Klaviyo Coupons Masterclass

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Why Coupon Codes Are Important

Are you using coupon codes but still struggling to grow and retain your customer base? Maybe you need to look into the more specialized world of coupon codes.

These powerful tools can revolutionize your email marketing by:

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Increased Spending: Online shoppers who use coupon codes tend to spend 24% more than those who don't use them. This indicates that coupons not only attract customers but also encourage them to purchase more items per transaction​​.

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Customer Acquisition and Retention: Coupons significantly influence customer behavior, with 86% of consumers stating that coupons drive them to try new products. Additionally, 67% of shoppers may decide to make a purchase solely because they found a coupon or discount​.

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Higher Conversion Rates: Brands offering coupons see a 26% higher average order value from customers who use them. Free shipping coupons, in particular, can enhance the customer experience and increase sales, with companies offering free shipping reporting a 20% higher conversion rate​​.

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Customer Loyalty and Brand Awareness: Coupons play a crucial role in customer retention and brand loyalty. About 68% of consumers believe that coupons help build brand awareness, and the same percentage says that coupons build customer loyalty​​.

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Klaviyo takes coupon codes to the next level, allowing you to craft dynamic, personalized offers that resonate with your audience. By leveraging Klaviyo's advanced features, you can:

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Enhance the shopping experience with tailored discounts. Set up personalized pop-ups based on browsing history. For example, if someone's been eyeing those fancy headphones, hit them with a "15% off audio gear" code just as they're about to bounce.

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Increase conversion rates and average order value. Create a tiered discount system. Something like "10% off $50+, 15% off $100+, 20% off $150+". Watch people add that extra item to their cart to hit the next tier!

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Strengthen customer loyalty and boost retention rates. Launch a "VIP" program with exclusive codes. Maybe "SUPEFAN25" for 25% off to customers who've bought 3+ times. They'll feel special and keep coming back for more.

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Gain valuable insights into customer behavior and preferences. Use unique codes for different marketing channels. "INSTA20" for Instagram, "EMAIL15" for email campaigns. Track which codes get used most and boom – you know where your customers are hanging out.

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In this masterclass we'll explore how to harness the full potential of coupon codes in Klaviyo for advanced users, turning casual browsers into devoted customers and elevating your e-commerce strategy to new heights.

Before diving into creating and using coupon codes, ensure your Shopify integration is correctly set up, and you can access the Coupons tab in your Klaviyo dashboard.

Integrating Klaviyo with Shopify:

Discover how to connect your Shopify store with Klaviyo through the comprehensive video guide above!

‍Step by step guide:

1. In Klaviyo, go to Integrations > Add Integration.

2. Search for Shopify and click on it.

3. Enter your Shopify store URL in the format mystore.myshopify.com.

4. Click Connect to Shopify and log in if prompted.

5. Review permissions and click Install App.

6. Confirm by clicking Integrate.

7. Enable onsite tracking if prompted.

8. Check Sync your Shopify email subscribers to Klaviyo box to add future subscribers.

   Note: Follow separate steps for historical subscribers.

9. Select a list for email subscribers.

10. Check Sync your Shopify SMS subscribers to Klaviyo box.

11. Select a list for SMS subscribers.

12. To sync profiles and data, check the Sync profiles box.

     - Choose to sync all profiles or only existing Shopify profiles.

     - Select the data to sync: Name, email, phone number, subscription statuses, events, and custom properties.

Click Complete Setup.

Ensure data sync is successful with a green success message.

You’ve now integrated Klaviyo with Shopify and set up onsite tracking.

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Introduction

In this masterclass, we will explore the different types of coupon codes you can create in Klaviyo, how to integrate them into your email campaigns, best practices for using coupon codes effectively, and how to monitor and troubleshoot coupon code performance.

Coupon codes make it easy for your customers to action promotions and feel valued

2. Types of Coupon Codes made in Klaviyo and Shopify

Dynamic Coupons - Made in Klaviyo:

Generated uniquely for each recipient, ensuring personalized offers.

These codes are always unique and can only be used once.

Example: Use dynamic codes in a welcome series to offer a personalized discount to new subscribers.

Format: {% coupon_code 'CouponName' %}

URL Format: mysite.com/discount/{% coupon_code 'CouponName' %}

<center>Dynamic codes look like this:</center>

<center>These can only be used once - like a fingerprint! </center>

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Static Coupons - Made in Shopify:

A fixed code that can be used by multiple recipients.

Used for campaigns only (Generally for static coupon headers only) which should have an expiration date.

