Uniqodo looks at coupons and how advertisers can provide an enriched consumer experience, build brand loyalty and go beyond discounting.
We all know that discounting is traditionally seen as a necessary evil. Other brands are doing it, so we need to compete. Customers love them, so it’s hard not to offer them. But in truth, it’s not the sexiest part of an advertiser’s marketing strategy.
However, let’s not think of this in terms of discounting, but instead, the method to issue a discount. If you take the humble coupon code, make it 100% controllable, pack it with advanced capabilities and use it to unlock promotion experiences for customers, we get into something far more exciting.
We help our clients solve some of the big challenges associated with coupon codes and busting some of the myths associated with coupon code promotions and campaigns.
Together with Commission Factory, we work to help advertisers who have concerns or preconceptions about the use of vouchers and coupons to dispel myths that are often associated with discounting. When done right, the results can be excellent.
There are seven objections that we often hear when it comes to coupon codes and discounting. To help give advertisers an alternative perspective to these objections, we discuss how to do things differently in the pursuit of driving customer and business outcomes in our Reimagining the Coupon Code webinar. The most common objections include:
Myth #1 - Codes get leaked
Myth #2 - Publisher limitations
Myth #3 - Codes equal discounts
Myth #4 - Discounting cheapens us
Myth #5 - Codes damage margins
Myth #6 - Can’t do codes
Myth #7 - Discounting is a downward spiral
We touch upon a few of the myths in this webinar wrap-up below, however, advertisers can also download the Uniqodo ‘Busting the Promotion Myths for APAC’ guide.
Codes Get Leaked
We’ve either all experienced codes leaking or have been the cheeky customer who tries out every code they can find on the web in pursuit of an extra incentive to buy. Codes can leak from a CRM channel, or affiliates can copy promotions from approved publishers. Unless an advertiser wants a campaign to go viral, leaked codes can erode profit margins, disrupt other marketing activity and devalue the brand. The simple solution? Unique, single-use codes.
Uniqodo started seven years ago to solve this exact challenge. By turning an advertiser’s codes into unique codes, we help protect offers for only the intended publishers and audience. No more leaking, unwanted sharing, and campaign budgets are fully covered to deliver the results advertisers intend.
Codes Devalue Brand
Used in the right way, and decoupling the notion that a code always has to deliver a discount, we can get creative with promotions to create engaging experiences for customers that actually build brands, not devalue them. A code can be used as an access key, where targeted customers can get exclusive or early access to content on your site. It could be an exclusive deal, but it could also be a new product launch that they get early access to or an exclusive product or service that only certain customers can access. The value we’re delivering here isn’t necessarily a discount, it’s the experience of being a VIP, which can be as powerful as a monetary incentive when used in the right way.
Code technology limitations
The Downward Spiral of Discounting
Starting by going directly to market with discounts can be a downward spiral. By leading with discounting, advertisers create customer behaviours and expectations that are hard to maintain long-term. But that does not mean advertisers can not continue to use coupons in a far more targeted way.
Coupons do not always mean that an advertiser needs to offer a discount or money off. Once an advertiser has cracked the control issue, they can turn the coupon code into a vehicle for anything they want. They can use it instead to reward their audience, offer loyalty points, power referrals and unlock exclusive experiences. Discounts still make up a significant percentage of the promotions we manage for our clients. Still, because we distribute them in a more controlled way and include advanced criteria to help advertisers validate customer behaviour and product eligibility, they can do more for the brand and bottom line than other performance marketing activities.
Using codes is well-established customer behaviour. Rather than unwinding learned behaviours, advertisers can use it to their advantage as an abundant channel to do more for their strategy.
Advertisers who are open to reframing their perceptions on coupon codes by making it controlled, filling it with advanced criteria, and using it as a vehicle to do more than just offer standard discounts will be able to experience their benefits.
Coupon codes are an established industry both from a consumer and publisher perspective. If an advertiser is not already running code campaigns or has frustrations with the channel, finding the right way to leverage them is an untapped opportunity.
Reimagining the coupon code can unlock their unlimited potential beyond providing a discount, including increasing basket value, creating FOMO, unlocking early access to new products, driving new customers, building brand loyalty, and raising brand awareness.
Whether using a third-party provider to control and distribute codes, the coupon code can work in harmony with an affiliate channel.
Thank you for all the questions from the attendees and those who registered. You can download the Uniqodo Q&A Session for the webinar and you can also download our 'Busting the Promotions Myth in APAC' guide.
To find out more, contact Commission Factory or contact us directly at Uniqodo.