Discount coupon business has been around for many years. The logic, is to convince the buyer to act now by providing a discount. Business Coupons Services believes that one type of discount coupon is not best for all businesses.
A small business owner has multiple things to consider. You may want to limit the deal to a certain number of customers, a season or specific time. You don’t need to offer a deal on a Friday or Saturday night when your restaurant is already full, or a discount on a hotel room at a time when all your rooms are normally booked.
The type of discount offered — be it a buy one, get one (BOGO) free or a price cut — also depends on the business and the clientele. A diner might want to offer a BOGO deal, but a pizza shop might do better with $2 off as fewer people need two pizzas.
Small business owners should consider alternatives to dollar-off and percentage discounts, such as adding free services for which they would normally charge. A small hotel that is concerned about keeping its rate intact could offer free parking or Wi-Fi at very little cost, or a spa could add a service to a package.
That strategy may not work for businesses such as restaurants, which have fixed food costs. But coupons to get people in on slower nights is an excellent strategy. Small business owners should construct coupon offers based on the ability to handle increased business with a focus on what days they have available time to service the coupon client. Remember with social media business recommendations are important and you want to handle all new business with the intent to get them to return.
Another mistake of small business owners is not advertising consistently. Using coupons to drive business over the year rather then just one time.
Local deals promotions can help small businesses achieve exposure and stimulate sales. Local deals coupons increased revenues almost 40 percent higher than it would have earned had it not run the promotion. In addition, the increased exposure led existing customers who normally pay full price to more than triple their rates of purchase.
Coupons promotions is a great way to acquire brand awareness quickly which is vital to new startup. Here is a real time example: Coca-Cola gave out coupons when they first began, recipients could redeem for one free glass of Coke. Coke had solidified its brand as a household name. Today, Coke is the world’s best-selling carbonated beverage thanks to more than a century of clever marketing strategies including coupons, deals and markdowns.
Statistics reveal that 57 percent of shoppers are motivated to complete a first-time purchase when they can redeem a coupon. In the absence of a special deal, some shoppers feel a first-time buyer discount is a prerequisite for brands looking to acquire new customers. That is because 62 percent of consumers invest two or more hours each week scouring the web for promotions. Fortunately, retailers can rest assured that any coupons issued may still attract loyal, lifelong customers. In fact, 91 percent of buyers who redeem coupons say they would visit the same retailers again.
Coupons offering something with the added value of a Free extra item are big attractions to consumers. Therefore, consumers value something for free, which is why so many brands take advantage of the free gift with purchase tactic to increase average order totals among shoppers. Shoppers... much prefer getting something extra free to getting something cheaper.
Ultimately, the best discounts, promotions and free products strategies help you:
- Avoid bargain hunters who may overuse your customer service resources and never convert into loyal, returning customers.
- Preserve your brand’s integrity by limiting the number of coupons customers can use and steering clear of deep discounts.
- Encourage new product trials, repeat purchases and higher average order totals through incentives that motivate buyers to their order.