01 Mar
In today’s marketplace, there are so many marketing collaterals that brands can use to attract customers to purchase their products and services. From discounts to cashbacks, the options are endless – what is most important is determining which works best for your brand.
One of the most popular methods that many brands today are already using is vouchers. They can be used to:
- Attract new customers
- Retain existing customers
- Increase sales of specific products or services
According to UpStart Commerce, about 93% of shoppers use a coupon or discount code throughout the year. This statistic shows that consumers are very receptive to the concept of vouchers, which further proves that it is an effective strategy that you should implement as part of your brand’s marketing initiatives.
In this article, we will cover the following topics:
- What is Voucher/Coupons strategy?
- Benefits of offering vouchers to your customers
- Physical or digital vouchers?
- How to implement your own successful voucher strategy?
What is Voucher/Coupons Strategy?
Basically, a voucher or coupon strategy uses the idea of offering discounts or price cuts. These discounts can in the form dollar value or a percentage discount and can be distributed online (as text codes, barcodes or QRs) or offline (as physical vouchers).
The vouchers, if used effectively, can be a very versatile marketing tool. They can also be used in conjunction with other marketing efforts, such as promotions or loyalty programs.
Overall, vouchers can be a great way to incentivize customers to make a purchase and drive revenue for the business. In fact, many studies have shown that vouchers help brands increase sales figures. One study published in the Journal of Marketing found that vouchers can increase sales by up to 30%. The study also found that vouchers can lead to an increase in the average purchase amount, as customers tend to buy more when they have a voucher.
Benefits of offering Vouchers to your customers.
- Reward your customers
Offering vouchers to your regular or loyal customers can be a way to show your appreciation and gratitude for their loyalty and continuous support. The customers will feel special and happy when they see such gestures and become even more loyal to your brand.
- Grow your loyal customer base
Since vouchers reward your customers for every purchase they make, they would want to make use of these vouchers to the maximum. Gradually, your brand can create your own loyal customer base that keeps growing with every voucher you send them.
- Recover lost customers
When customers do not return, it might not be entirely because they did not like the product/services that you offer. It might be because your brand might have drowned amidst the noise and distractions in the market. Vouchers are an excellent way to keep your brand on the top of their minds, reminding them that you are ever ready to welcome them back anytime.
- Increase sales & revenue
Vouchers can increase sales and revenue for a business by encouraging customers to make purchases more frequently and at higher volumes.
- Beat the competition
A voucher with an enticing promo can lead to FOMO (fear of missing out), especially when there is cumulative value, which will prompt consumers to stick to your brand instead of going for your competitors.
Physical or Digital Vouchers?
In 2023, definitely digital vouchers are the way to go. To understand the reasoning behind this, let’s take a quick look at the table below:
To understand more about the software that can help you implement a digital voucher strategy, take a look here.
Tips for a successful voucher strategy that boost sales
1. The voucher strategy must be well-planned with defined goals
Voucher strategies work best in combination with other tactics. Offering random vouchers may bring in customers once or twice, but the support may not persist in the long run.
Vouchers should be a part of well-planned customer loyalty program to reward them for their continued patronage. You can plan that regulars are able to enjoy vouchers with basic, one-time usage vouchers, but those who have signed up as a member of your loyalty program will be entitled to more vouchers with better rewards. Again, this will create a FOMO (fear of missing out) effect and will encourage them to sign up as a member.
Before you launch your voucher campaign, think about all your customer segments and their expectations. Different customer segments have different preferences based on their interest, demographics, locations etc. In order to receive maximum conversions, each segment must receive vouchers that resonate with them best.
Take a hair salon as an example. There will be different customer segments like millennials, Gen-Zs, high spenders, regulars (the ones who visit every month), etc.
2. The vouchers should be easy to claim
Already have a voucher strategy in place, but consumers are not claiming them? The issue could be on the process of claiming the vouchers. Would they need to travel all the way to your physical store to use the vouchers? Do they need to physically show the voucher or a digital version would suffice? In short, make it as easy as possible for your customers to use your vouchers.
Take Awfully Chocolate’s program as an example. The moment customers scan the QR code, they will get the voucher in their accounts within seconds.
3. Vouchers should have expiry period
Vouchers without an expiry date are as good as not giving out any vouchers. No expiry means there is no urgency for the customer to use the vouchers. The expiry of the vouchers must be strategically defined at the planning stage itself. Things to consider would include the following:
- How many vouchers can one customer claim per purchase?
- What should be a good expiry date for various vouchers and customer segments?
- Can the vouchers be immediately used for the current purchase or is it only applicable from next purchase onwards?
At Advocado, we have helped hundreds of brands with their voucher strategies. We are more than happy to organise a free consultation session to help you ace your voucher strategies and other customer retention efforts. Reach out to us here.
4. Make your customers aware about the vouchers
So, you have given your regulars what they have been waiting for, but are they aware of it? From our observation, many businesses inform their customers via emails whenever a voucher has been given. However, you shouldn’t rely only on emails since they do not always get opened right away (or ever if they get stuck in the promotions or spam folder).
One way to make sure that your customer knows about the voucher is to use SMS or text messages. Comparatively, an SMS has an open rate of 98% while emails have an average open rate of only 22%. Moreover, the click-through rate of SMS is as high as 36%. Despite these amazing figures, SMSes are still very underutilized amongst Singaporean brands.
One of Advocado’s most popular features is the SMS marketing broadcast here. It enables you to automated your SMS notifications and it’s super easy to deploy! Discover more here!
FINAL WORDS:
It should be apparent by now that vouchers are one of the most used and readily accepted marketing tools out there today. Offering a discount voucher sounds very easy to execute, but if the strategy is not done well, it can backfire and impact your products perceived value and overall brand image.
At Advocado, we have consulted more than 500 brands to develop their loyalty program, and most of them have vouchers as very important part of the overall strategy. Speak to our consultants today to design your own loyalty and voucher strategy!
