Coupons “pull in business” and are accepted as a powerful marketing tool by many astute marketing managers. One simple explanation could be their overwhelming demand and acceptance by the consumer. It is reported that 87% of all shoppers use some form of coupons.
A.C. Nielson Co. reveals that 95% of all shoppers use coupons on a regular basis while 60% actively look for coupons. The Wall Street Journal recently wrote an article called ‘In a Pinch, Snip’ which states that coupon use is on the rise as the recession takes hold. In their article, they reported that 54% of shoppers surveyed had begun using coupons.
So what do advertisers need to know about coupons? Below are the top 10 things advertisers need to know about couponsCoupons have the effect of expanding or increasing your market area. It is a proven fact that consumers will travel far to redeem a valuable coupon!
- Coupons have the effect of expanding or increasing your market area. It is a proven fact that consumers will travel far to redeem a valuable coupon!
- Coupons will attract new customers to see what your business has to offer that is different from your competitor. Many consumers will change their routing shopping habits to take advantage of a good coupon offer.
- Coupons attract new residents just moving into the area or travelers in the area when they are in need for the type of products and services your company offers.
- Coupons have the ability to pull back former customers. Customers that have been shopping at your competitors will come back to see what your company has to offer again.
- Coupon advertising provides the opportunity for additional ‘revenue’ that add up to profits through the sale of related items. Use your coupon to draw a customer in that are part of a series or group of useful items. (Business owners often forget this.)
- Coupons allow your business the ability to ‘sell-up’ to a better fit product or service for the consumer.
- Coupons allow your business the opportunity to meet and communicate with consumers to reveal their needs and desires. Just remember to redeem the coupon in some form for the sold-up product!
- Coupons build store traffic which results in additional impulse purchases.Coupons can be measured. Do not overlook this vital component to coupon advertising!
- Coupon delivery methods have very little to do with their overall value. Production and delivery are not as valuable as it is for coupons to have a specific audience. The coupon itself will determine what offer produces the best response from that audience.
- Coupons should be tested with various offers. Coupon testing gives a unique view of what works and what does not. Do not be discouraged. The proven fact is that coupons work, your job is to find the formula for your business and watch it improve!
Tomorrow we will explore the 10 steps to effective coupon campaigns.
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