Coupons have proven themselves to be a highly effective sales tool for businesses.
Coupons have become a popular component of marketing among local businesses wanting to promote themselves successfully. A simple explanation is they are used by the consumer.
- Advertising Age (the Bible of the advertising industry) reports that 87% of all shoppers use coupons.
- Another independent marketing research firm, the A.C. Nielson Co., reveals that 95% of all shoppers like coupons. And 60% actively look for coupons.
- A recent article in the Wall Street Journal entitled, "In a Pinch, Snip.Ē states that coupon use rises, as the economy in any given area slides. 54% of shoppers surveyed said they had already stepped up use of coupons, and even more are expected to do so.
It's very easy to see why coupon advertising is popular. Regular use of a good coupon strategy will provide a steady flow of new customers and referrals.
Business experts cite these reasons for heavy reliance on coupons:
- They have the effect of increasing your market area. Consumers will travel farther with a valuable coupon.
- They will gain the attention of new customers. Statistics prove consumers will break routine shopping patterns to benefit from a good coupon offer.
- They attract new customers when they actively seeking products and services.
- They will gain notice from old customers. Often those customers that have been lured away by your competitor will start buying from you again when you offer a strong incentive.
- When you offer a special "deal" on a coupon to invite a customer to do business with you, remember the same customer will probably end up buying additional items that carry a full profit margin.
In addition, you also are being given the opportunity to "sell-up" to a more profitable product or service. You would not have had this opportunity had it not been for the coupon getting the customer through the door in the first place.
- They build traffic around your business setting.
- Finally, they are measurable and accountable. Donít overlook that coupons are the most measurable form of promotion.
It's simply a matter of counting the number of coupons converted to judge the efficiency of the offer. Gaining consumer feedback will guide you in creating future offers that improve your results.
Understand that the media delivering the coupon has very little impact regarding your response. Publications simply deliver your offer to an audience. You have to determine what discount or special will appeal to potential and current customers. This is a methodical process that often takes testing various offers. "Coupon testing" helps develop a targeted offer that will give you the advertising response, sales, and profits you desire.