Budgeting For Your Coupon

There are a few components that need to be figured into the cost of your coupon campaign.

• Coupon Face Value
• Clearing or Redemption Costs
• Coupon Provider Costs
• Coupon Distribution Costs
• 
  

Sample equation:
(Coupon Face value x Estimated redemption rate) + Clearing administration costs + Coupon provider costs + Coupon distribution costs = TOTAL COST

One of the foundational components of your coupon budget is an expected redemption rate. Of 100 coupons distributed, only a fraction will be redeemed, thus making your face value and redemption costs variable. The industry average Print-at-home coupon redemption rate is 8% but ranges widely between 1.74% - 29.35% depending on where the coupon is distributed. Coupons living in the brand’s social channels or website will have a higher redemption rate than those distributed through paid media or a network.

Once you have established your budget and estimated redemption rate, you will be prepared to build your coupon and know the print limit you need to set to obtain your goal and stay in budget.

*Source: 2016 Inmar Coupon Trends