Marketing to Price Sensitive Customers And How To Get Them

Sunday, November 15, 2009@ 12:20 PM
Author: Nigel Burke

ecommerceThere are many types of customers that are shopping online today but today, we are going to discuss the price sensitive customer type. These customers use two tools to do their online shopping – online comparison websites and coupon codes.

Coupon & promotional codes
Traditionally and still used today, you would get flyers in the mail box with cut out coupons. These were targeted to customers who would go to the effort of cutting out these coupons and taking them to the shops to get their discount.

Do you remember the times that you were waiting in line at the store and you see someone with a coupon in the line and then you realize you have forgotten your coupon to get your discount? The person with the coupon code is a price sensitive customer who goes to the extra effort of getting that discount.

These same customers are shopping online everyday and still looking for those discount codes. Many of the pizza chains in my area use online coupon codes for online ordering.

How to get your coupons codes out there
Many of the shopping cart software packages that are offered today often include coupon code functionality. You simply create a code by entering a keyword, the discount given – fixed or percentage, expiry date and number of uses allowed.

Promoting your coupon codes
Once you have your coupon code ready to promote, where do you promote it? There are many different places that you can promote your coupon code but the essential thing is to get it to the right customers at the right time.

  • On your home page – You can tell visitors when they load up your front page that a discount is given for a certain range for a limited time.
  • Special landing page - You can create a special landing page for your Adwords or Yahoo campaigns and include your coupon code on the landing page.
  • Social media site – You can have a link from your Facebook page, do a tweet using Twitter or offer the discount code on your blog for your blog readers.
  • Mail out – You can include the discount code when you do a direct marketing campaign or sending out flyers.
  • Coupon code websites – This is a powerful tool and used in the right way, can get great results. These websites list all the coupons submitted by users to share with other users.

Depending on what your goals are and the type of offer will depend on what method you use to get your coupon code out there. You don’t want to be offering coupon codes if the customer is already going to be buying the product at the listed price.

Google recently published the following data which shows how popular it now is for customers to search for coupon codes online -

Coupon codes search history from Google

Promotional search history from Google*Graphs provide by Google

These graphs demonstrate the popularity of people searching for coupon codes and promotions codes. You can see the holiday period spike in searches will be coming soon so now is the time to start promoting your codes.

Work better than other products
Some products work more effectively with coupon codes. They include popular products and commodity items. It’s up to you to do your market research to see if your competitors are offering coupon codes and if the market would respond well if you started offering coupon codes.

Conclusion
Using coupons effectively can mean more business. Make sure your website uses coupon codes effectively to take full advantage of the price sensitive customer.

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