Some small businesses are still afraid of using coupons because they fear a coupon campaign will cost too much. The truth is that coupons are an easy way to boost sales if used correctly.
- To attract new customers
- To increase sales of a specific product
- Brand awareness
- To retain your current and faithful customers
- To up-sell a specific product
- Coupons bring customers to your business, where they will probably buy additional products
Another main reason to include coupons in your marketing campaign is that your competitors are already using them. Many coupon users do not have brand loyalty. If another brand of the same product is offering a better coupon, they will buy that brand and you have just lost that sale.
Pay attention to what your competitors are offering. You never want to offer a coupon that does not make financial sense for your business. If you cannot offer the same or more as your competitors, then you may to want to scratch that coupon altogether and offer a coupon on a different product or service.
In order for your coupons to boost sales, you want a well-thought out and financially sensible coupon. To create such a coupon, keep these things in mind:
Make sure it really is a good offer.
Ten cents off an item that costs fifty dollars is not going to impress anyone. For bigger ticket items, consider using a percentage off. Many customers will not figure out how much the item will cost them. They will simply boast to their friends that they purchased the item for “xx% percent off”.
Don’t break the bank.
Don’t offer anything that costs you. Figure in how much it costs you to purchase and sell the product/service, and adjust your coupons accordingly. If the product costs $5 and you sell it for $8, offer a $1 off coupon. You will still make a profit of $2 per item, but your customers will feel like they are getting a great deal.
Remember that brand awareness is key.
Create a visually appealing coupon that encourages brand awareness. That way, even if the recipient does not use the coupon, they may still remember your brand name later on. Brand awareness is one of the biggest aspects of a coupon campaign, so make sure you are aware of this when setting up and running your campaign. Printed coupons have long been the norm, but with new technology, it’s best to incorporate coupons on your website as well as accepting coupons shown on mobile phones. If you do not already have a website, please visit PowerSites to get your website started.
Offer more of a discount for a bigger purchase.
Consumers love feeling like they are getting a great deal. So consider coupons that offer $10 off a $50 purchase or $25 off a purchase of $75. It may be just the push they need to add those extra products they wanted anyway to their cart. Also, if they have to spend a certain amount, they may buy something they weren’t planning on. This is the first step in getting them hooked on a new product.
Follow these simple tips and tricks to boost your next coupon campaign and watch your sales increase.