There are a lot of different elements of marketing that entrepreneurs have to figure out. Most of them are easy to manage, and some of them can get exponentially complicated. One of the many options available is coupon marketing. Even though this seems straightforward, many companies are reluctant to the idea that they should be working within the realms of this opportunity. Without focusing on coupons, you’ll be missing out on a huge part of the marketplace, especially if you’re in a niche that is heavily competitive in terms of pricing. Being the “boutique” or “high end” stand out, is one way to make sure that your business doesn’t get patronized by the general public. There are several reasons why you should look into coupon marketing, and they may be outside of what you may expect. Consider the following reasons carefully as you make moves in any niche today.
The first reason is simple, you want people to return. Repeat business is the lifeblood of all companies, whether you’re working on the internet or working within brick and mortar. This is especially true if you have a lot of inventory to go through and need to get things moving fast. When a customer is rewarded with a discount, they will be more likely to return and shop than if you didn’t have any further incentive. Incentives like saving money on another purchase, within a limited time frame is one way that retailers compete with online merchants all the time. Encouraging existing customers to return is one way a coupon can send the message of 1,000 words.
Create Impulsive Shopping
One of the things that offering discounts will do is create an impulsive shopping decision. Throw in a coupon with a limited time stamp, and you will definitely get this. Impulsive shoppers are a dime a dozen, and when you are carefully plotting your discounts to have a time frame that is very limited, you’ll see a rush of business flood your site. Even if your discounted rate was meant to be spent within a certain date in the future, you’ll find that people respond well to this. A coupon that has no real expiration date or urgency, may never be used or could not factor into the impulsivity of shoppers that want to save a few bucks. It’s with that in mind that you should always keep in mind the time limit frame on all discounts.
Establishes Value of Ownership
When the cost of ownership on an item drops, even if it’s for a limited time, people respond by answering the call to action. Competition can be tough today, especially if you’re working on a retail sales level. If you’re competing neck and neck with other companies, cost of ownership poses a challenge. That’s where a coupon can help, as it can offset the overall costs, and still allow room for profit. Consumption rates usually rise in favor of lower cost of ownership, as it increases the inherent value of a product. This is especially true when the product is being sold at discount online. You’ll find that people seem to respond more often to this than by just dropping the initial price point.
Saving People Money
Even if the aforementioned things don’t strike you, then consider that as a business you can save people money. How noble, right? Well, the thing here is that you will be helping people out and they remember that. It may not be as cut and dry as this, but when offering people discounts through the form of a coupon, even if it is in exchange for information, they are more likely to be loyal to your store. Patronage can flow right in line with the frequency of discounts, communication and more. It’s an interesting thing that should not be taken lightly, especially when times get tough and less and less shoppers browse options.
The above reasons are just a few things to consider in regards to why businesses should work with coupon marketing today. Coupons do a great deal of good for any company, and missing out on this point of promotional consideration is easy. If you haven’t set up a plan of action in this regards, then perhaps you should think about working on a plan to gain market share in your niche.
There are a lot of different reasons that go into the decision to set up a good coupon marketing plan, but the aforementioned should suffice to get started. Testing different options can help see what is the best way to approach this option.
Nick Dean works at Couponedo, an online coupon maker that helps small businesses market more effectively. This is the first article in his coupon marketing series for Entrepreneur York.