Coupons have been a marketing tool for businesses for many years.
The only reason why they still exist is that they work, and can offer a wonderful boost to your profits.
If utilized correctly, they can be the perfect tool to help you take your business to the next level.
The sad truth is that today, some businesses lose money by using coupons.
They do not incorporate coupons effectively into their business strategy, and this leads to the loss of revenue.
Plus, with the state of the economy being what it is, these tough times have made more people spend less on shopping.
Most business owners cannot see how selling items at reduced prices when business is already low can be an effective business strategy.
Human beings are always on the hunt for good deals.
A child will choose a piece of cake today over the promise of a bigger piece tomorrow.
This just shows that we are constantly thinking of how situations can work best for our personal advantages.
Coupons prey on this human trait.
We want good deals and discounts, and they offer just that.
Furthermore, statistically, economic declines bring with them an even greater urge to save.
This is why the use of coupons skyrockets in times of economic hardships.
Discounts become even more attractive.
Therefore, giving out coupons during tough times will make your business active even in the toughest of financial times.
Additionally, coupons advertise your business and your brand.
Businesses of different industries, especially those of homegoods such as Wayfair, have oriented their sales strategies towards coupons and promotions.
They incentivize people to go into a business premise.
Once inside, it is your job to convince them to do more than what the coupon brought them in for.
Plus, it is your job to serve them so well that they become loyal customers, and generate you far more revenue in the long run.
Why use Coupons
1. Build traffic on your business' slow days
2. New customers, keep current customers, and reactivate former customers.
This means you gain more business on all fronts.
3. Coupons have trackable codes that can give valuable insight into your business performance and health.
Data can be measured, and the effectiveness of every campaign can be shown.
How To Use Coupons Effectively
When you choose to employ the use of coupons for your business, there are several things that you need to keep in mind.
Here are a few tips:
1. The coupon needs to be well designed.
This means it should be attention-grabbing, appealing and in line with your brand. More than that, it should communicate its purpose clearly.
What does this mean?
An effective coupon can be a deal, a discount, a bonus, a premium or a freebie.
You need to clearly communicate what you are offering, when, where, and how it can be redeemed.
2. You need to figure out your goals and why the coupons are necessary.
Do you need to improve loyalty, to launch a new product, or to celebrate a business milestone?
Whatever your reasons may be, tailor your coupons to them.
This is important because if you have coupons out often and for no reasons at all, customers start to feel entitled.
You need to justify why the prices go back up after a month, and a December sale would provide a pretty good excuse.
3. The coupon should be very specific and apply to as few products as possible.
One product per coupon is ideal.
A blanket coupon covering everything in the store is rather dumb. Be wise about what you offer coupons for.
For instance, if you have a product that sales slowly offer a coupon tailored to that product to boost its sales.
4. Your coupons should have expiry dates.
A limit on the time a customer has to redeem the coupon will keep your business on their minds.
The time limit should neither be too short nor too long.
Think about how often your regular customers come in and use that as a basis to determine the lifespan of your coupons.
In the end, using coupons the right way in your business can have several benefits.
You just need to be sure that your business can survive the discounted prices and act with a little wisdom when launching a coupon campaign.
Test out what works for you, be it discount percentages, delivery methods (print, web, social media?), or coupon redemption times (business 'dead hours' are best).
You could, for instance, reward customers with coupons after they buy something for the first time, which makes them more likely to be loyal clients.
Coupons have become so common today that customers almost expect them when they use your business.
You run a risk of losing potential sales by not giving coupons, so why not take advantage of coupons, and do it the right way?
It could be the perfect way to boost your business and the overall standing of your brand and increase sales in the process.