Everybody loves a deal! So, in today’s blog post we’re going to talk about the benefits of using coupons and why customers react so positively to them.
Coupons draw attention to what you sell
When you provide a discount through a coupon for your goods or services, you are implicitly telling a customer that they are going to be saving some money. In today’s tough economic times, that’s very attractive to customers. A coupon is a time tested way of increasing revenue, and increasing attention to what your business has to offer. Coupons may convince a customer that they are getting a good “deal” and helps create that sense of urgency that they should buy now. A coupon becomes a new way to advertise a product, or perhaps even more importantly, a new way to advertise an old product. If you have too much inventory of something, a coupon becomes a great way to whittle down what you have and make money doing so. Coupons can also have the additional benefit of reaching a customer base that only shops through coupons. There are plenty of customers who will only buy when they have a coupon in hand.
Coupons award loyalty
A coupon doesn’t have to be for everyone. It can be for certain segments of your customer base, particularly for your most loyal customers. If you’re worried that a general coupon will negatively impact your bottom line too much, think about offering a coupon only to a select group of customers. By explaining on the coupon that customers who purchase a certain amount from you are eligible for a discount, you reward loyalty, and maintain your business’s brand power.
Coupons can drive revenue during slow times
Many businesses are seasonal in nature, with periods of high sales and low sales. Coupons can have the beneficial effect of increasing revenue during slow times, or making products more competitive during high periods. You’ll have to determine how coupons will affect your business. Test your way into the best solution for you–test what time of year, what percentage off, and which customers use them. Another way to gauge coupon effectiveness is to look at what your competitors are doing to see whether a coupon will make your products more competitively priced or not. Remember, the coupon tab is not necessarily enough to bring customers in by itself. You may have to talk about the coupon in other areas. Tweet about the coupon on your twitter feed, blog about it on your blog, and link to it on your company’s website. Regardless of what you do, remember that a coupon is another potential tool to help your business grow. Easily advertise your discount by building a coupon tab with Pagemodo, and watch the your business grow!