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    How to » Business » How to Use Discounts and Coupons to Target Customer Segments?

    How to Use Discounts and Coupons to Target Customer Segments?

    Posted on August 13, 2020 | By Alex Jones


    There is no denying that the juiciest promotional offers of discounts and coupons are hard to resist. As the owner of an online eCommerce company, you need to be able to learn how to effectively create the perfect discounts and coupons for each segment of your customers. For most consumers in eCommerce websites, finding good deals and other deals is an essential part of what makes eCommerce customers excited about it.

    Discounts and coupons offered across online, if done properly, will help a startup eCommerce company increase its customers and sales. If not done properly, the result can be terrible. In this article, we are hoping to guide you in creating effective campaigns. We are going to cite the step-by-step process of developing an effective promotional campaign to help your eCommerce increase engagement and profit. Hopefully, through this guide, we can help you grow your company!

    How to use discounts and coupons to target customer segments

    Step 1: Segment Your Customers

    Segmenting your customers is the process of aggregation of your customers into groups based on similarities. This will allow you to create promotions and advertisements that specifically target each segment.


    By the time you start planning to offer discount coupons or promo codes, we assume that you have already created a database of clients’ information. Most of the time, this is composed of previous customers who have ordered before or those who have subscribed to your newsletter.

    Using filters, you need to create segments of the entire population of your customers. You can do this by grouping them using personal information like age, sex, and background. You can also segment your customers based on their transactions with your eCommerce, like based on loyalty points, the number of coupons redeemed, and new or first-time customers.

    As a tip, when segmenting your customers, always go back to why you are doing this. The objective is to create targeted promotional offers and even advertisements. Using this goal will help you develop the most appropriate campaigns for discounts and coupons.

    Step 2: Develop Separate Campaigns for Each Segment

    As mentioned, the objective of segmenting your customers into subgroups was to allow you to create targeted discount offers and advertisements. Each promo would be targeting a segment of your customers. Students, for instance, may not have the money to purchase even discounted goods online. Perhaps a more generous offer may be more appropriate. Different age groups, for example, use the internet differently. Younger people will be much more likely to use apps like Snapchat and Instagram, while over thirty professionals may be using Facebook and LinkedIn. Customers with Loyalty points may be more receptive to your offers of discounts as compared to other customers.

    Step 3: Promote and Disseminate the Offers of Discount Coupons and Codes

    The most important thing here is to make sure that the discount coupons and codes are properly disseminated to your customers.

    The following are the methods of disseminating the discount coupons and codes:

    1. Email – It is important to remember that for Gmail, a person can only email 500 email addresses within 24 hours. If you are sending out the promo codes and coupons via email, perhaps it is best to look for an application that can help you send out emails in bulk.

    2. Newsletter – As mentioned, we are assuming that you have already conducted the due diligence of creating a databank of your mailing list. Use the Newsletter subscription of your eCommerce website to disseminate the promo codes and discount coupons.

    3. Online Coupon and Codes websites – Many websites collate and resell promo codes and discount coupons. These websites are great in luring customers into your eCommerce website.

    As for advertisement, online ads offer the best way to reach out to your clients. While snail mail still exists, right now, online ads are the best way to generate buzz about your company and discount offers. Do not ever think about sending out ads for your eCommerce website using literal home mailboxes. Use the online platforms to promote your discount offers—email addresses.

    Going back to the segmenting of customers, you can use targeted ads to attract new customers. Because your ads had been created for a specific segment of your customers, you can use these to attract customers of the same backgrounds as the segments you created. You may use affiliate marketing to generate traffic to your sales page. You may also hire social media influencers to talk about your promotional offers. If you are looking for an affordable way to promote your offers is to send the ads

    Important Tips in Developing Discount Coupons and Codes

    Now that you know how to create how to use discounts and coupons to target customer segments, you need to learn a few things that will help you in its success. Here are some tips to ensure the success of your activities:

    1. Make Sure to Clarify to Yourself Your Goals and Intentions.
    2. From the very start of the planning stage for the development of the promotional offer, you must have a clear idea of what you hope to accomplish in this endeavor. Do you want to attract new customers? Do you want to reward frequent shoppers to your eCommerce? Do you want to make your eCommerce site viral? Ask yourself to clarify your actual goals in starting these campaigns. Let this objective guide you in creating the promotional offer.

    3. Review Your Financials and The Value of Your Promo.
    4. Can you honestly sustain the type of promotional offer that you intend to use? It is essential to check your profit margins as well as your enterprise’s loan-to-value ratio. Forgetting to review your financial capacity to conduct the campaigns can be detrimental if your promo offer is worth more than the amount you are most likely to receive from the purchasing customer. Of course, you cannot create an offer that has little value to the customers. They will just ignore it if they deem the discount is too trivial.

    eCommerce makes selling easy and is a highly competitive sector in business. Small businesses may find themselves competing with small and big companies from around the world. With this kind of dog-eat-dog world of businesses, smart strategies to gain new customers while keeping the old ones are important. Offering promo offers for discounts and codes is a great opportunity for this exactly. Hopefully, through this article, you have learned a few things on how to launch a successful promotional campaign for your eCommerce website. Use these tips to guide you in delivering the next big discount deals online.


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