This is the first in a series of articles taking a look at affiliate marketing in Australia. This first article takes a look at couponing and price comparison engines, and was written by Ashley Howe from the Australian site Flipit.
When you think about the best markets for coupon codes, Australia is not a country which immediately springs to mind. Countries like the US and the UK have a huge market for coupons, but Australia is lagging behind. Research conducted by DGM in 2013 has shown that comparison engines are ranked as the most popular type of affiliate marketing in Australia while couponing came in just third.
Australian retailers who are only advertising on comparison engines are missing out on a largely untapped market. Here’s the reason: on a comparison site people are only looking for the cheapest price for their chosen product. If you don’t have the best price, they are going to go elsewhere.
While a comparison site might increase your sales if you happen to have the lowest price, it is unlikely to increase brand loyalty unless pricing is consistently lower than your competitors, which is increasingly difficult in the global market.
Brand loyalty is really important, especially for Australian fashion brands. A report in 2013 by Grant Thornton has shown that Australian brands are ‘losing their way’ which is reflected by a marked decline in brand loyalty because of ever-changing technology, and tired branding strategies.
So, what is the best way to increase brand loyalty and make more sales as a result? The answer is coupons, for two reasons. The first is that a coupon can encourage users who have purchased before to return and spend. Secondly, people like to think they are getting a great deal. If you have coupon codes and your main competitors don’t, people will choose your site over theirs.
One of the best ways to do this is advertising on coupon code websites. They have a significant amount of traffic, and more and more people will associate your brand with getting a good deal, until eventually people will be seeking out coupon codes from your brand specifically.
Newsletter marketing is also an effective strategy. By offering your potential customers an incentive to sign up you can firstly sway your new customers to make a first purchase, and then encourage loyalty with birthday coupons or access to exclusive deals via your newsletter.
Finally, it is unlikely to yield good results if you try and upsell after someone has clicked through a comparison engine because they are looking for the cheapest option, but with coupons you can increase your customer’s basket value easily because there is an extra incentive to spend more than they normally would. For example, offering a coupon with $15 off a $100 spend.
Increasing loyalty should be at the forefront of your campaigns, and couponing is a great way to do it.
Ashley Howe is the Australian editor on the coupon site Flipit