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How to Develop a Successful Coupon Marketing Strategy in 2021 and Increase Your Conversion Rates – The Ultimate Guide

Coupon Marketing Strategy in 2021. How to create a coupon strategy that works? How to launch a personalized coupon strategy? Coupon campaign ideas and distribution possibilities explained.

How to Develop a Successful Coupon Marketing Strategy in 2021 and Increase Your Conversion Rates – The Ultimate Guide

What is Coupon Marketing?

Coupon Marketing is about the use of coupon codes, vouchers and discounts to attract and retain customers, taking advantage of customers' interest in saving money on purchases.

Does My Business Need Coupons?

Coupons have already become sophisticated marketing tools, which not only drive sales, but also help in building brand image and customer loyalty. By using a modern infrastructure, coupon campaigns are also a source of tracking data for CRM, used to build and continuously improve your marketing efforts in general.

Do you need coupons? The answer is not up to your business model, market branch, or even your scale. Coupons can help almost every business type and size, if only a strategy is well thought through and planned accordingly to the current budget and clear marketing goals. The way you run coupon campaigns must be consistent with the way your marketing department works.

Even if your sales are mostly done offline, you can also use coupons, measure redemptions and ROI online. More about offline coupon tracking here.

Benefits of Coupon Marketing

I, the author of this guide, and you, dear reader, we are both consumers of various goods. I am sure that it's pretty exciting to find a good deal on a product that you want and need – I also believe that finding a bargain creates positive associations with the brand that offered you this item at a discounted price.
From the customer's point of view, receiving a discount is objectively a positive experience, but what about a business?

Here are some benefits that come with a well-planned coupon marketing strategy:

  • Accomplish your sales goals faster – coupons can be effectively used as incentives for customers to perform specific actions that help in achieving sales and marketing objectives. For instance, coupons can help you break even with items that just do not sell well on their own and to up-sell your offering.
  • Grow your customer base – coupon do not only impact the loyalty of your customers, but also increase the likelihood that they will refer your brand to friends and family more often. Why? it goes without saying that people respond emotionally to brands that reach out to thank loyal customers with coupons which
    undoubtedly helps build positive associations.
  • Beat the competition – if you find yourself going head to head with other brands, coupons are a great way to make your offers more attractive and popular in the competitive retail environment.
  • Get improved feedback – you can use coupons to encourage customers to take part in a short survey about your brand. Finding out more about potential pain points and fixing the usability of your site and attractiveness of your offering is worth a 20% discount.

Potential Threats of Coupon Marketing

Unfortunately, is it not all sunny and beautiful down here in coupon town. Coupons, just like any other business tool, carry some hidden risk that you need to be aware of before jumping head-on into discounting.

  • Excessive and constant discounting is likely to lead to possible brand damage with your company viewed as less desirable, not luxurious and cheap.
  • Increase in one-time buyers and reduced rates of brand loyalty among your clientele.
  • Tendency to generate traffic from price-driven shoppers and customer outside your target group, leading to less repeat sales, increased acquisition costs and burning of your promotional budget.

Luckily, with the right coupon provider, you can limit the potential harm by imposing several coupon redemption criteria. More on that later.

I Want Coupons. Where Should I Start with Planning a Coupon Marketing Strategy?

After choosing a coupon provider, you need to plan your strategy ahead. In the beginning, run small campaigns with diversified parameters, such as discount value and type, duration, discounted products, etc. Tracking the performance of every single coupon and campaign you launch is crucial to your success. You must be patient and aware that it will take some time and numerous experiments to figure out what works best for your business.

Quick Tip: If you run a small business, start from choosing one product and run 3-4 coupon campaigns from time to time with different discount types and values. Results will show you which of the discounts work best.

You can save your best performing rules settings for coupons with metadata, more about metadata and personalized coupons here.

Now, let’s dive deeper and take a closer look at coupon attributes that make them effective.


Create personalised coupon campaigns in no time, our dedicated team is ready to help.

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How should my coupons look? [Infographic]

Infographic on successful coupons
Feel free to grab our step-by-step guide to coupon design!

Here are some real examples of eye-catching online coupons done in the right way:

Source: Lane Bryant
Eye-catching online coupon example
Source: Evo
Example of a well-designed coupon
Source: Clearly Contacts Canada

You can strengthen the power of offered incentives once you learn how to use special occasions and holidays to run coupon campaigns. Besides official holidays, personal celebration days, such as birthdays and anniversaries, of your customers are also perfect for coupons. It’s a great example of marketing personalization and it is much appreciated by modern consumers.

