In addition to the immediate money they brought in, coupons should be monitored over time too.
How did they influence the customers who used them for their first-ever purchase from your store?
Did these coupons bring in quality customers that stick with your brand?
You can find out with Metrilo's cohort analysis. (For a primer on cohorts, see here.)
Coupon cohort analysis
- Go to the Retention tab and switch to Cohort view.
- Then, choose cohorts by Coupon codes (other options are months and products).
- Now, you're looking at customer cohorts segmented by the coupon they used with their first order. The number of people included in the cohort is just below its name.
- Compare their stats over time:
- revenue (total over time)
- share of returning customers
- average order value
- average revenue per customer
5. Some things you can find with such an analysis (just a few suggestions):
- Even with a similar number of people in the beginning, one coupon can greatly outperform another if its retention rate is higher.
- Good coupons should bring high Average order value because they make people shop more, not just discount products.
- Holiday-themed coupons may no be the best way to win loyal customers.
Understanding how coupons fit in the overall shopping experience of your customers. what works and what doesn't, will save you time and money when preparing your next coupon promo.
Maybe you don't need to give out so many coupons and so much discounts. Or maybe a permanent free shipping coupon is all you need? You'll find out thanks to data.