These codes are Ideal for general promotions or site-wide sales.

Example: "WELCOME20" for 20% off any purchase.

URL Format: mysite.com/discount/CouponName

<center>Static codes look like this:</center>

<center>These stay the same for everyone!</center>

<center>For Static codes, look at using URL-Based Coupons to make it easier for your customers.</center>

URL-Based Coupons:

These are coupons embedded in URLs, leading customers directly to the discount page.

These codes can be embedded in links in your emails, making it easy for customers to apply the discount.

Example: "mysite.com/discount/NEW20" redirects users to your site with the discount applied.

These make it easier for your customers.

Redirect Format: mysite.com/discount/CouponName?redirect=/new-path

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3. Creating Coupon Codes in Klaviyo

Dynamic Coupons

1. Go to the Coupons tab in Klaviyo.

2. Select "Create Shopify Coupon" in the top right corner.

3. Define the coupon code template, such as "WELCOME15".

4. Set up the discount parameters of your choice(percentage, fixed amount, free shipping).

5. Save and integrate the dynamic coupon code into your email template: {% coupon_code 'WELCOME15' %}.

Static Coupons

1. Log into your Shopify Account.

2. Go to Discounts.

3. Click on Create Discount.

4. Choose your discount type:

- Amount off products

- Buy X, Get Y

- Amount off order

- Free Shipping

5. Enter your code in the code field and set up your discount code to behave as promoted in your email.

- Important: Be sure to set an expiration date!

- Publish the code

- Select "Get Sharable Link" - use this link in your email CTAs.

6. Include the static coupon code in your email content directly.

Be careful when using static codes as coupon sharing sites can offer them to others who are just interested in taking advantage of the discount along with spam bots who crawl over to your site and corrupt your marketing metrics.

Example of coupon based websites abusing static codes (example: Nike)

Why do your coupon codes not want to be seen on these sites - SPAM BOTS! here is why

Also, customers using these codes do not care about your brand, just the once off code to save

URL-Base Coupons:

Create a coupon in Klaviyo by following the previous steps.

Generate a URL with the coupon code embedded as seen below.

Lets use "WELCOME15" as an example: "mysite.com/discount/WELCOME15?redirect=/collections/new-arrivals".

Use these URLs in your email campaigns to simplify the redemption process for customers.

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4. Unleash the full potential of your coupons with dynamic email flows and these key formulas!

Important: Always Use Dynamic Codes for Email flows!

Welcome Series

Offer a discount for first-time subscribers to encourage their first purchase. This strategy helps convert new visitors into customers by providing an immediate incentive.

Example: "Welcome to our store! Enjoy 15% off your first purchase with code WELCOME15. We're excited to have you with us!"

Formula for Using Discount Codes in Welcome Series Flows:

https://website here/discount/{% coupon_code 'discount code here' %}

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Abandoned Checkout Emails

Encourage customers to complete their purchase by offering a discount code. This approach can help recover potentially lost sales by providing an added incentive to finalize the checkout process.

Example: "Don't miss out! Use code CART15 for 15% off your order. Complete your purchase now before your items are gone!"

Formula for Using Discounts to Encourage Cart Returns in Flows:‍

{{ event.extra.checkout_url }}&discount={% coupon_code 'Discount Code' %}

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‍Browse Abandonment

Re-engage customers who browsed but didn't buy by offering a discount code. This tactic can draw customers back to the site and encourage them to complete their purchase.

Example: "Liked what you saw? Here's 10% off with code BROWSE10. Come back and get your favorites before they're gone!"

Formula for Using Discounts to Encourage Returning to Viewed Products in Flows:‍

{{ event.URL }}&discount={% coupon_code 'Discount Code' %}

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‍Sticky Links for Flows

Use sticky links to direct customers to your website with the discount automatically applied. This simplifies the purchasing process by removing the need for customers to manually enter a discount code, increasing the likelihood of conversion.

Example: "Click here to return to your cart with your 15% discount already applied! No code needed—just shop and save."

Formula for Using Discounts with Sticky Links in Flows:‍

‍https://your shop url/discount/your discount code

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5. Best Practices for Using Coupon Codes

Segment Your Audience

Divide customers into groups based on purchase behavior, demographics, or engagement levels. Create targeted offers for each segment to improve campaign relevance and effectiveness.

Rewarding VIP customers is an example: Identify high-value customers based on purchase frequency or lifetime value. Offer them special discounts. Example: "As a VIP customer, enjoy an exclusive 25% discount on your next purchase with code VIP25. Thank you for your continued loyalty!"