When talking about a marketing personalization, we need to clarify some things in this matter.

77% of shoppers agree that discounts can influence where they shop.

How not to fail with Marketing Personalization?

You have most likely already heard that personalization is paramount to successful marketing. I guess you also heard, or even experienced, the overwhelming privacy hiccup amongst modern consumers. In these circumstances, using personalization in your coupon marketing becomes thin ice, which needs to be trodden upon lightly.

Grab our guide to promotion personalization here.

Does it mean it is better to give up personalization? Of course not. The key to moving freely in the field is ensuring a proper balance between “loss” of privacy due to revealing personal data, and benefits the consumer gets in exchange.

43% of consumers agreed that they would exchange personal data with companies to save money through personalized promotions, discounts or deals

To offer relevant deals, which let your clients save money, you need to first know your audience.

It Means You Should:

  • Define their spending habits.
  • Specify the time of biggest traffic to fit coupon timing.
  • Keep an eye on significant dates such as birthdays, anniversaries, etc.
  • Place customers in appropriate segments in your coupon system.

What is also important is to make a coupon deal relevant, that is to know what type of products/services your customer purchased. For example, there is no point in offering another winter coat to a customer right after he or she purchased one. There are things people buy daily, and other items that are only needed from time to time. Following this, your coupon marketing must operate with more sophisticated algorithms and it should be able to personalize offers in diversified ways.

Quick Tip: Remember that personalization cannot be managed manually at scale. Even in the beginning, it is worth it to invest in coupon marketing software that already supports coupon automation.

Traditional Coupons vs. Digital Coupons

As more and more customers expect coupons along with promotional messaging, both traditional retailers and e-tailers that don't deliver on that expectation, run a huge risk of losing customers to the competition. As highlighted by the ongoing COVID-19 crisis, the digitization of the retail landscape is inevitable. That does not mean that you cannot apply traditional coupons in a printed version somewhere in your funnel, but that digital coupons are simply a must, especially if your target group is tech-savvy.

What is the biggest difference between traditional and digital coupons?

In short, price. Traditional coupons require much more resources in terms of printing, sorting and distribution. In addition, they fail to offer detailed tracking that comes with digital incentives. On the other hand, printed coupons can work great with less tech-oriented audiences or for alternative brands who want to deliver unique and personalized coupons to their customer base. For instance, you can hand-made your coupons and sign each to make customer feel noticed and appreciated, but quite obviously, this is not a solution that scales effectively.

On the other hand, the biggest con of digital incentives is that market is full to the the brim with online promotions and discounts, and so, your coupons can get lost in the sea of similar promotional offerings.

Campaign ideas - Coupon Marketing Library

Product-Specific Coupon Campaigns:

  • When a customer purchases an item for the first time, send a 10% off coupon to the customer for a next product if she/he leaves a review.
  • Offer a $15 off coupon if a customer buys at least three products (The discount can be applied on an entire order or just on a particular product.).
  • Make a coupon with a $10 discount available if the price of any item in the cart is more than $100.
  • If a customer buys one product from a category, send an email with a coupon for another one 20% off.
  • Offer an additional 20% off coupon for specific items if a customer buys anything from the same category within the next two weeks.
  • Offer a $5 gift card if a customer purchased at least two items this month (spent a min. of $50).
  • Make a coupon for a more expensive variant of a product available in the price of a cheaper variant if the order value is more than $100.


  • While creating product-specific campaigns, you should be able to define separately which products/variants need to be in the cart and which of them will be later discounted.
  • This kind of campaign enables you to cross-sell and up-sell with coupons. They also help when some products get stuck in your inventory or when you introduce new products in your store.
  • For most of these campaigns, it is good to add a rule with “a required minimum spend.”

Sign-Up Discount Codes:

Send an email with a discount for a first order to every customer who signs up to your website or a newsletter. This type of coupon campaign is perfect fro growing your customer email list.

Seasonal Coupon Campaigns:

Keep an eye on customers’ birthdays and other special days to send wishes with an exclusive discount.

Note: You can use popups, widget forms, or a live chat.

  • Send customer a message with 50% off to celebrate a year since their first order or sign-up date.
  • Share a $20 gift card for specific items a week or two before the important day.


  • All of these campaigns require unique codes and additional rules that validate the redeeming person.
  • People buy lots of personalized presents and share many of their “important dates” with stores. It’s good to ask if they would like to celebrate it with your brand again, but it’s even more important to deliver something really appealing to their tastes, so they have a nice experience instead of feeling like someone is intrusively “watching them.”

