Use single time use coupon codes to prevent coupon code fraud
Companies in the United States lose hundreds of millions of dollars because of coupon code fraud every year. There are fraudsters out there who make big bucks by creating fraudulent coupons to use or sell, but coupon code fraud happens more often on a much smaller scale. Coupon codes intended for targeted audiences have a tendency to go viral, and consumers who don’t actually qualify for the special offer won’t hesitate to use the coupon code to save a buck or two.
Coupon code fraud puts retailers in a tight spot. Coupon codes work, especially when marketers are trying to re-engage current customers who haven’t placed orders recently. It’s an accepted fact, repeat customers are more valuable to your bottom line than new customers.
- Repeat customers spend 67% more than new customers
- Their average order size is larger than new customers’
- Referrals among existing customers are 107% greater than non-customers
- It is 6-12x more expensive to acquire a new customer than engage with an existing one
Making them feel special by sending them special offers or discounts is one sure-fire way to spark their attention. Even 52% of customers who have had a negative experience with company say they’d give them another chance if they were offered a discount and an apology. An added bonus? 82% of online shoppers say they’re more loyal to companies that offer coupon codes regularly.
Now we know that the problem with blasting out a coupon code to your existing customers is that it’s likely to go viral, resulting in discount fraud. Single use coupon codes are a good solution, but you need valuable IT time to create coupon codes and manage and track their redemption. SheerID’s coupon management technology allows you to give your existing customers one-time-use coupon codes to prevent coupon fraud. And SheerID’s validation technology ensures that each coupon code can only be redeemed once. What are you waiting for? Give us a call!