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Set Expiry Dates

Use urgency to prompt action: Create time-limited offers or highlight scarcity to encourage customers to make purchases quickly.

Example: "Limited time offer! Use code SUMMER20 by July 31st."

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Monitor Performance

Track redemption rates, usage patterns, and sales impact to assess the effectiveness of your discount codes. This allows you to understand what works best and identify areas for improvement in your campaigns.

Use analytics tools: Use Klaviyo's analytics to identify which coupons drive the most usage.

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Personalize Your Offers

Personalize offers using customer data: Use purchase history, browsing behavior, and demographics to create relevant offers. This can boost engagement and conversion rates by making offers more appealing to each recipient.

Create event-based promotions: Send personalized messages for specific occasions like birthdays or anniversaries. Include the customer's name and a custom greeting. Example: "Happy Birthday, [Customer Name]! Celebrate with 20% off your next purchase using code BIRTHDAY20.

Promote Exclusivity:

Offer exclusive discounts: Create special offers for select groups like newsletter subscribers, loyalty members, or repeat buyers. This builds a sense of belonging and appreciation, encouraging loyalty and repeat purchases.

Highlight exclusivity in messaging: Craft messages that emphasize the special nature of the offer. Example: "As a valued subscriber, enjoy an exclusive 20% discount! Use code VIP20 at checkout." Personalize the communication by addressing the recipient and expressing gratitude for their loyalty.

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6. Monitoring Coupon Code Performance

Monitor key metrics such as the following:

- Redemption rates

- Customer retention

Adjust underperforming codes by (Examples include):

- Increasing discount amount

- Extending the expiry date

- Modifying the Target audience

Example: If a 10% off code underperforms, consider boosting it to 15%, extending its duration by a week, or targeting a different customer segment.

Track User Engagement:

- Evaluate discount performance: Track coupon usage over a 30-day period to determine which types of discounts resonate best with your audience.

- Compare various discount types: Analyze the effectiveness of percentage discounts, dollar-off offers, buy-one-get-one (BOGO) deals, and free shipping promotions.

- Understand customer preferences: Use this data to gain insights into which incentives your audience finds most appealing, helping to guide future promotional strategies.

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7. Troubleshooting Common Issues

Coupon Not Working:

- Verify coupon status and setup: Check if the code is active in Klaviyo/Shopify and ensure the discount parameters are correct.

- For dynamic codes: Use straight inverted commas (') instead of curved quotes ('). Test the code generation process to ensure accuracy.

Correct

{% coupon_code 'Discount Code' %}

Incorrect

{% coupon_code ’Discount Code’ %}

- Review coupon restrictions: Check for minimum purchase requirements, product exclusions, and usage limits. Ensure restrictions are clearly communicated to customers. Test the coupon under various conditions to confirm it works as intended. Copy Retry

Low Redemption Rates:

- Re-evaluate the attractiveness of the offer. Assess if the discount or promotion is compelling enough for your audience. Consider testing different offers to see what resonates best.

- Consider re-segmenting your audience or improving your email content. Identify if the current audience segment is the right target for the offer. Enhance email content by making it more engaging with clear calls to action, personalized messages, and compelling visuals. You could also run A/B tests to see which content performs better.

Technical Glitches:

- Make sure your URLs and embedded codes are formatted correctly. Verify that all links and codes are properly set up and tested before sending out emails. Use URL validation tools and test the entire flow to ensure everything works seamlessly.

- Check for any conflicts with your eCommerce platform’s coupon settings. Ensure that the coupon codes are compatible with your eCommerce system. Look for potential conflicts such as expiration dates, usage limits, or restrictions that might prevent the coupons from being applied. Test the coupon codes in various scenarios to ensure they function correctly.

High Return Rates:

If coupon use results in high returns, evaluate the products being promoted and adjust as necessary.

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8. Conclusion

Coupon codes are a powerful tool in your marketing arsenal, capable of driving sales and fostering customer loyalty. By creating personalized, timely, and relevant offers, you can enhance the shopping experience and achieve your business goals.

Monitor your performance, adjust strategies based on data, and keep your audience engaged with well-timed and attractive discounts.

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Make the Most Out of Your Coupon Codes!

Ensure your customers never miss a deal. Consult with our experts to optimize your coupon strategy and see a significant boost in your sales. Book a call now!

We guarantee to increase your revenue by $50k-100k in just 60 days, or you don't pay.

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