How to use promotional coupons to get the maximum conversion?

Coupons are rarely missed in any activities among products in all walks of life, and they play a vital role in them. They can be called the event master. In the activity scenarios of different platforms, the way coupons are used is very different.

I have seen some articles about coupons before, but the analysis is often one-sided. This time, the author collected various information and cases, combined with his own practical experience, and compiled a comprehensive analysis of coupons for everyone. I believe that after reading this, readers will have a general understanding of coupons, and with more practical scenarios, they can refine and apply them to projects.

Basic knowledge points about coupons

Basic properties of coupons

The basic attributes of coupons mean that no matter what type of coupons or how the activities are played, there will be some common attribute fields. To summarize:

Discount type : The discount type varies depending on how the activity is played, such as the common ones such as full discount, full discount, instant discount, merchandise vouchers, cash vouchers and interest vouchers, etc. Each type of offer serves the purpose of the event.

For example, full discounts, full discounts, and instant discounts can increase the average order value or promote conversions , thereby making small profits but quick turnover, and may also increase overall profits. Full discounts and full discounts are similar among these three types of coupons, and instant discounts often have no threshold and are smaller in magnitude, which has a greater effect in promoting conversions.

Merchandise vouchers are physical vouchers, which can specifically represent one pound of eggs, two pounds of bananas, etc. They are more tangible than ordinary coupons, and some generally popular commodities will be more attractive to people to collect them. Most cash coupons and interest coupons are financial products, and their purpose is to attract new customers and promote turnover.

Denomination : The denomination format varies depending on the type of discount. For example: 30 off for purchases over 100, 9.0% off for purchases over 20-100, 3 yuan instant discount with no threshold, 1 pound of eggs, 5,000 experience gold, 0.1% interest rate increase coupon, etc. The specific value depends on the subsidies that the activity can afford. In addition, whether coupons can be used in combination is also a property of coupons. Whether users must use the coupons in combination to make it meaningful depends on the usage scenario of the coupons and the subsidy intensity.

Validity period : The validity period is also determined by the purpose of the activity. The general rule is: it is valid N days after receiving it, valid from X/X/X to Y/Y/Y. Some coupons are accurate to the second.

Number of hair styles : According to the intensity of subsidies and the purpose of the game, it is divided into: unlimited issuance, limited issuance, and limited issuance and release in batches, and even the issuance will be restored after expiration. The significance of releasing it in batches is that it can promote activity and conversion over multiple days rather than concentrating it on one day or a period of time.

Applicable users : Depends on the purpose of the activity. For example: for new or first-time users, promote new conversion and retention ; for VIP users, promote VIP purchases and continuous purchases; and the other is common to all users.

Applicable platforms : The platforms that the coupons are applicable to can be divided into: platform-type general coupons, applicable to a certain merchant or store, and applicable to multiple merchants or stores. This is the scope of application of the coupon. Platform coupons, store coupons, merchant coupons, etc.

Applicable products : Depends on the products included in the activity. For example: specifically applicable to a certain brand of goods, a certain category of goods, or multiple series of special items.

Collection frequency : can only be collected once, once a day, and can be collected again after use. These methods are flexible and need to be determined based on the subsidy situation and the goals to be achieved. Each approach means different subsidy inputs and effect outputs.

Distribution method

The way of issuing coupons is also very particular and should be determined according to the goal to be achieved. Here are a few examples.

System release :

Based on certain product logic, the system automatically issues coupons to users when they meet certain prerequisites. This method is highly targeted, has a high trigger rate, low collection cost, and is the most effective.

• Coupon return after ordering : After the user places an order and pays, a coupon will be returned to the user, with the goal of enabling the user to place an order again. As for the face value of the coupon, it can also be set based on the subsidy affordability and the average customer spending threshold.
• Random distribution : This is a way to avoid subsidizing high expenditures. Users can be informed of the random range of coupons to stimulate them to collect them, and the actual denomination after collection is determined randomly. However, this random distribution method is very unreasonable. The effect it actually produces is far worse than if the system had an algorithm that determined the quota based on the individual. For example: the score for new users is higher; the score for active old users is lower. This will make the effect more clear.
• Scenario-based distribution : For products in some consumption scenarios, when users browse to a certain module, coupons will be issued, and red envelopes will fall from the sky. A coupon package layer will pop up to inform users how many coupons they have received, thereby promoting orders. It may also be a certain time period, such as the afternoon tea time period of Meituan Takeout and Ele.me. When users come to the APP, they will be given coupons for afternoon tea.
• Distribution to specific groups of people : Coupons with larger denominations can be issued separately to new customers.

