers. CPG Brands must consider the preferences of their target demographic – whether they are more likely to engage with printable coupons, receive them via mail, prefer digital formats, or opt for cashback offers. Tailoring the coupon type to consumer habits enhances the likelihood of redemption.
- Do You Want First Party Data?:
Collecting first-party data through coupon campaigns provides brands with valuable insights into consumer behavior, preferences, and demographics. Brands need to determine whether they prioritize building a database of customer information for future marketing efforts and personalized targeting.
- Do You Want to Build Your CRM?:
Coupons can serve as a catalyst for building a Customer Relationship Management (CRM) system. Brands should decide whether they want to leverage coupon campaigns not only for immediate sales but also as a means to establish and nurture long-term relationships with customers, fostering loyalty and repeat business.
- Multi Brand Offers (Scale) vs Single Brand Offers:
Choosing between multi-brand offers for broader market reach or single-brand offers for a more focused approach depends on business objectives. Multi-brand offers provide scale and exposure, while single-brand offers emphasize exclusivity and reinforce a brand’s unique value proposition.
- Stand Alone Offers vs Integrated at Your Brand Site:
Deciding whether to run stand-alone coupon campaigns or integrate them directly into the brand’s website is a strategic choice. Stand-alone offers may attract a wider audience, while integration on the brand site can enhance the overall user experience and encourage customers to explore additional products or services.
Careful consideration of these factors allows brands to optimize their coupon strategies, tailoring them to specific business goals and ensuring a more effective promotional campaign.
Work with the experts at webSaver that deeply understand all of these variables to execute a coupon campaign that generates real value for your brand.
Having worked with 90% of Canada’s leading CPG food brands and with over 150 Million coupons issued over the past 10 years we know how coupons and cashback offers can be put to work for your brand. Contact us today.