I love coupons…both as a consumer and a marketer. Chances are your customers love them too. My family turns to me to find the best deal online because I can always hunt down an online coupon. I never pay full price because there is no reason to. If your company is not offering coupons or discounts you may be losing out to your competitors. If you do a Google search you will see how many of your competitors are using them.
Coupons have always been popular but now during an economic turndown they are even more popular. Besides the money saving aspect of coupons, customers really like to feel like they are getting a bargain and are being treated special. It’s part of the thrill of online shopping.
Here are some reasons why coupons can be a great marketing tool!
A. Consumers will travel far to redeem a valuable coupon.
B. Coupons will entice customers away from your competitor and will have them purchasing from you.
C. Coupons attract new residents when they are actively in the market for products and services.
D. Coupons will bring back old customers who have been lost to your competitors.
E. Coupon advertising gets customers into your store or onto your website where they are likely to buy additional items at full price.
F. Coupons can measure your customer response and interest. All you have to do is count how many coupons come back to see how successful the offer was. This will provide you with feedback and information for future offers and marketing plans.
Understand that the media delivering the coupon has very little to do with the response. Publications simply deliver your offer to a specific audience. It’s up to you to determine what offer produces the best response from that audience. You do this through methodically testing various offers. Savvy use of this “coupon testing” technique will give you the specific knowledge you require to greatly improve all of your advertising response, your sales, and your profits.
How do you develop a coupon program that will work for you? Consider these tips:
1. The most common question marketers ask about coupons is…How much to offer? The answer actually depends on the average order on your website. If the transactions are less than $100, merchants tend to offer a flat rate discount in dollars, for example $10 off a purchase of $50 or more. If your average order is more than $100, it makes sense to offer a percentage discount, for example 10% off a purchase of $100 or more.
2. It costs more to attract a new customer than to keep an existing one. And new customers usually buy more than repeat customers. So offering them a greater discount is a good idea.
3. Set a minimum spending requirement that is a bit higher than your average transaction size. It will help you encourage the customers to add a couple of extra items to their shopping cart. For example, if you average order is about $50, you can offer a 10% off coupon for purchases of $60 or more.
4. Avoid online coupons that are valid only for a specific product or product range. In this case your customers will pay less attention to other products on your website.
5. Another great way to increase sales is to offer free-shipping coupons.
6. If your margins are already tight, you may raise your prices before offering a discount. Of course you want to attract more customers, but your aim is to earn money, right?
7. Set an expiration date for your coupon. It will create a sense of urgency for some customers.
8. Submit your coupons for listing on coupon websites and directories. Google “coupon codes” to find suitable sites for submission of yours.
9. Change your discounts and offers frequently. People will come back often for a good deal and to see what the “deal of the month or week is.”
10. Ask people for their email address so that you can notify them when you update your coupons or discounts. People are more willing to give out their email address for a discount. This is a great way to build your address book and customer base.
I always use coupons online when I buy something. I will choose one competitor over another based on the fact that they offer free shipping or some other sort of coupon. I would imagine that most shoppers are like me. It is so easy to hunt down a coupon online while a coupon cut out of a newspaper or circular can be more difficult to remember to use.
Coupons are valuable marketing tools when used correctly. This is especially true in this down market where everyone is trying to save wherever they can. You can capitalize on this and draw customers to your website or store.
