The world of commerce is heading for extreme personalization driven by the growing number of tech-friendly consumers craving for hand-made offers, matched to their needs. Follow our list of the most powerful promotion types in the era of personalization and keep up!
In today's trade, every retailer feels competition breathing down their neck. There's always someone ready to compete with you for your services or products. And, when standing out with inventory alone is already becoming harder, coupons do the job; depending on the strategy, coupon campaigns are able to:
- attract new customers, leverage local markets
- maximize profitability (cross and up-selling, geo-fencing)
- strengthen relationships and build a regular audience
- track customers and find behavioral patterns
Equipped with QR codes and supported by modern software, personalized coupons are more accessible than ever. For brands, it’s a chance to extend their reach via multiple global channels. For consumers, it brings convenience and omnichannel experience regardless of time and place.
Popular closed-loop cards are a chance for small companies to compete with global giants. They attract customers you wouldn't have acquired otherwise and bring profits even when remaining unused.
Digging into the stats, we found two significant clues:
- When more than 50% of gift cards owners spend more than the loaded balance, the effort put into personalization to deliver more relevant offers increases average overspend.
- The growing popularity of digital gift cards causes that mobile technologies should be a priority.
What decides the success of digital gift cards? Supported by marketing automation, they retain the personal character of traditional gifts, combined with the convenience of mobile technologies:
- Unique codes enable retailers to track behavior and prompt more relevant offers
- Personal details create a sense of an individual, tailor-made gift
- Balance is easy to utilize at any time providing a seamless journey through a sales funnel
- Retailers can reach buyers via many local and global channels (email, blog, landing page, social media)
- QR codes make gifts go along with mobile technologies
- Digitization eliminated the chances of losing the card and minimized the cost of production
What decides the success of a referral program? Reward. To understand the point of referral programs, we need to get into some stats. From all customers willing to recommend your services, only 35% will actually do so. Sad, isn't it? That's why companies run referral programs offering incentives for referrers and their friends. The rewards increase the chances of Word-of-Mouth, priceless in acquiring new customers. Don’t know what reward to choose? Experiment! Launch a referral program with multi-level reward schema to:
- reward customers according to their engagement
- test which rewards works best in particular customer segments
Clear and concise rules and a catchy idea can win a huge referral audience. Don’t have socks in your inventory? You can add a personalized coupon with an attractive discount and put it into a short email message. Simple gifts and rules make people more willing to respond.
Cart-level discounts tempt customers with potential savings available at their fingertips. These promotions drive customers most effectively into spontaneous buying decisions. While many of them add more to their cart to get the discount, the average order volume is growing. Cart-level discounts are also perfect for Flash Sales and a/b tests. Without much effort, you can define clues for future campaigns and sales.
Keeping regular customers is way cheaper than attracting new ones. That's why loyalty campaigns are well worth your time and resources. Effective loyalty programs tailor the sales funnel with advanced personalization and attractive incentives. Creating the sense of an individual approach and exclusive offers maximizes retention rate. But, remember what companies often forget - loyalty programs are for... loyal customers. It's impossible to keep all your customers and turn them into regulars.
The key to a successful loyalty program is to find the most loyal, and profitable customers. Having them in your reach, do your best to keep them, instead of just chasing every attracted client.
“Loyalty programs are meant for your best customers. These are the top 20% of all of your customers, who can generate 70% more revenue by spending more over a longer period of time.”