Gamified Coupon Experiences:

  • Banner On Your Site: “Visit us three times this week to buy at least one item and get your surprise coupon.”
  • Banner On Your Site/Email Message: “Answer a simple question about our brand, share it on social media, and win a reward!” The reward can be a gift card, which (properly designed) looks like something special and unique.

Note: Gamification in promotions builds unique customer experiences that increase engagement, loyalty, and retention. We wrote about it here.

Support Issues:

Coupons can be attached to your answer to a complaint or live chat conversation. Every time something fails, you can counter the discontent by sending a surprise discount/gift card.

Note: For more details, you can read our ideas for live chat coupon campaigns with “support issues” included.

Cart Abandonment Coupons:

Send an email or SMS with 5% off coupon when a customer abandons their cart.

Note: This tactic, used by global giants, reduces the number of cart abandonments by up to 15%.

Revenue-Based Coupon Campaigns:

Divide your customer base according to the revenue they bring. Create exclusive discounts or gift cards for those who bring the highest profits.

Note: Remember to emphasize the individual character of the discount. For example, add a note to the message, “Only 2% of our customers receive this discount.”


Place a 40% coupon code on your landing page and enable customers to get a discount for the next 12 hours (Add a minimum order value to start discounting when your budget is safe.).

Note: Flash-sales are good to use to experiment and try out new campaign ideas.

Event-Based Coupons:

Send unique coupons if:

  • A customer pays his first order.
  • A customer canceled his order.
  • A customer’s profile was updated.
  • A customer performs another custom event.

Note: The way custom events work enables you to build coupons at every point of the sales funnel and use almost every interaction to trigger coupon send-outs.

Retention Incentives:

Each time a new customer places an order, you should trigger an automatic multi-level coupon send out, which delivers coupon codes to active users (from time to time).

Re-Engagement Coupons:

Send one coupon to a dormant user, and schedule 2-3 automatic reminders, e.g., 20% off the next order if you purchase within two weeks. When the code remains unused, reminders will notify user automatically.

Note: You can read more about coupon reminders in a separate article.

Purchase Frequency Coupons:

  • Send 10% off coupon if a customer placed two orders this month.
  • Send a 25% off coupon if a customer placed four orders this month.
  • Send a $30 gift card if a customer already placed at least six orders.

Note: To automate these campaigns, use dynamic customer segments, updated continuously along with customers’ activity.

Acquisition Coupon Campaigns:

  • Coupon code with 30% discount for all customers who place their first order today.
  • 20% coupon code for regular customers and an additional $5 discount if they share on social media.

Note: It’s good to add a required minimum order value and a rule “one redemption per customer.”

Referral Programs:

“Refer us to your friend to get rewards. Every time you referral code is used, your friend gets 10% off. The code can be used five times - 50% discount for next purchase. When you get to 10 code redemptions, you can get a special free product. Each week, a new product is awarded, so keep an eye on the ball!”

Note: Great referral programs are gamified, multi-layered experiences so be creative!

Loyalty Campaigns:

Give 10 points on customer’s loyalty card for each item bought. Points are exchanged for coupon codes divided into categories (loyalty levels). Plus, customers can get extra points by sharing your content on social media, writing reviews, or providing answers to the weekly quiz.

Note: Loyalty programs should offer attractive incentives and be good fun no matter how long a customer participates. This is why gamification is so widely used in loyalty campaigns; it maintains the customers’ interest.

Social Media Coupons:

  • 5% off coupon if a customer leaves a review on your social profile.
  • 10% off coupon if a customer adds a photo with your product and tags your store.
  • 15% off if a customer shares your post on their social profile.

Note: Social media sites are the right places for contests in which coupons can serve as rewards.

Location-Based Campaigns:

  • 20% off if a customer’s delivery address is Porto.
  • 10% off for a next purchase if a customer visited the new store in Berlin.

Here you can find 20+ ideas for sales promotions, if you need more inspiration.

Original Coupon Placements

Where you place your coupons matters a great deal. Based on stats and anatomy of a purchase funnel we've found that much of marketing space is wasted. Here are seven original coupon placements ideas for you.


Think about the number of invoices your company sends monthly. Is any of them is equipped with a coupon? I guess not. Thousands of invoices are coming across end customer's hands, no matter if you work in B2B or B2C model, small or a big company.

Before you put a coupon on the invoice, let your marketing team go through all orders assigned to a particular customer and define the most attractive circumstances for a buyer. Going ahead customer’s expectations and coming up with an attractive and personalized discount creates increases chances for another purchase and helps in building long-term relations.

