Top Coupon Marketing Tactics for Small Businesses

Last Updated: 

July 25, 2025

Coupons and discounts are a fundamental aspect of today’s shopping experience. In these strange and turbulent times, consumers are looking for more ways to save money, and coupon marketing may not only be a helpful solution for them, but can also significantly benefit a small business and actually increase sales even in these hard times.

According to Statista, 40% of online buyers look for digital coupons and promo codes before shopping. They trust third-party websites that share up-to-date deals and promotions, such as Groupon, PennyCanny, and Savings. About 73% of buyers are willing to trade their email addresses to receive a 20% coupon, which small businesses can use for marketing and retargeting.

Coupon marketing from a company such as Hownd coupon marketing involves using coupons, discounts, and promotions to increase sales. Since consumers are interested in saving money, businesses can offer their customers what they want at lower prices and thus entice them to buy from their company.

Although not every business has caught on to this valuable approach, coupon marketing has been proven to be an effective approach and to benefit everyone involved. For example, 84% of consumers say they’re more likely to be loyal to a brand that offers a reward program, one of the main facets of coupon marketing.

Coupon marketing creates an equation where everyone wins, and as a small business owner, you could probably use a win right now. Here are the best coupon marketing tactics to benefit your small business and your customers.

Key Takeaways on Coupon Marketing Tactics

  1. Create a Rewards Programme: Building a loyalty or VIP programme is a brilliant method for encouraging repeat business. By offering exclusive discounts to loyal customers, you incentivise them to keep coming back, which directly boosts your sales and strengthens their connection to your brand.
  2. Encourage Data Sharing: Offer a valuable coupon in exchange for a customer's email address or phone number. This simple trade provides immediate value to the customer while giving you a powerful asset for future marketing campaigns and building a direct line of communication.
  3. Experiment with Distribution Channels: Don't just stick to one method for sending out coupons. Test different approaches like email, text messages, and in-store promotions to discover what truly connects with your audience and results in the highest number of sales.
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Create a Rewards Program

Reward programs are one of the best coupon marketing tactics that significantly increases loyalty and sales. Offering loyal customers discounts or coupon codes only increases their allegiance and love for your brand, and makes them want to shop there more. They’re incentivised to continue spending because the more they spend, the more they receive.

As mentioned above, a large majority of consumers will stay loyal to brands that provide discount codes and rewards programs, showing how seriously customers take these. Instituting a VIP program or a customer club is one of the most surefire ways to increase business. It’s also another way to get more customer information such as emails and phone numbers.

Encourage Data Sharing

Having more customer information can never hurt; you need to know who your customers are, what their interests are, and how they shop to have a successful business and marketing program. Their emails and phone numbers are valuable information since you can use these assets for further marketing and encouragement to buy your products.

To obtain this information you can create incentivised lead magnets using QR codes where you offer a discount or coupon in exchange for sharing information such as an email address or phone number. This situation becomes an equal sharing of something that both parties value: the customer gets to save money on a purchase, and the business owner can use the customer’s data for future coupons and other marketing purposes.

Experiment with Distribution Channels

Another great way to increase your sales through coupon marketing is testing different distribution strategies to find the most effective one. This way, you can hone in on something that truly works, rather than blindly attempting to market wherever you can.

While no consumer base is going to be exactly uniform in the way they like to receive information from a business, most prefer text messages, email, paper, in-store coupons, or a combination of multiple methods. Since your industry and type of business may significantly influence your target market and the coupon preferences of your customer base, it may be worthwhile to experiment with different channels to find which is the most effective in driving conversions.

Coupon marketing can be a significant asset to your business if done right and with your customer’s best interests in mind. Consider this new marketing strategy and learn more about it with this infographic from CouponChief.

Image by Photo Mix from Pixabay

FAQs for Top Coupon Marketing Tactics for Small Businesses

Why is coupon marketing a good strategy for my small business?

Coupon marketing is a fantastic way to attract new customers and retain existing ones. In an economy where everyone is looking to save, offering a discount can be the very thing that encourages a customer to choose your business. It can lead to increased sales, better brand loyalty, and helps you build a valuable customer database.

How do I create a rewards programme that works?

A successful rewards programme makes your loyal customers feel special. You could start a simple points system where spending earns discounts, or create a VIP club with exclusive offers. The key is to reward repeat business, which not only boosts sales but also strengthens the customer's connection to your brand.

Is it a good idea to ask for customer data in exchange for a coupon?

Absolutely. Offering a discount in return for an email address or phone number is a classic win-win. The customer gets an immediate saving, and you gain a direct way to communicate with them for future marketing. This helps you build a list of engaged customers who are already interested in what you offer.

What are the most effective ways to send out coupons?

The best method really depends on your customers. Popular channels include email newsletters, text messages, physical mailers, or even QR codes in your store. It's wise to experiment with a few different options to see which one gets the best response and redemption rate from your specific audience.

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