In the competitive landscape of digital marketing, enterprises need robust tools to manage their promotional strategies effectively. Coupon management software has emerged as a vital asset for businesses aiming to attract and retain customers through enticing offers. However, with numerous options available, selecting the right coupon management software, as opposed to more basic coupon generator software, can be daunting. To help you make an informed decision, this article delves further into the subject of coupon security, providing deeper insights beyond the basics of choosing the best digital coupon software and systems for your business.
How Much Coupon Security is Required
As we mentioned in our blog post on Choosing the Best Digital Coupon Software and Systems for Your Business, we often suggest that our customers consider whether what they are delivering is closer to “offers” or “coupons.” An “offer” is something that the business would be willing to do for any customer at any time, such as buy 10 sandwiches and get 1 free. A coupon is something that has high value whose usage needs to be controlled. An example of a coupon might be “come into our restaurant from 6 AM to 9 AM and get a free breakfast”.
In the case of the “coupon,” it is critical that a) the number of offers distributed is very limited and b) each offer can only be redeemed one time. Otherwise, the offer could go viral and be VERY expensive for the store owner. Where your offer/coupon is on this spectrum will help to determine how much coupon security is required, whether or not the coupons need to be single-use, and what the options are for customer redemption.
Coupon Security – Questions to Ask
The first questions to ask yourself include:
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- “Do you need to ensure that your digital coupons can only be used once?” and
- “Do you need to prevent your digital coupons from going viral?”
The next questions you might consider are:
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- “What would the cost be to my business if I have people redeem their coupons more than once?” and
- “How trustworthy are the people who will be accepting the coupons?”
Let’s review these questions one at a time.
Do You Need to Ensure That Your Digital Coupons Can Only Be Used Once?
Typically, this will depend on the value of the coupon and how the customer obtained the coupon. For example, the higher the cost to the business of the digital coupon, the more likely it should be a single-use coupon. If the coupon is of low cost to the business, then it may not make sense to make it single-use. Another reason to make it single-use would be if you want to track the results of your marketing efforts. Single-use coupons allow you to track individual customer behavior, so you can see the specific results of your marketing efforts (you will know which individuals redeemed their coupons).
Do You Need to Prevent Your Digital Coupons from Going Viral?
For low-cost coupons, it might not be a significant concern if they are widely shared. However, for high-cost coupons, it is crucial to ensure that each consumer can only obtain one coupon and that only the intended recipients receive them. This necessity directly influences the choice of coupon tracking software, as different solutions offer various methods of coupon distribution. For example, some coupon systems deliver coupons upon customer request and use cookies to track whether a customer has already received a coupon. This method can be problematic because if consumers clear their cookies or disable them, they can potentially access multiple single-use coupon codes, leading to misuse.
A more secure approach is to assign coupons based on email addresses, as most individuals have only a few email accounts. An even more secure method is to assign coupons using mobile phone numbers and deliver them via SMS. Since most people have a single mobile number, this reduces the risk of multiple redemptions. Additionally, for enhanced security, SMS providers can restrict delivery to exclude VOIP numbers, such as those from Google Voice, ensuring coupons are not sent to easily accessible mobile numbers.
What Would the Cost Be to My Business if I Have People Redeem Their Coupons More Than Once?
The value of your coupon will significantly influence your approach to these considerations. Understanding this value helps determine the necessity of single-use coupons and the most appropriate redemption models. Here are various coupon redemption models to consider:
Customer Redeemed Coupons
There are two primary types of customer redeemed coupons: timer-based and tap-to-redeem.
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- Timer-Based Coupons: In this model, the customer taps a button on their mobile device to display the coupon, which simultaneously starts a visible countdown timer (e.g., a 2-minute timer). The barcode is only displayed while the timer is counting down. Once the timer reaches zero, the coupon is considered redeemed, regardless of whether it was actually used.
- Tap-to-Redeem Coupons: Similar to timer-based coupons, the customer presses a button to view the digital coupon. To indicate that the coupon has been used, the customer (or the merchant) taps a button on the coupon. Once this button is pressed, the coupon is marked as redeemed and cannot be reused.
Merchant Redeemed Coupons
Merchant redeemed coupons can be validated using either a merchant device or direct POS integration.
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- Merchant Device: In this scenario, the merchant uses their mobile device to scan a coupon barcode on the customer’s mobile phone (or a printed version). Upon scanning, the merchant’s device checks the coupon’s validity. If valid, the merchant can apply the discount and press another button to mark the coupon as redeemed. This process is quick and suitable when the merchant trusts the individuals redeeming the coupons or when there is a limited number of trusted individuals involved.
- POS Integration: This method offers the highest level of security and involves the greatest cost. When integrated with the POS system, the system automatically verifies the digital coupon’s validity, applies the discount, and marks the coupon as redeemed without human intervention. This solution is ideal for businesses with multiple locations and numerous employees, as it minimizes the risk of misuse. POS integration typically involves application programming interface (API) calls between the POS and the coupon tracking software. Although this solution is usually more suitable for medium to large businesses due to its cost, technically, it can be implemented in any business size.
By understanding the value of your coupons and carefully selecting the appropriate redemption model, you can ensure that your coupon management software effectively meets your business needs and protects against potential misuse. Integrating a reliable coupon tracking system further enhances the security and efficiency of your promotional strategies.
Conclusion
Choosing the right coupon management software is crucial for effectively managing your promotional strategies. By considering the necessary coupon security, understanding the costs of potential multiple redemptions, and evaluating the trustworthiness of those accepting the coupons, you can select the most suitable coupon tracking software for your business. Whether you need a robust coupon generator software or a comprehensive coupon tracking system, ensuring the right features and security levels will help you maximize the benefits of your promotional campaigns.