We all love a good deal, and sometimes we buy things only because of the enticing offers. Offering coupons for customers is an effective marketing strategy that has been used for a long time. Ranging from newspapers to digital coupons found on websites, this strategy is flexible and has evolved with technology. Small and big businesses alike use coupons to attract customers and increase the sales of their products. Many business owners are wary of coupons as they don’t understand how they work and they feel like they are just losing profit. However, when you understand the benefits of coupon marketing, you will find out why it is effective.
Brand Awareness Increase
Coupon marketing can be extremely beneficial for small businesses as they increase their brand awareness. Customers will be more open to trying a new product if it has a discount. Whether it is a new business, launching a new product, or you can’t reach customers physically through your store, offering digital coupons will attract them to your products.
Attracting New Customers and Retaining Old Ones
Everyone wants to save money while shopping or buying necessities. Customers will always go for the store or business that will offer them discounts on their products. To stand out from the fierce competition in today’s market, you must offer good quality at affordable prices. Coupons are excellent when you want to retain regular customers and at the same time attract new customers that want to make the most out of your coupons. Coupons also encourage word-of-mouth as regular customers will inform their network of the deal you are offering.
Advertising Expenses Reduction
Coupons are an effective way to advertise your business. As discussed before, coupons attract new customers and increase brand awareness, which various businesses try to achieve through several advertising methods. You can use some of your advertising budgets to create coupons that will contain your business name, address, social media links, and other vital information for the customer. Think of coupons as advertising costs that you don’t have to pay until customers purchase your products or services, and at the same time, you ensure that you will increase your sales.
Identifying Potential Customers
Back in the day, customers used physical coupons at the register without providing any information about themselves. However, digital coupons offer a precious feature of data collection. Customers now will write down their name, address, contact numbers, and relevant information to use the coupon. Using this information, you can identify potential customers. As the coupon professionals at DealDrop.com say, you can identify what type of customers buy your products, age range, location, and other useful information. Aside from expanding your customer database, you will analyze the information and use this analysis to reach more customers that fit into the criteria you have created from the analysis. This information is useful to identify potential customers for your business and for each different product you offer.
Selling Older Products Easier
Selling those last pieces can be challenging, especially if their expiry date is in a few months. If you are selling clothes, you might need to get rid of this season’s collection to showcase your next season’s one. Coupons can help you in selling the products you want before you have to destroy them and save you from future losses. Without compromising the customer’s safety, you can sell those products whether at discounted prices or freebies. The coupon has two functions this way, to advertise your products and to dispose of expiring products.
With conventional advertising methods, you need extensive research and surveys to measure the effectiveness of your marketing campaign. Coupons offer measurable results easily without dedicating tasks to get such information. Counting people who used the coupons will give you an insight into how many people purchased a particular product or visited your business through coupons. You can expand your customer database, analyze which products were sold with the discounted ones, and many other measurable analyses.
Offering coupons doesn’t necessarily mean that your business will lose money. Depending on the type of products or services you offer, you can still make some profit when customers redeem coupons. You may not gain much profit from one single sale, but you will gain a huge amount of money if your customer numbers increase.
Coupons are a win-win condition for businesses and customers, as businesses grow their customer’s database and the consumer buys what they need at a discounted price. Make sure not to lose much profit by offering unreasonable coupons, or drive people away from your business by offering a discount that is not worth it. When customers use coupons, they might end up buying more than they planned for as they save money which can be spent to get more items from your store. You will get attention from new customers which will boost your brand name through word-of-mouth from regular and new customers while identifying potential ones.