Maybe you came across this article because you are a small business looking to build brand reputation, maybe you have been around for years but want to reach a new audience, or maybe you are just trying to get attention for a new product you’re rolling out? Whatever the reason, discounts can help you!
If you take a trip to the mall these days, you will find it spotted with bright yellow sale signs and clearance tags. Back to School, Labor Day, Black Friday, Christmas… businesses will take up any excuse to run a sale. You might be thinking though, what’s the point of discounting and reducing if the goal is to drive more revenue? Wouldn’t I make less money selling my products for cheaper?
Truth is, though, releasing coupons is actually one of the most surefire ways to bring in the bucks.
Here are some reasons why:
- Promotions deliver happiness to new & existing customers
- Special Offers create a Favourable Brand Image
- Coupons are the #1 reason consumers purchase products from an unfamiliar brand.
Unless you’re Walmart or American Eagle or another big name, chances are there are some people out there who haven’t heard of your brand. For most people, it can be risky or intimidating to make their first purchase at an unfamiliar place. Overcoming this objection is the key to bringing in new customers. When you offer a discount on your products, it will alleviate some of that fear and create a more positive buying experience. Discounts drive new customers to make their initial purchase, the first step to a lasting relationship.
One of my all-time favorite businesses is Hobby Lobby. This isn’t because their craft supplies are better than anyone else’s, but because they have an unlimited-use always available 40% off one item coupon. If I ever need any kind of craft supply, that’s where I go. And when I’m there, you better know I walk out with way more than I planned. Because of that rockin coupon, they get my business every single time, rather than going to Michaels or Joanns or Walmart.
Nearly half of all retailers reported offering consumers some form of bonus coupon program (The Balancesmb) This means there’s a good chance your competitors are using coupons in their marketing plan, and you sure don’t wanna be left behind.
Let me lay out some facts for you:
- 85% of Americans use coupons (Money.com)
- More than 25 million Americans use couponing apps to save money each month (Wikibuy.com)
- 48% of U.S. companies use mobile coupons for marketing (ReadyCloud)
- Emails containing coupons offer a 48% increase in revenue per email (ReadyCloud)
- 38% of consumers say they’re more likely to treat themselves to something they don’t need if they have a coupon (blog.accessdvelopment.com)
- Discounts have a bigger influence on purchasing decision then speed of delivery, ratings and reviews, the trustworthiness of retailer, and more. (Conversio)
So obviously, coupons are a must for businesses looking to boost sales and build their brand. In order to bring in the bucks though, you have to make sure that your coupons are set up for success and distributed through the right channels.
Here are some elements of effective coupons:
- Decide what discount to offer: Buy one get one free, free shipping, and 30% off coupons bring in the most business.
- Word it: Make sure the wording on the coupon is simple and easy to read. Don’t forget an expiration date (usually about a month out is good).
- Design it: Make your coupon eye-catching! Have a picture on it of the product or service the consumer will receive. Canva is a great free resource you can use to design your coupon. Be sure to add a logo!
- Train: Make sure your employees are aware of the coupon and know exactly what it offers and its limitations. This will avoid the awkward confusing stares from the employee when handed a new coupon.
- Distribute it: It is so important that you’re coupon is available in every format, everywhere you can think of. Send it to your email list, post it on your website, blast it on social media, hand them out with a purchase, and whatever else you can think of!
- Track it: Make sure you analyze the results of your coupon, to know its effectiveness for your audience.
So whatever the reason you landed on this page, coupons can help. They can help bring in new customers, reward current customers, reactivate former customers, increase sales for a specific product, upsell a product, and raise overall brand image and awareness.