How to use coupon activities to increase user conversion rate?

Whether offline or online, where there are transactions there will be activities. In order to enhance users' perception of activities and thus form purchase conversions, giving users discounts in the form of coupons has also become one of the ways to influence users' consumption decisions and stimulate user consumption.

This time, we mainly analyze and summarize the coupons issued by online strategies. Why is no one using the coupons issued? How to use coupon subsidies efficiently? I hope that after reading this article, it will give you some inspiration.

Why choose coupons instead of physical prizes?

The essence of coupons is that merchants take advantage of price differences and provide users with corresponding discounts through discounts, full-amount discounts, and deductions . When users use coupons, they will go through the following path: merchants issue coupons - users receive them - place orders for consumption.

So why not give users discounts directly, but instead stimulate them to make purchases by issuing coupons?

When issuing coupons, the key is to receive them and deduct them when placing an order, which can give users the feeling of getting a bargain.

At the same time, compared with direct price cuts, using coupons to generate order discounts, exemptions and other discounts can enhance users' perception of prices.

Finally, using coupons can also effectively achieve brand exposure. For example, in the takeaway red envelopes of a certain takeaway platform, the discounts received by users can be shared with other users in the form of red envelopes, which invisibly utilizes the sharing behavior generated by the user's social relationship chain to achieve brand exposure.

So, in summary, in some transaction business activities, compared with physical prizes, operators are more inclined to use coupons to stimulate users' payment conversion.

Coupon distribution strategy

Adopt corresponding strategies according to different scenarios, groups, consumption situations, and final goals. The focus here is on setting up coupon strategies based on three factors: groups, consumption situations, and final goals:

1. Attract new customers and stimulate their first purchase behavior

For new customers, the purpose of coupons is mainly to reach new users with potential consumption intentions through price discounts, and to issue coupons at higher prices than those for old users within the budget.

As bait, in addition to the price incentives, the coupon copy highlights the privileges and discounts for new customers, and through the method of packaging coupons of various categories, new users can truly feel the price benefits.

Usually when setting the validity period of a coupon, the corresponding time is set according to different business types. For general e-commerce promotional products, the coupon setting will be shorter. If it is a service order conversion, a longer time can be set accordingly, and the longest time should not exceed half a month.

At the same time, since new users have little knowledge of the platform, you can promptly inform users of discount information through App push, marketing SMS, etc., and push notifications can be made again before the coupon expires;

(When issuing coupons, choose different channels to conduct delivery experiments and select the best conversion channel)

2. Issue coupons to users with different consumption frequencies to increase consumption frequency (repeat purchase) of old customers

When increasing consumption frequency among old users, the RFM model (recent consumption (Recency), consumption frequency (Frequency), consumption amount (Monetary)) can help us better implement the coupon distribution strategy.

Users of different businesses may have significant differences in consumption frequency and amount.

Taking our service consumption business as an example, users whose consumption frequency is 4-6 times in the past 30 days are considered high-frequency loyal users. For such users, other methods are needed to provide long-term incentives and increase the frequency (points, membership cards), which I will not elaborate on here.

For users who have consumed 1-2 times in the past 30 days, the strategy adopted is mainly to issue a coupon that can be used to make another reservation for service within 7 days after each consumption. It can offset a certain order amount (the coupon validity period is controlled within 7 days, which can achieve a rapid frequency increase and reduce the subsidy cost to a certain extent). At the same time, in terms of setting the amount, through different price conversion rate tests, select a range in which the coupon conversion rate can reach an optimal value as the coupon subsidy amount.

At the same time, when distributing coupons through strategies, one issue that needs to be noted is to avoid user overlap between different strategies. At this time, it is necessary to focus on the user's consumption cycle and ordering process, and decompose the strategy based on the user's life cycle and the behavioral route of the user's ordering process, so that the strategy can be dispersed in each life cycle of the user to avoid overlap between strategy subsidies.

(RFM model, different businesses and categories will have different user value positioning)

3. Recall lost users

The key to issuing coupons to recall lost users is to select the time period of lost users . The longer the period, the greater the corresponding recall cost will be. Different types of businesses will have different definitions of the period for lost users.

Taking our business as an example, we recall lost users who canceled their service orders.

First, we analyze the distribution of users’ cancellation reasons , excluding users who canceled their orders due to personal subjective reasons and are likely to place an order next time. We also exclude other users who did not provide any specific reasons and canceled their orders more than three times within a certain period of time. We select 60-day, 30-day, and 15-day churn cycles for marketing SMS coupon recall.

By comparing the recall data of three cycles, we will eventually select a time period with a better churn cycle for recall. In the recall copy of the coupons, we can highlight some of the latest promotional activities and make the copy more lively.

If we can classify users' consumption behaviors through their previous consumption data, we can design different copy for different consumer groups when planning recall copy, thus improving the accuracy of the recall.

4. Select a time with lower GMV within a certain period of time to issue coupons

According to your own business characteristics, choose a time point within a cycle when a certain category generates the lowest GMV to issue coupons.

For example, the GMV generated by a certain category of goods on Wednesday is lower. To address this situation, you can issue coupons or discount coupons for this product every Wednesday, which can only be used on Wednesdays. This is also a way to solve the problem of low GMV in a certain period of time by issuing coupons and combining strategies.

The above is a summary of some methods of combining coupon distribution and strategy. There are three taboos in the distribution of coupons: no threshold restrictions, no user restrictions, and no category restrictions.

Although profit has driven the emergence of a large number of "wool-grabbing" users, the loyalty of these users can be effectively improved by introducing a series of strategies in the distribution of coupons.

Author: Crab-

Source: Crab-