The value of vouchers and how to properly leverage it
Vouchers, codes, coupons – is there any difference? Although each of these words has its own distinct meaning, in the era of digital commerce, this division began to blur, and in most online stores, each of them is used interchangeably.
Let's start from the very beginning, i.e., from the definition:
A voucher is a document that entitles its holder to use certain services and products.
Code is a string of characters used to identify the right to items or services (often unique).
A coupon is, for example, a promotional leaflet that entitles the holder to a discount on a purchase or a free gift.
Basic methods of customer activation using vouchers
The most common way to use vouchers is through simple user activation actions. Their mechanics focuses on providing a discount code entitling you to take advantage of a usually one-time and personalized promotion.
Below, we'll go through several scenarios designed to activate your users for specific actions.
The reward for installing an app is one of the most popular "give and take" scenarios using promo codes. The discount incentive rewards the user for having to go through the app's installation and setting up an account, which can be difficult for some users.
Discount codes are not only the domain of online shops. Customers of brick-and-mortar stores are also eager to take advantage of personalized promotions. An SMS message is a very simple and effective way to encourage them to visit the store again.
It is especially important to communicate with customers who, for various reasons, do not want to repeat a purchase. Communication with the churn segment is the most important from the point of view of sales, as the costs of acquiring a new customer are still incomparably higher than the costs of maintaining them.
Discounts given to customers are nothing more than a cost that the seller incurs to encourage the customer to buy. To minimize these expenses, it is worth limiting the recipients of such promotions. One of the ways may be to select, with the help of prediction, those who are most likely to use vouchers in the near future.
Another example is a solution that improves the business efficiency of discount scenarios. When customers buy a certain product, they qualify for a discount on their next transaction, as long as their chosen product forms a "pair" with their previous purchase.
Sending a discount coupon does not mean that the customer will receive it, read it, and eventually use it. Very often, messages sent via email are overlooked by customers or classified as less important by filters and do not reach the main inbox. To increase the effectiveness of such campaigns, you can remind the user of the surprise they received in the email.
The voucher mechanism can also be used to create scenarios involving external partners. Such cooperation, in addition to the business relationship between the owner of the customer base and the company providing the reward, also offers significant value to customers. Cleverly chosen gifts that harmonize with the overall brand image build a positive customer experience and brand sentiment. Any use case, even the simplest, can effectively distribute such rewards.
Check the basic configuration of discount coupon distribution via SMS in the Use Case - Personalized SMS with discount coupon. The distribution channel and the content of the message can always be expanded depending on your business needs and the idea of campaign implementation.
Thanks to their simplicity, discount codes are an ideal tool for quick and effective sales support, regardless of the channel in which the business serves the customer. Whether online or offline, the number of scenarios that can be prepared using them is extremely vast.
In the article above, we present a few of them. You can find more in our use case database. But it doesn't end there, we encourage you to find your own solutions and modify the examples presented. Each business is different, so it's worth testing and improving each idea to continuously increase its effectiveness.