We all know offers are designed to incentivize customers to move toward a brand goal, but what happens when your customers don’t want them?
Discounts, rebates, seasonal offers and bundle deals (BOGOs) for retailers might work well in most instances (people want to save money and the happy feelings they get from doing so can increase the perceived value of your brand), but like any other tactic, can occasionally encounter roadblocks.
This takes us back to the question at hand: How can you increase the redemption rates of your brand offers? Our curiosity led us to reach out to Ian Sells, founder and CEO of RebateKey, an e-commerce platform offering direct access to thousands of discounts and deals from retailers.
How to increase offer redemption rates
To kick things off, we decided to start at the root of the issue — figuring out why consumers ignore incentives from brands they’d normally interact with. One answer? A lack of personalization and relevance.
“The primary reason why consumers do not redeem brand offers is that they are not relevant to them. The biggest mistake many brands make is that they offer a one-size-fits all brand offer instead of offering a more personalized one to their customers,” Sells said. “It's important that brands make use of new technologies to learn about customer behavior and buying patterns to gain insights on the kind of offers they would likely say yes to.”
Personalization is simply another way of intentionally serving your customers; once you know what matters to your audience, you’ll know what brand offers they’ll want to cash in on. And like Sells said, you don’t have to do it alone. Partnering with platforms or people (e.g,. influencers) who have touch points with your audience can help you reach customers even faster.
“If you’re using coupons and discounts, you can use trackers to check where your customers get these coupons from. This gives you an idea which marketing strategy works,” said Sells. “This also works well if you partner with influencers or affiliates. Knowing which source gives you the most leads can help you with your future campaigns.”
Getting your customers to redeem your brand offers is partially about getting them to the checkout line and also about making sure they actually see your incentives.
“Many offers do not reach customers. Automated newsletters may be beneficial for your active customers but not for everyone else. Your offers should be visible if you want them to be redeemed. In this digital age, it can get harder and harder to compete with the noise,” said Sells. “One of the contributing factors is that many people have already become immune to ads, promos and offers — hence the need for a more personalized strategy. When you give them offers that match their needs at the moment, it’s more likely that they’ll take hold of it.”
Need more evidence that providing valuable information to consumers is key for seeing a return on your incentives? Not only will the relevance of your offer increase the likelihood you’ll meet your goals, but it’ll also positively influence how consumers look at your brand.
“Relevant content has a higher conversion rate simply because it answers/solves your client’s pain point or pressing need at the moment. Moreover, ensuring that you provide relevant content to your consumers adds credibility and authority to your brand,” said Sells. “When consumers trust you more and when it matches their needs, then they are more likely to redeem the offers you give.”
So, how do you establish relevance and get your customers to redeem brand offers?
Timeliness is very important. Redeemable brand offers posted during peak seasons and major events are more likely to get viewed, clicked and redeemed. You can also use tools to check for the days and times when your audience is more likely to engage.
Leveraging time for better results can also look like creating a sense of urgency around your promotions with limited-time offers or pairing them with customers who just reached certain shopping milestones (those who just signed up, recently purchased, or are about to check out). Urgency tactics create immediate action in consumers and make them more likely to redeem offers.
Not everything goes according to plan — offer strategies included — but that doesn’t mean all hope is lost. With strategies and tactics like the ones above, your brand can connect with consumers and increase redemption rates.