Blog
Research reveals coupons and offer codes improve personalization
Dan Slavin, CEO and co-founder of CodeBroker, examines research findings on coupon and offer personalization and why rretailers must maintain control to protect their bottom lines.
October 23, 2019
By Dan Slavin, CEO and co-founder of CodeBroker
In a world where marketers can literally get messages in front of millions of prospects with a click on a keyboard or smartphone, the ability to make those offers feel personalized has become increasingly important. Consumers want to receive offers that appeal to them. Marketers want to deliver those appealing offers. This requires a focus on personalized offers.
The data proves it. Virtually every respondent (99%) to a recent personalized offers study, "Coupon and Offer Personalization," said that if a retailer they shopped with regularly sent them a high-discount coupon for a product that interested them, they would be likely or highly likely to use that coupon.
Marketers widely recognize the power of personalization but are often challenged to achieve it.
What the data reveals
Our study gathered input from more than 1,100 consumers around the country to gain a better understanding of behavior and preferences related to personalized coupons and discount offers. Here are some of our key takeaways:
- High-value coupons and offers are nearly 100% effective in getting both existing and inactive customers back into a store.
- Consumers targeted with a high-discount offer from a retailer they haven't previously done business with are more likely to make a first-time purchase.
- Customers prefer receiving high-value coupons for one-time use over lower-value coupons that can be used again and again.
That's all good to know, but it can obviously be very risky for retailers to offer high-value coupons without the assurance that the security of those coupons will ensure that they aren't used more than once—or passed along to others and go wildly viral. In fact, 92% of our respondents indicated that they were highly likely to share a digital coupon with another person.
Personalization can be powerful, but retailers must maintain control to protect their bottom lines.
Controlling the offer
While technology now allows marketers to personalize offers, even varying them to reach specific target segments, they are still challenged by the security aspects of personalized offers — how to ensure the right people receive the offer and only the right people are using the offer. If customers can redeem an offer more than once, or people who the offer wasn't intended for can take advantage of it, marketers will be challenged to achieve the results they were hoping for.
While technology now allows marketers to personalize offers, even varying them to reach specific audience segments, they are still challenged by the security aspects of personalized offers — how to ensure that people don't use them more than once or prevent the coupon from going viral.
If customers can redeem an offer more than once, or the offer is exploited by hundreds, marketers will be challenged to achieve the results they were hoping for.
Single-use coupons and SMS marketing list building represent an opportunity here. The ability to offer a personalized promotion securely, while boosting your coupon redemption rates, not only ensures engagement with the intended target audience, but boosts measurability as well. Individual behavior can be tracked from acquisition, to engagement and retention, allowing for further personalization in the future.
Add a security component to offer coupon distribution and redemption to guarantee single-use redemptions for your mobile coupon marketing strategy.
Target your deep discounts and personalized promotions in a secure, risk-free manner, and measure results more accurately, for a complete personalization workflow.