Delivery tracking

Looking from the customer's point of view, delivery details are one of the most preferred types of emails. Why not supply these messages with personalized coupons? Email marketing requires clever ideas to catch customers attention and mailboxes are their private space which brands should treat very cautious. Most receivers won’t open any message after getting even one, considered as SPAM (or simply uninteresting).

Hand-made messages

This unique idea is inspired by Marina Auto Body who has expressed their appreciation by hand-made messages equipped with Starbucks coupons to their customers. Of course, if you have hundreds of users or more it is far unlikely you’ll be able to write them all. But still, you can use customer segmentation and focus on your best buyers. Defining profile of your ideal customer allows you to capture them amongst the crowd and treat them with the highest priority. Let’s say you gather 100 users who fit your target group best. Each year when their birthdays come, send them a card with a handmade wishes and personalized coupon. If you wonder if the effort is worth your time, taking care of regular customers is usually easier (and cheaper) than acquiring new ones.

Labels and price tags

“We buy with our eyes”, and coupons make things look better. Firstly, put a short note on labels about the value of a coupon or gift card which client gains while purchasing the item. During the purchase, the staff at a location asks for customers data and sends them to the coupon system. When data are in place, the system assigns unique coupon code to the customer automatically. Moreover, sent data are enough to create an automatic message with a coupon equipped with personal details and secured code from misuses. Ultimately, to make the process scalable, you need to ensure automatic coupon distribution.

Your SWAG pack

Years ago digital technologies have changed the shape of coupons. Let’s go back for a moment to the times when customers could really feel that they received extra value for free with a physical gift. Instead of cardboard vouchers, SWAG gadgets which participate in building your brand awareness can be turned into coupons. Including codes into the way you design your gadgets may take a little effort but the effect is definitely worth it. With real value in hands your brand is more likely to get customer’s attention and creates plenty of opportunities to acquire new customers.

Help Center and Documentation

There are two main advantages of placing coupons on your support pages. Firstly, it helps to involve users in building consistent and meaningful documentation. Secondly, you can show your appreciation, increase loyalty, and gain another source of purchases. Choose one article for a month/week and place a short note at the end of the page with a simple widget (in case of a big traffic use coupons just from time to time).

Coupon redemptions should be limited to one per customer per the entire campaign (one article), and similarly to the SWAG pack coupons, it’s good to set a limit for a total number of redemptions amongst the campaign to secure your budget in case of unexpected traffic.

NPS Measurements

If your company sends emails to measure client satisfaction (e.g., Net Promoter Score), incentives will help marketers to involve customers in building metrics and increase chances for better conversion. There are two simple tactics that companies can implement:

  • Send each user an invitation to share their opinion and emphasize the message with a coupon code.
  • Thank everyone who shared their opinion by sending the unique coupon. Coupons can be a part of a message with measures results or can be an automatic response to a received email.

How to Use Targeting in Your Coupon Marketing?

Coupons, even those made with lots of creativity, must be appropriately targeted to work effectively. The way you segment your audience must be consistent with shopping patterns and habits performed by your customers. At the very beginning, take your time and learn what habits and features shape your customers buying activities. Then, you will be able to divide the audience into segments and create campaigns accordingly to their preferences.

There is no customer segmentation that works for every business, or even for two different businesses. As every business and audience is unique, you need to dive deeply into the CRM and sales data to choose customer segments criteria.

To make it a little bit easier you may use following examples:

  • Segments based on the age of customers.
  • Location-based segments (postal code, city, state).
  • Segments based on the revenue per customer (revenue per month, revenue per year).
  • Customers divided according to their activity (a number of orders, already spent amount).
  • Segments based on favorite products/services categories.

Advanced segmentation used to target coupons typically requires a combination of many criteria, e.g., location-based coupons for regular customers could be targeted to the following segment:

"Promo codes for customers from Europe, who have placed at least three orders so far and signed up more than one year ago."

How to Market Your Coupons to Customers?

Having an idea and, finally, coupons in place are just half of the way to campaign success. The other half depends on whether or not you will be able to reach your target audience and put coupons in front of them. There are many channels you can use to promote coupons online. We have listed them for you, and also added some popular service providers.

Coupon platforms (e.g. RetailMeNot)

Thanks to websites like this, your coupons can reach customers who haven’t heard about your brand yet, but look for specific products. It is a chance to compete with the greatest giants and win new acquisitions.

Our Tip: Watch carefully to place your coupons in the right category as a mistake like this can be very painful and a waste of many resources.

Look at this post to find more coupon platforms ready to promote your coupon codes.

