Analysis On Coupon Marketing.

Coupon Marketing is about the use of coupon codes, vouchers to attract and retain customers, taking advantage of customers interest in saving money on purchases.

Benefits of Coupon Marketing.

1. Accomplish your sales goals faster

2. Grow your customer base

3. Get improved feedback

4. New Customers

In this article, I will brief about how to segment the customers, analyze and know the Impact of the redeemed vouchers.

1. Customer Segmentation.

Identify a set of regular purchasing customers and their AOV.

Interpretation

Step 1 : We have queried and extracted the last 6 months of regular purchasing customer ID's along with their AOV's (Average order value).

Step 2 : Segment the customers based on the AOV's. I.E "Targeted Customers",

Current AOV : Customer current purchasing AOV.

Step 3 : Targeted AOV : To which we have targeted to increase the customers AOV, this depends on the business needs.

Step 4 : Campaign runned: Executed 3 weeks of campaign and sent 1 voucher code every week for 1 customer.

2. Voucher Overview.

* Target Achieved Customers : Number of customers who received and redeemed the vouchers at least once.

* off % : Discount provide for each AOV bucket.

* Sum Voucher redeemed : off. multiply with number of vouchers redeemed for each AOV bucket. This is exactly the cost incurred by the company.

3. Impact of the campaign

The above cross tab provides the results of the campaign with different segmentations.

1. Increased AOV + SOW : The numbers falling under this field indicates those customers, Who have increased the targeted AOV along with their share of wallet money from the previous period.

2. Increase AOV Only : Indicates those customer who have increased only AOV.

3. Used Vouchers back to original habit : Tells us that the customers who have redeemed the vouchers and went back to the previous AOV.

4. Cost Incurred per customers : Sum Voucher Redeemed/Unique Customers from the segmentation bucket

The above (assumed) numbers will tell you if your marketing campaign is succeeding. If not, metrics will allow you to assess whether continuing with the campaign is worth the cost.