Increase Retention and Prevent Churn with Personalized Coupons

This recipe will teach you how to create a targeted coupon campaign with Voucherify and Segment for customers who leave an unsatisfactory review on your website. Once Segment identifies your target audience, Voucherify will create an effective personalized coupon campaign to prevent customer churn and increase retention.

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What do you need?

  • Voucherify account

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Churned customers can be a major challenge for businesses, as they not only represent lost revenue and missed opportunities for repeat business or ongoing subscriptions, but they can also damage a company's reputation by sharing negative feedback or leaving poor reviews. The cost of acquiring new customers is high, as it requires significant investments in marketing and advertising. Therefore, retaining existing customers should be a top priority for businesses.

By focusing on churn prevention and increasing retention, brands can improve customer satisfaction and build long-term loyalty while taking care of upkeeping repeated business and sustaining revenue growth.

In this recipe, we will create a campaign where users who leave a one or two star review of a product will be sent coupon codes for their next purchase. The campaign will incentivize unsatisfied customers to return, try different products, and give a brand a second chance. 

To achieve this effect, Segment will track the event of a customer leaving a one or two stars review, and Voucherify will create a coupon campaign with the following validation rules: customers who are granted codes must leave a negative review first. 

Step 1: Configure Voucherify as a destination in Segment

For Segment to send information to Voucherify, we first need to connect Voucherify as Segment’s destination. 

  1. Choose Voucherify from Segment’s Catalog and choose your sources to connect the destination. For example, Marketing – Voucherify Actions. 

  2. Use Voucherify’s Application Keys to authenticate the connector. You can find them after entering the Dashboard > Project Settings. 

     

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After Voucherify and Segment are connected, events will be displayed on Voucherify’s dashboard. In this case, Segment will send information to Voucherify about an event – when a customer leaves a one- or two-star review. 

 

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See the full set-up instructions by viewing Segment’s integration documentation.  

Voucherify will then assign this customer to the relevant segment for customers who leave negative reviews. Such segments are based on custom events – similarly to Segment, Voucherify allows for controlling the data schema coming to the platform.

Step 2: Create a discount coupon campaign in Voucherify 

We will now create a discount coupon campaign with Voucherify for customers who leave negative reviews. 

  1. Choose a type of campaign: Discount coupons.

     

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2. Choose a validation rule based on customer activity: coupon codes are valid only to those customers who enter the segment of negative reviewers. 

 

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Learn more about creating a discount coupon campaign by viewing Voucherify’s support page.

When a campaign is set up, a list of promo codes eligible for publication will be generated by Voucherify.

Step 3: Assign coupon codes to eligible customers

Once the promo codes with proper redemption limits are generated, it is time to assign and send them to customers. To do that, we must create a Distribution.

Voucherify uses the Distribution functionality to assign a particular promo code to a given customer who meets validation rules, protecting the campaign from fraudulent behavior.

  1. Create new distribution: choose “Customer entered segment” as a trigger for sending discount coupon codes. 

     

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2. Choose applicable distribution conditions. We aim to send and publish discount codes to customers. 

3. Choose the name of the applicable customer segment. We want the negative reviewer segment to receive the codes in this case. 

 

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When the distribution is active, every customer who leaves a one- or two-star review, and thus is enrolled in the negative reviewers segment, gets a unique discount code from our campaign.

Step 4: Create a Voucherify source in Segment to deliver the code to the right customer

Whenever a code is assigned to a customer, Voucherify triggers a Publication event. The event stores information about the code and the customer but can also carry additional metadata. Segment’s connector detects publication events and sends them to the Segment source.

  1. Create a Voucherify source in Segment by clicking “Add source” and then choosing Voucherify from the Catalog. 

     

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2.Copy the key that you will find in the “Configuration” tab. 

 

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3. Access the Voucherify’s Integrations tab, choose Segment, and configure the plugin to enable Voucherify → Segment traffic. Open settings and paste in the key copied from the Segment’s Configuration tab.

 

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Now, Voucherify will know where to send its information – Segment will also be able to display all the events from Voucherify, including code publication. 

Consequently, you can now connect Voucherify source to a destination that delivers the promo codes via email or push notification to enable discount code redemption.

The final result: notification about code redemption 

Now that the Voucherify and Segment integration is established, with both sources and destinations connected, Voucherify will register a customer's activity (who previously left a one- or two-star review) redeeming their assigned discount code. Then, the information about successful redemption will be pushed to Segment. 

To view a complete customer profile with all events displayed, including a customer leaving a negative review, code publication, and redemption, go to Segment’s Unify tab and click Profile explorer.

 

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Remember – in order to have all your customer actions displayed, you must first connect Voucherify Source to a given space by going to Unify Settings → Profile sources and connecting a suitable source. 

 

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By integrating Voucherify and Segment, customer retention and churn prevention can become an easy task that will prove valuable for your business in terms of both finances and customer satisfaction.

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