Emails (e.g. MailChimp)

Coupon marketing that is supported by emails has one significant advantage – it can be highly personalized. It means extra points to their marketing power and a chance to build 1:1 interactions with potential buyers. To start with email marketing and collect your list, you can also use coupons and offer one on your website in exchange for an email address.

Quick Tip: While acquiring email addresses always inform your visitors about how often you will email them and how they can quit their subscription. Showing respect for their privacy makes people more willing to share their data.

Coupon meets expectations
Nearly 50% of consumers like to get coupons and special offers on their mailboxes.

Landing Pages and Blog

There are numerous options here. You can use simple popups or web widgets and offer coupons in exchange for customer data. What is important in the case of popups is to make them eye-catching, not irritating.

Widgets on your landing page with discount coupons
Widgets on your landing page can help you to collect email list.

Social media

Social media are a free source of new and regular users. You can start with standalone code and publish it at different times of day/week. Results will show you when the traffic brings the highest conversion. Don’t give up too soon, social media, same as any other distribution channel, requires patience, lots of tests, and also creativity (Think about some contests, influencers or gamified experience).

Update: If you are thinking on using influencers for your strategy, read our post How to measure nano- and micro-influencer campaigns.

SMS (e.g. Twilio)

To make the most of SMS, you need to combine it with geo-targeting. SMS gives you a chance to catch customers right in front of the store, and a coupon makes the message a real incentive.

Read more about geo-located coupon campaigns in this post.

Live chat (e.g. Intercom)

The popularity of live chats is continually growing. We recommend it as a support tool, which is well suited to a modern, tech-friendly consumer, and also as a great marketing channel. Besides serving support requests, you can leverage your live chat to build an outstanding customer experience and boost sales. How? By launching flash sales, personalized campaigns, and other coupon ideas through a live chat. Need ideas? Here you go!

Omni-channel Coupon Experience

Each of these channels can be a good choice, but only when combined together can they really work great. Whatever channels you decide to use, keep in mind that people strive for genuinely omni-channel experience these days. It means they want a seamless journey when changing from online to offline mode. The way you sync your online coupon marketing with the in-store/offline experience decides its final efficiency and results.

How to measure if a campaign was a success?

Before we start to talk about coupon stats, we need to mention coupon limits. Only correctly secured campaigns  can be a source of relevant data. Here are most useful limits:

  • Only one redemption per customer.
  • Redemption is available only for the holder of a card.
  • Team members allowed to invoke redemptions are X, Y, Z.

Crucial for coupon and budget safety is a system that validates every redemption request and that won't allow customers to misuse it.

Secure coupons mean a safe budget and reliable data. Information carried with promo codes can give you credible clues about directions for your future marketing. Each redemption should be tracked and include the following details:

  • Customer who redeemed the code.
  • Date and time.
  • Coupon code, campaign, and redemption channel.

It would be tough to process this information manually at scale, so you need a ready-to-analyze metrics and stats systems updated in real time. What do we find the most useful?

  • Coupon types sorted by popularity in a particular period.
  • Coupon stats for single customers, presented separately.
  • Distribution reports with open rates (OR) and click-through rates (CTR).
  • Separate stats for each campaign (number of utilized codes, current balance, duration).

Of course, more means better here. The most important aspect is to analyze data you get up-to-date and to learn your lessons each time. Tracking and measuring performance is the only right way to build and develop efficient coupon marketing for any business.


Coupon marketing is much more than coupon campaigns alone. It requires a comprehensive management system ready to build Omni-channel experiences and 1:1 personalized relationships with your customers.

Our last tip for today? Modern software is valuable as much as its integration possibilities. This is why we always advise choosing coupon software with your tech team. With a flexible coupon system with API, you can plug promotional campaigns into your unique business model at every stage of the sales funnel.


Are you looking for the right coupon management software?

Let's talk


Achieve Your Business Goals With Personalized Promotions

  • Learn the top benefits of discounting.
  • Find inspiration for your next coupon campaign.
  • See the dos and dont's of coupon marketing.

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  • Learn how API-first platforms work.
  • See how international brand supercharged their promotions with API-first loyalty program.
  • Read how digital teams can benefit from API-first solutions.

Learn how Voucherify can help you leverage marketing psychology for more engaging promotions.

  • Learn what are the most popular marketing psychology tricks.
  • See examples of how other brands leverage psychology to increase sales.

Explore 10 Coupon Campaign Setups in Voucherify

  • Find inspiration for your next promotional campaign.
  • Learn the most popular coupon campaign setups.
  • See how to recreate the campaigns step-by-step in Voucherify.

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