by webSaver
March 14, 2024
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Consumer packaged goods (CPG) brands understand the proven ability of Online Coupons and Cashback Offers to drive sales, increase consumer engagement and enhance brand loyalty. However, to achieve these objectives a number of important factors need to be considered when planning your couponing strategy, as we discussed in detail in our last blog post on this subject.
In this article we’re taking a different approach by providing specific best practices concerning five of the most important decisions brand managers need to undertake when conducting an online coupons or cashback offers campaign.
Let’s explore these five best practices in more detail and see how you can put them into action in your next coupons and cashback offers campaign.
1. Align face value discounts to your campaign goals
When determining the face values of your online coupons, it’s important to align them with your marketing and financial objectives. Brand marketing objectives for a Couponing strategy may include: Continuity, Repurchase, Trial, Brand Switching and Pantry loading, and they imply different face value discount amounts. Then there are financial considerations such as profit margins, competitive pricing, and others.
Offering discounts that are too steep may devalue your products in the eyes of consumers and erode profit margins. Conversely, coupons with insufficient face values may fail to attract attention or motivate purchases. Brands must strike a balance between offering attractive discounts that support their marketing objectives yet not be so aggressive that they hurt the perceived value of the brand and its economics.
2. Keep offer terms simple and visible
Simplifying the terms and conditions of your coupon offers is essential to ensure ease of use for consumers and maximize redemption rates. Avoid complex or restrictive terms that may confuse or deter shoppers from redeeming your coupons. Clearly communicate the eligibility criteria, redemption instructions, and any limitations or restrictions associated with your offers.
By keeping offer terms simple and straightforward, CPG brands can enhance the user experience and minimize potential barriers to coupon redemption, resulting in higher conversion rates and customer satisfaction.
3. Include a picture of the product and offer expiration date
Enhance the visual appeal and credibility of your coupons by including high-quality pictures of the featured product alongside the coupon details. Product pictures help consumers visualize the product and reinforce the value of the discount. Incorporating the expiration date prominently in your coupon design reduces confusion and helps consumers understand the urgency of the offer.
By combining product imagery with expiration date information, CPG companies can create compelling coupon offers that resonate with consumers and drive conversions.
4. Offer shoppers a choice in coupon medium and type
Provide flexibility and convenience to consumers by offering them a choice in coupon medium and type. Allow shoppers to select their preferred coupon delivery method, whether it’s printable coupons, cashback offers or mail-to home coupons.
Brands may also offer a variety of coupon types that appeal to different segments of their consumer base, such as percentage discounts, BOGO offers, free samples, or loyalty rewards. Tailoring coupon offerings to shopper preferences increases engagement and redemption rates.
By offering consumers a choice in coupon medium and type, CPG brands can accommodate unique consumer preferences and maximize the reach and impact of their campaigns across channels and demographics.
5. Keep the valid periods short
Shortening the valid periods of your online coupons and cashback offers can create a sense of urgency and encourage consumers to act quickly. Limited-time offers compel shoppers to take advantage of the discount before it expires. This time-sensitive approach can drive immediate sales and boost campaign performance.
Additionally, shorter valid periods help CPG brands manage inventory levels and control costs by limiting periods of excessive demand due to promotions.
Implementing these best practices when planning and executing your next online coupons or cashback offers campaign will significantly increase the probability that it will succeed. Understanding all the factors that must be taken into account when executing coupon strategy, as well as the proven best practices for each one, is our specialty.
We’ve been working with the leading global CPG Brands for well over a decade helping them to generate value from online coupons and cashback offers.
Let’s talk so we can discuss how we can put online coupons to work for your brand.
With over 10 years leading the Canadian online coupons marketplace and 150 Million coupon issued we know coupons. We’ve worked with 90% of Canada’s leading consumer packaged goods brands providing them with the online coupons and cashback offer solutions that generate real value for their business. Whether your strategic objective is customer acquisition, customer lift (Increased transaction size and frequency) or customer retention webSaver can help.
