Building a successful and meaningful marketing strategy requires a number of key insights around your defined target market, be it B2B or B2C.
These insights are typically gathered from multiple data inputs, research and a good understanding of your market.
A number of the elements that make up your marketing strategy are reflected in the diagram below:
Vouchers or coupons used in a vacuum or as simple discounts as part of your promotional activity will be short-lived.
Vouchers or coupons should be part of a long-term, meaningful strategy to enhance value for your customer.
As part of your overall marketing strategy, you need to build up a database of your customer’s demographic and psychographic profiles. These should be in a POPIA compliant manner and enable your business to do meaningful analytics and research.
HOW DO YOU ACHIEVE THIS? Contact us for professional advice and assistance.
As part of this “deep understanding" of your customer, you will be able to build a profile of social, economic living standards (“SELS”) so that your promotional tactics are focussed, personalised and targetted.
When this is achieved [remember we can assist you with data build, storage and target marketing], you will then be in a position to embark on a strategy using vouchers and coupons as part of your defined promotional strategy.
Vouchers and coupons play essential elements for:
Customer acquisition
Customer stimulation
Customer retention
Customer cross-selling
These are some of the reasons why all businesses should adopt a voucher and coupon strategy.
VOUCHERS AND COUPONS INCREASE OVERALL REVENUE
Over 31 billion digital coupons were redeemed worldwide in 2019. [Statistica Research Sep 2019]
The South African gift cards and incentive cards market is anticipated to grow by CAGR 11.4%, increasing from R14,6 billion to R22 billion between 2019 and 2023. [Research and Markets: Sep 2019]
The prepaid card business is expected to reach R36 billion by 2023.
These are all substantial contributors to marketing and promotional strategies and are an essential part of the marketing mix.
VOUCHERS AND COUPONS ENCOURAGE NEW TRIALS
Many customers are prepared to trial a new product if it’s associated with a voucher or coupon. Discounts can change a buyer’s attitude towards an “unknown product or service”. When launching new products, a voucher campaign can be of great assistance.
VOUCHERS AND COUPONS CREATE HAPPINESS
Research indicates oxytocin levels increase in recipients who receive vouchers. In addition, the recipient’s heart rate and respiration improve and they become less stressed. [2012 Nov Claremont Graduate University, Prof Pzaki]
PROMOTIONS INFLUENCE PURCHASE
THE POWER OF ‘FREE’ HAS A GREAT PSYCHOLOGICAL IMPACT CAN BE HIGHLY TARGETTED AND FOCUSSED
BRINGS IN NEW CUSTOMERS
ENHANCES BRAND AWARENESS
BUILDS CUSTOMER LOYALTY
MINIMISES CUSTOMER CHURN