5 reasons you should offer coupons/promo codes for your return customers
While you may already realize that coupons and promo codes are used to attract new customers on a local, national, or international level, you may not know all the reasons why they are an excellent strategy to use for return customers, as well.
It is also beneficial to consider the customers who may have once bought from you on your website or app. Here are five reasons why you should customize a coupon and promo code strategy just for those who have done business with you in the past:
1. It draws them back into the fold, including those who have abandoned their shopping carts
There are many reasons why customers leave and take their business elsewhere, but primarily it involves your competition that may be offering more value and a better overall experience. Other reasons may also exist, but these two are the major ones and can be addressed through your coupon strategy. First, you’ll want to work on your overall customer experience to determine if you should fix the offline or online experience, including security features, shopping, checkout, and payment systems. Once you have made the necessary tweaks, you can use coupons or promo codes to entice them back and try out your improved shopping and purchase experience while also delivering additional value and reward for trying you out again. They may just be won over and decide to remain loyal from that point on.
2. They are likely to pass the coupons and promo codes onto their social circle
In today’s social media world, you can opt to make the coupons and promo codes shareable, which can turn your return customers into brand advocates who then share what they bought and the fact that they got a deal with their online social circle. This gets you in front of a much wider target audience where your return customers are doing the work for you by sharing information and incentives to see what you are all about. In this way, your return customers become influencers on your behalf, providing greater return on your investment.
3. You can get updated information on their interests and purchase behavior
Working with your return customers who may not have bought anything for a while provides a way to learn more about them. How they respond to the coupon offer, when they buy, and what they buy can be compared to past purchases to see if there is any shift in their purchase behavior. This data can be valuable in planning future marketing campaigns because you may not have realized that their tastes or needs had changed. You’ll be able to collect and analyze this new information that you might not have received if you hadn’t used coupons or promo codes.
4. It’s an opportunity to gauge the impact of new marketing campaigns
Like the data you gather related to customer behavior, you’ll also be able to assess how marketing campaigns are received tied to various strategies you have implemented. How customers respond to the promotions associated with those coupons tells you what time of year or season gets the greatest response. You may also be introducing a marketing campaign related to a special event so a coupon could be the perfect tie-in to generate more revenue compared to previous campaigns for the same event. The difference in response can tell you what is working and what may still need work.
5. It creates an image of exclusivity and illustrates high regard for your customers
Everything you do within your marketing strategy should also reflect the further development of the brand image you want to project and create in your customers’ minds. While coupons can be associated with a discount brand, using them thoughtfully and marketing these deals as exclusive to returning customers shows a higher level of regard and appreciation for these customers and generates that feeling of setting them apart from the crowd. This sense of exclusivity can be tied to your overall brand image and go a long way toward enhancing the special connection you make with your customer base. This can also increase their loyalty over time.
In every way, coupons and promo codes are designed to increase your revenue while solidifying customer loyalty, including bringing back customers that might otherwise have been lost. Additionally, it enhances your brand image and introduces you to other potential new customers when your team of influencers passes on these deals. You’ll experience a significant return on your investment that is reason enough to add coupons and promo codes as carefully planned tactics throughout the year.