It’s a fact. Special offers drive sales.
Whether you’re giving out discounts, account credits, VIP perks or points; rewarding your customers is proven to increase your sales and customer loyalty. In fact, 91% of customers who redeem special offers say they would visit the same retailers again.
However, not all customers and not all special offers are made equal. As marketers it’s our job to spend each marketing dollar as wisely as possible for the highest possible RoI. And while special offers don’t cost cash up front, they do cost marketing budgets and revenue if they don’t provide a return.
Unfortunately, creating and tracking special offers is still very basic even in the digital world, limiting the potential that special rewards have to offer and robbing companies of a decent RoI.
Stop wasting rewards on bad customers
Another harsh truth is that not all sales are good sales, and not all customers are good customers. However, when it comes to incentive marketing and special offers we seem to forget this. This results in far too many special offers being sent to anyone who will use them in hopes of showing high redemption rates.
One of the key reasons marketers make this mistake is the lack of ability to track special offer usage and how it affects revenue and customer lifetime value. Without the ability to track, marketers can’t even tell they’re rewarding “bad customers”. Ask yourself, are your special offers just driving deal-hunters to purchase? Or worse, are your promotions just encouraging customers that would pay full price, to pay less?
It’s true that often when you target bad customers with your special offers, you will increase the number of sales you make. However, it may not increase the revenue you earn after discounts. A key example of this is often observed in the on-demand service industry, when sales volume are low and marketing gets told to blast broad, generic special offers to drive more sales.
Target only the right customers
So what happens when you get your hands on that perfect tool that lets you target the right people with the right special offer?
First, you will dramatically increase your revenue per customer, and avoid giving special offers to both discount hunters and full price customers. You will also be able to customize your offers to target different groups based on preferences, purchase behaviour or usage patterns. This will help to ensure that your special offers have the highest possible conversion rate.
Second, you’ll improve your company brand, image and customer loyalty. When you target your special offers and promotions, you reduce the amount of meaningless messages, notifications and emails you need to send out to your customers. This helps to create a luxury brand experience, and build stronger customer loyalty.
Increase RoI with Ease
Sadly creating segmented special offers is still out of reach for most organizations today.
Even if you have the developers, data scientists and the political support required, it can be a struggle to get the project prioritized. For the very few companies that can dedicate this many resources to these kinds of marketing projects, they often still take 6 months or more to launch, and end up lacking essential testing, reporting and security functionality needed to operate at scale.
In the digital world, those who test the fastest win. Segmented offers allow you to test highly personalized special offers and prove the RoI. This lets you weed out those bad special offers, increase the reach of good special offers, and create an even more personalized user experiences.
Segment your special offers with SaaSquatch
To make it possible for all digital companies to target their special offers, SaaSquatch created Segmented Special Offers inside the SaaSquatch special offer management platform. With this new functionality, marketing teams can rapidly build intelligent user segments, and extend unique offers to them across all devices and channels with no development required.
If you’re looking to maximize your RoI from special offers reach out and ask for a demo or take a look at our mobile rewards programs.