When it comes to coupon marketing, measurement and evaluation are key. In fact, measurement and evaluation are key with just about everything when it comes to running a business.
Evaluating your marketing performance will guide future marketing initiatives and help you achieve your business goals. Measuring the effectiveness of your marketing strategies and frequently adjusting them will help bring in more customers, increase sales, and grow brand awareness.
This principle leads to a lot of questions. How do I measure my success? What exactly am I measuring? How often should I measure it? How do I know when to shift gears?
We’re here to address those.
So What am I Measuring?
Every business has different goals and objectives they are trying to achieve. For example, a newer business may be focusing on gaining exposure to build their brand, while a more seasoned business may care only about an increase in revenue.
Whatever your business objectives may be, it is crucial to establish these before running a campaign. Any campaign will fall flat without a clear vision of what you are trying to achieve.
Having a clear vision will allow you to look back post-campaign and measure your success. Did you achieve what you were hoping to, or did you hardly make a dent? If you didn’t make much progress towards your goal, you can adjust future campaigns to obtain a different outcome.
It all starts with a goal.
I have a goal, now what?
Once you have your goal, its time to run your campaign. If you have never run a coupon marketing campaign or would like some tips to begin, check out our Master Class: Creating a Coupon Marketing Strategy.
You can research and find guidelines about what kind of coupons have been proven to work and how to distribute them, but essentially your strategy will depend on your business. Who is your target audience, what message are you trying to send them, what are your goals? All of these questions will influence how you execute your coupon marketing strategy. You can not just throw a coupon out there and expect it to work, you need to strategically curate a strategy that is unique to your business.
Here are some factors you will want to determine.
- What kind of coupons to distribute. i.e BOGO, a percentage off, free shipping, etc.
- How long do you want the coupons to be valid? Be sure to include an expiration date so that customers won’t be bringing them in 5 years down the road.
- The distribution method- social media, email marketing, etc.
- Decide how you will track the coupon
The last bullet point is crucial- decide how you will track the coupon. If your strategy is not measurable, you have no way of knowing what is working and what isn’t. Analytics are a key component of evolving and fine-tuning your coupon marketing strategy.
Why are analytics so important?
Maybe this year you ran a 30% off promotion for your new summer lineup, and then later in the year you did another 40% promo for the Holidays. You may have thought the 40% off promo would do better because it had greater value, but after evaluating how many people took advantage of the coupons and how that affected your sales you found that the summer promo brought in a lot more traffic and revenue. Now you know that summer is the best time to run future promotions. This information is valuable, as you can now take a more targeted approach for future promotions.
If your promotion was not measurable, the sales would have come and gone with no knowledge of how well it worked. You would have had no data to work with when executing future promotions.
How do I measure my promotion?
The key to measuring your coupon marketing strategy is to ensure your coupons are trackable. Its great to track different styles of coupons, different discount offerings, or different distribution methods. This can be done in may ways- let’s look at a few.
This is the old-fashioned method, but is still tried and true. Anytime someone brings in a coupon, put it in a little baggie by the counter. If its a mobile coupon that they show you to redeem, keep a tally.
Include a promo code unique to that specific coupon/campaign and enter it in your POS System each time it is redeemed.
There are quite a few mobile apps out there that allow you to offer coupons to your customers. One of these is 2for1.
After signing up your business on the app, you can add your discounts. Right when you add them, they will immediately become available to over 100,000 app users.
The best part of 2for1 is the detailed analytics that track your redemptions. When users would like to user your offer, they simply click “Tap to Redeem” and then show the screen to the sales representative. Right when a user views or redeems an offer, that information is recorded. In your dashboard you can view the number of views and redemptions by offer, giving you immediate feedback about how your customers are responding to your discounts and how effective they are.
This may be suprising, but the average coupon redemption rate is 1%. Yes, only 1% of consumers who are sent coupons redeem them. While this statistic seems suprisingly small, it’s good to be aware of so that you can measure your redemption rate against the average.
In each of these scenarios, you can calculate your redemption rate by dividing the number of people who redeemed the coupon by the number of people it was sent to. Multiply this by 100 to get a percentage. If yours is over 1%, you’re doing a pretty good job!
Example: You send out 100 coupons and 2 people redeem. 2/100=.02 x 100= 2%
As you implement these strategies to analyze and adjust your coupon marketing strategy, you will come closer and closer to reaching your business goals.