Did you know that more than 80% of millennials use couponse while shopping online?.
Coupons are an incredibly powerful digital marketing strategy, but are you doing it right? Coupons can easily fall victim to fraud, insecure validation or lead to major revenue loss if implemented incorrectly.
Here are four tactics to guarantee coupon code security:
Coupon campaigns will be a great addition to your digital marketing strategy this year, but be sure to keep these security measures in mind if you want to save your promotion costs.
With a powerful coupon engine in place, you can avoid abuse before it negatively impacts your business.
"More than 70% of US internet users said their purchases were influenced by coupons and discounts (eMarketer, 2016)."
1. Secure coupon validation
The example: Give a 5€ coupon to customers who clicked a Facebook link (including UTM parameters), valid when they have a total cart value of 50€
- The coupon rules in place here include user
- The coupon is only valid for customers who fulfill all of these conditions
- If your promotion solution does not validate rules correctly, you could lose a lot of money
- Ensure your promotion solution can create a secure coupon code and deliver the right reward to the right person.
2. Implement redemption limits
The example: You want to to give new customers who sign up for your newsletter a special coupon code valid for free shipping on the next order.
- Limits to consider:
- Limit the number of redemptions possible for individual coupon code (so customers don't send to all their friends)
- Define how many times a customer can redeem a code based on something unique like a customer
- Set a total cap for the campaign to control how many codes are distributed (can be unlimited)
3. Secure code structure
The example: You want to reward customers for their 10th purchase on your website with a 20€ code to use for their next purchase over 100€.
- A secure code length is between 4 and 20 characters long to prohibit someone guessing the code.
- Sadly there are some people (or maybe bots?) who try to guess codes.
- Customize your code using a set of numbers, letters, or a mix of both. Either way, have the right code validation in place for optimal security.
If you are using Talon.One, our coupon settings calculate the chances of someone guessing your code to maximize code security.
4. Timeframe and expiration
The example: You run a promotion giving customers 50% off their next purchase if they use the code SUMMER-2017 within the next 72hours
- Always set the exact
expiration timeof your coupon code.
- Don't let customers redeem the code over and over for the entire summer (that would be embarrassing and a huge loss of revenue).
- If you issue
expiredcodes, this will lead to major customer dissatisfaction and problems for your customer support.
No matter your industry, there is no doubt that coupons are an effective promotion marketing tactic.
"In 2014, it was estimated that 16 billion eCoupons were used and projections show that an estimated 31 billion eCoupons will be used in 2019 (Invesp, 2016)."
When you were a kid, did you ever make special coupons for a "One Free Breakfast" and give them to your parents? But you aren't five anymore and your business has thousands of customers waiting for coupons and discounts.
But that shouldn't stop you! With a proper solution for creating, managing and tracking your coupons, you can avoid issues with code validation, fraud, wasted revenue and wasted resources.
Ensure your solution has logical checks in place to ensure all rewards are carried out effectively and you avoid wasting your promotional budget.
What is your experience with coupons? Questions about coupon code security? Have you been a victim of code abuse or fraud? Get in touch or let us know your experience in the comments below.
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