“THE SECRET OF CHANGE IS TO FOCUS ALL OF YOUR ENERGY, NOT ON FIGHTING THE OLD, BUT ON BUILDING THE NEW.” – Socrates
Overview of Digital Coupons
Traditional coupons (FSIs) represent a gigantic percentage of the coupon pie, 91.2% of distributed coupons, and 50.8% of total redemptions*.
Yet Digital Coupons’ revenue growth and out-sized share of redemption rates paint a bright, glowing future. Digital Coupons (print-at-home, mobile, social, and downloadable coupons to a loyalty card) represent less than one percent of total coupons distributed but command 10% of all coupon redemptions*.
Why are digital coupons impacting the industry?
The current digital coupon process is convenient and easy for the consumer, and they likely hold a fortified place in your brand or products’ digital marketing strategy. A consumer prints or emails your coupon to be redeemed by them at the nearest location, usually done through a popular destination site.
That’s it – straightforward and functional.
Change Adds Value To The Coupon Process
But how could you add more value along the digital coupon equation? What is limiting the value of digital coupons for brands and organizations? Two things:
- Customer Data
- Social Interaction
When a customer uses your coupon on another site, the interaction (the data) between your brand and that customer is missed and lost forever. Did they interact with your Facebook Fan page, did you glean individual or campaign level data? If not, the current strategy is a one hit wonder, satisfying, but not ideal.
Big Data and Social Media are mega, established trends influencing business insights and marketing strategy. Your digital coupons in 2015 could combine coupons, data, and social. Not unlike the following campaign:
This campaign is a mobile promotion that uses Facebook as the control and data collector. Facebook app permissions acquire data from consumers by asking yes or no, versus filling out a form, the former tactic being over 90% effective. Meaning, when a customer is claiming a coupon and is required to give personal information, the yes or no method is successful more than 90% of the time.
The following information is captured by the brand before the offer is claimed; public profile, friend list, email address, relationships, birthday, interests, current city and likes.
coupons + social + data = more value
Three Recent Value-Adds to Coupons and Social Promotions
Uniting digital coupons with social media and the hidden value of big data is a powerful ingredient. An ingredient that delivers three value-adds to your digital coupon strategy:
- Facebook API integration with ESPs
- A longer coupon lifecycle
- Game-changing consumer and campaign level data
Technology improves fraud prevention and similar issues even further. Since coupons are already digitized, the next step is placing them where millions of your customers are conversing or listening, including social channels like Facebook, or through media partnerships with socialized digital entertainment like Pandora Radio.
How does it give your coupon a longer lifecycle?
The data gathered from the claiming process extends the lifecycle two ways. First, the individual who claimed the coupon can now be remarketed to in the future with email. Secondly, the campaign-level data can be analyzed for business insights and deployed in strategic initiatives elsewhere.
The New Coupon Experience
The current digital coupon process is three stepped. (1) consumer finds, (2) consumer prints, (3) consumer redeems. The new coupon experience will follow this process:
- Consumer finds on Facebook, Web, or Mobile
- Consumer authorizes Facebook App Permissions detailing demographic and psychographic data
- Consumer accepts/claims/prints
- Businesses gather limitless campaign and customer data, unlocking more value through remarketing and the discovery of useful insights
Want to improve your coupons in 2015? Request a CoupSmart.com demo today.
* NCH’s 2013 Year-End Topline Coupon Facts