Actively receive

After the user sees the coupon, he/she can collect it manually.

• Receive directly : When you see the coupon, just click to receive it. Although this cost is high, the utilization rate will be higher. Therefore, in the product details page of most e-commerce apps, coupons are collected by manual clicks.
• Share and receive : The red envelopes shared by Meituan Waimai and Ele.me are the Nth largest, commonly known as fission red envelopes, which are the best examples.
• Points redemption : Generally, points can be redeemed for coupons in the membership center. The threshold and face value discounts for such coupons are relatively small.
• Customer service compensation : Some users who have been harmed on the platform can obtain platform subsidies through customer service channels , such as e-commerce platforms, food delivery, etc.
• Targeted push : Distribute coupons to a specific group of people.

Anti-brushing mechanism

It is essential to prevent fraudulent collection of coupons. A common method is to limit coupons to N times for the same account and the same device. Both an account and a device must be available. Let's take the opposite logic - assuming that only one of them is restricted: if only the account is restricted, one device can be used to change accounts to receive the coupons; if only the device is restricted, one account can be used to change different devices to receive the coupons, both of which will lower the threshold for malicious coupon swiping. How is the Web restricted? In fact, there is no good way. Usually it is just an account and a cookie, and the settings only have an account. cooKie is not very reliable.

Features and gameplay of coupons

Features of coupons

As a function, coupons have their own characteristics. Here are a few:

1. It does not affect the product and the product itself remains unchanged. The price, inventory, etc. of the product will not change due to the use of the coupon, which is the highlight of this coupon. There is no need to modify the active products individually for maintenance. If you switch to other flash sales, you will need to set the product price and event inventory.
2. The cost of sharing and dissemination is low. The coupon itself can be shared as a benefit point to attract users to claim it, which has a certain effect on attracting new customers.
3. Strong business applicability. There are various types of coupon discounts. It can be said that as long as there is a demand for an activity, the coupon can meet it. Its diversity supports a variety of activities
4. Vouchers can exist independently. As mentioned before, coupons can be circulated independently and are not affected by the products. Can exist independently in the activity page. For example: a coupon collection center where independent coupons are gathered together.
5. Overlap between vouchers. General activities cannot be enjoyed cumulatively, but if the coupons are set to be cumulative, they can be flexibly combined to allow users to enjoy benefits.
6. Receiving requires cost. This is the disadvantage of coupons. But this disadvantage can be avoided in some scenarios, such as automatic system issuance. But the selection voucher is also a cost when using it, of course this can also be selected automatically.

Relationship with promotional activities

1. Events often affect merchandise. For example: promotional price, promotional inventory, etc.
2. There is mutual exclusion between activities. There are more mutually exclusive situations, but it does not exclude the situation where activities can be shared. If the operation is willing, it can be implemented in the product.
3. Activities and products are more closely linked. The existence of an activity requires commodities to reflect it. It is hard to imagine what effect an event would have without merchandise. No traffic , no conversions.
4. Vouchers and activities can often be shared. This is one of the closest relationships between coupons and activities. Whether it is a discount or a flash sale, you can enjoy it together with the coupon.
5. The cost of participating in the event is lower. Compared to the costs involved in collecting and using coupons, the activity itself is reflected in the product, so the product is the activity and does not require additional operating costs from users.
6. The activities are more stimulating and infectious. The UI rendering of the activities can be seen in various activity topics, which stimulates the desire to buy. However, due to the limitations of its own style, the voucher does not have the characteristic of being movable.

Types of coupons and how to play

• Brand coupons : limited to products of a certain brand. For example, you may see a limited edition clothing item on Taobao .
• Category coupons : Coupons can only be used on products in a certain category.
• Single product coupon : limited to certain single products.
• UPC coupons : Use UPC codes to identify products that are eligible for coupons.
• Newcomer coupon : a coupon suitable for newcomers to collect and use.
• Fan coupons : Some stores require users to follow the store before they can receive and use them.
• VIP coupons : Only VIPs can receive and use them, which grant VIPs rights and interests.
• Mobile APP coupons : Users are encouraged to download the APP to receive the coupons, and are guided to enter the mobile APP from the Web or M site.
• Reward coupons after placing an order : As mentioned earlier, this is to encourage repeat orders.
• Invitation rebate : After inviting new people, the inviter will be rewarded with coupons. At the same time, it is often sent to the invitees along with the newlyweds.
• Coupons for purchases over a certain amount and discount coupons : These two have been mentioned above and will not be repeated here.

Productization of coupons + case analysis

Purpose

As mentioned above, the type of voucher, denomination, number of vouchers issued, subsidy amount, etc. all depend on the purpose.

