In today’s digital age, businesses constantly seek new ways to drive revenue and reach a wider audience. With so many online stores selling similar products and services, businesses must differentiate themselves to remain competitive. While businesses pass a host of benefits to consumers, like Buy Now, Pay Later (BNPL), contactless delivery, etc., one powerful tool that has remained constant is offering deals and offers.
Sales, discounts and Offers have been around from the beginning of advertising. Earlier, what used to be promoted using print media and pamphlets is now available on digital platforms. Digital coupons have played a significant role in discovering new brands and have been adopted as a strong marketing strategy, especially by new-age D2C brands. So it is unsurprising that 95 per cent of shoppers in India spend more time online searching for the best offers. But what exactly is the appeal of digital coupons, and how can they help businesses scale?
One of the most appealing aspects of digital coupons is their convenience for both customers and businesses. Customers don’t have to worry about keeping track of physical coupon cards or paper coupons; instead, they can just enter a code when checking out from an online store or website to receive the discount. This makes it easier for customers to take advantage of offers and promotions, encouraging them to shop more often.
On the business side, digital coupons are easy to disburse, and their performance can be tracked in real time. This allows businesses to adjust their strategies based on customer behaviour and preferences. Sampling with digital coupons: One of the most significant advantages of using digital coupons is the ability to drive sampling. Sampling is an effective way to get new customers to try your products and is particularly important for new or niche brands
looking to increase awareness.
Digital coupons can incentivise customers to try new products and services without significantly investing. This can be particularly effective for businesses that offer products or services with a high price point, making it more accessible for customers to try them. Additionally, customers are more likely to try something new if they perceive it as low risk, making digital coupons an effective way to drive sampling.
Reducing the dependency on marketplaces and building 1st party data
While digital coupons can be effective, offering discounts through marketplaces does not increase brand loyalty. Brands, in fact, compete with other offers from brands, and a price-conscious customer often purchases the cheapest one. Also, a customer who sees brands on a marketplace is less likely to remember the brand name or return for future purchases. Instead, businesses should focus on offering digital coupons through channels that can return them to their owned D2C property. This will allow them to maintain control over the customer experience and increase brand recall, plan future CRM, etc.
Driving LTV
While digital coupons can be an effective tool for driving awareness and brand recall, brands must also leverage them to target specific segments of their customer base, such as new customers or loyal customers, to increase the lifetime value of their customers. Studies have shown that customers are more likely to purchase from a business if they know an incentive is involved.
In other words, offering discounted prices through digital coupons can help drive business growth by increasing customer engagement and loyalty. Around 85% of online shoppers are willing to share data for discounts.
Leverage deterministic audience insights
Brands can create tailored offers according to their customer’s lifecycle and reach a large base by leveraging deterministic audience insights. We at Paytm have seen significant growth in Offer Ads on the back of increasing digital payment adoption. Paytm has promoted offers to millions of its transacting users across brands and helped them acquire new users and even repeat transactions.
For example, The Good Glamm Group partnered with Paytm Ads to drive conversion and sampling for their sub-brand My Glamm. Paytm Ads created properties across the user journey to engage and convert them to My Glamm customers. The targeted audiences were given a My Glamm promoted offer upon completing a transaction on Paytm. This created an impulse to avail of the offer and make a purchase. The users were then directed to the My Glamm website to choose products with similar value. It also helped the brand to showcase other products from the website to add to the cart and upsell.
As a result, the campaign saw an increase in the average order value and helped obtain a high investment return. The brand was also featured in the Deals and Hot Deals section to encourage quick purchases and retarget the users who have previously engaged with the brand.
In conclusion, digital coupons are a powerful tool for businesses looking to drive revenue and increase customer engagement. By using digital coupons to conduct sampling, increase awareness, and improve brand recall, businesses can improve their bottom line and build long-term customer relationships. To maximize the impact of digital coupons, businesses should focus on partnering with platforms that offer data-driven targeting with solutions that redirect the users to their channels and use them strategically to promote your brand effectively.
To know more, write to us at ads.marketing@paytm.com
