Creating Coupons That Don’t Lose Money
Using coupons for your business can seem counter-intuitive. How can giving customers a way to save money bring in more business for you? Dollars & Sense wants to show you how.
The simple philosophy behind a coupon is that customers will visit your business to obtain the deal, then be so impressed with your product that they’ll become loyal customers. This, though, is often not the case. In a research study conducted by Rice University, nearly 87% of consumers note that once they’ve cashed in on a great coupon, they have no urge to frequent a business anymore than they had before.
The key to making your coupon as successful as it could is to give customers a reason to come back for more. When creating a coupon, make its terms contingent on getting a little something back from the customer. Here’s two situations to illustrate that point:
Scenario 1: Makeup Madness
Wrong: Let’s say that you own a small makeup business that recently opened its first brick and mortar. As part of your opening day celebrations, you send out coupons that allow customers to choose a free lipstick with the purchase of $30 or more. Those customers like your product, but they’re used to their drugstore brands and prices. They don’t come back to your store.
Right: Same makeup counter, same opening day celebration. Instead of creating a coupon that gives them their prize right then, drum up a little delayed gratification. With each purchase, they are allowed to draw a coupon from a box. The coupon is only applicable on their next visit. Now, you’ve made a sale today and you’ll most likely be making a sale in the future.
Scenario 2: Restaurant Rush
Wrong: You are the proprietor of a cozy gastropub in the heart of the city. As much as you appreciate all of the regulars, you’re eager to get some new business in the door. You stand outside and hand out coupons that invite customers to get a free appetizer with each entree purchase. Over the next couple of weeks, you notice a small peak in customers, but only a few return after the coupon expires.
Right: Instead of handing out coupons, you set up a small booth during the busiest time of day. The booth contains an iPad, small samples of your most popular ware, and bottles of water. Any passerby that wishes may get a sample, but those who sign up for online coupons get an instantly redeemable coupon and a bottle of water. Now, you’ve got the same amount of customers as before coming in to redeem the coupon, and you’re also encouraging future business by getting them on your mailing lists.
While these scenarios look a lot different for each, individual business owner, the benefits of advertising with Dollars & Sense does not. If you’re ready to reach 1 million families in the Twin Cities area, contact us today to find out how.