When creating a function like coupons, the first thing to consider is its purpose. For example, to attract new customers, you need new customer coupons; to promote conversions, you need to add coupons for various scenarios and products. To encourage repeat orders, you can use order rebate coupons. The purpose of coupons is often determined by the operational objectives, and coupons are, after all, still within the scope of activities. The operation department will sort out the key aspects that need to be promoted for the current product, come up with goals, and then set the goals for the coupons based on them. Of course, the goal of the voucher is not just a goal, it also needs a budget to support it.

Budget

Any purpose requires budget consideration. The number of users who receive coupons and the number of coupons used must be estimated in order to calculate the approximate subsidy.

As a PM, you also need to consider the budget and have a certain understanding of the budget formula and the data required in the formula.

Building a bond

This is of course the backend system of the coupon. The content required to create a coupon includes at least the basic knowledge points about the coupon mentioned above.

Get coupon

As shown in the picture above, this is the coupon redemption activity page and coupon redemption center.

Adding a coupon entrance to the event page can increase the conversion rate of event page traffic. The coupon center is a relatively stable coupon entrance. To improve the efficiency of user coupon collection, coupons can be classified and users can directly access applicable products after collection. This is coupon purchase.

There are more scenarios where there is an entrance to coupons on the product details page, which is a very good way to promote order conversions. In addition, there will also be one in the shopping cart, for example, the shopping cart of Taobao APP has such a design.

Check Ticket

This more common function is nothing more than: checking the available coupons and their applicable scope and validity period, historical expiration, used coupons, as well as prompts for new coupons and coupons that are about to expire. And the coupons here can be clicked directly to access the applicable products.

use

• Coupon purchase : For example, brand coupons, category coupons, single product coupons, etc. can all use the product logic of coupon purchase to achieve a convenient and fast coupon experience.
• Shopping cart : If users often forget to collect coupons, or the entrance for collecting coupons is not perfect, then adding an entrance for collecting coupons at the location where users are about to check out can encourage users to convert from shopping cart checkout, which is also a way to improve the experience. The reminder to add items to the order will also have a positive effect on the effectiveness of the coupons.
• Checkout page : On the order submission page, users can choose coupons. If the coupon is not available, the reason for the unavailability needs to be indicated to reduce user confusion and customer complaints and improve the shopping experience.
• Cancel order : Coupons should be returned to users regardless of whether they have paid or not. This is a design idea for a good experience.
• Refund : After delivery, if there is any after-sales refund, whether the coupon is refunded will vary depending on the product. But the refund was the best experience. This is generally not refundable.

Voucher Structure

When designing the initial coupon system, PM must have a long-term vision and have a grasp of what the product will do in the future. Make architectural designs that pave the way for the future based on the existing foundation.

To support business flexibility, the coupling of different coupons must be reduced. Otherwise, when supporting business functions in the future, the underlying architecture will be changed due to historical issues.

When the coupon is first released, the status, user groups, products, etc. must be designed well. The lower-level functions should be more flexible. We refuse to patch the coupon system, as this will inevitably expose problems at some point.

In addition, coupons are often used during big sales, so attention should be paid to the stability and real-time performance of the system.

Voucher statistics

After the goal of the coupon is determined, all functions have been developed, and the coupon has been launched, the next step is to see the results. The data related to the vouchers are summarized as follows:

Amount of distribution and amount of receipt

This is very basic coupon data, which is also the basis for calculating other related data.

Coupon order volume

By looking at the number and proportion of coupon orders, we can see the user's dependence on coupons. Of course, this dependence is also a certain degree of dependence, because many orders may be placed and paid even without coupons.

Subsidy amount

All coupons that have been ordered and paid for must be accumulated to arrive at the total amount of platform subsidies.

Actual profit

For coupons issued with subsidies, the actual profit needs to be calculated. The use of coupons can promote small profits but quick turnover and user conversion, so the final profit needs to be calculated based on the increased revenue minus the subsidy amount. Whether there is profit to be made.

Attract new customers

Regardless of whether there are special sharing and new member coupons, coupons often have a certain effect on attracting new customers, so collecting data in this regard is also an interpretation of the effectiveness of coupons.

Summarize

There is a lot of knowledge about coupons, and as the number of operating methods increases, coupons will also be improved to adapt to new operating goals. Only by constantly summarizing the knowledge points about coupons can we continuously improve our understanding and application skills.

The above is a comprehensive analysis of coupons. I hope it can bring some substantial help to everyone who is interested.

The author of this article is @中人人 and it is compiled and published by (Qinggua Media). Please indicate the author information and source when reprinting!

Product promotion services: APP promotion services Advertising platform Longyou Century