But doesn’t it seem counterintuitive to do that by offering a discount? Surely we’re in this to make money, not give it away!
You’d be forgiven for reasoning this way, but actually, coupon advertising can be a great way of introducing new people to your business. Give them great service and they could turn into a valuable repeat customer.
Read on for our four simple rules for small business couponing!
Rule 1 – Offer a Realistic Discount
This isn’t just rule one – it’s the golden rule.
You only have to Google the Hoover flights scandal of the 1990s to know that doing the math before offering a deal is essential.
For example, if you know that your profit margin for your biggest selling item is 20%, how much of a discount can you really offer to customers? Maybe at 10% off limited time coupon will work – 15% plus may close you down.
Many businesses, whether service providers or retailers, get into trouble by offering unrealistic discounts. Make sure you run the numbers carefully and only offer a discount you can afford.
Rule 2 – Give Them a Great Experience
Coupons will undoubtedly bring new customers through the door – now it’s over to you to keep them coming!
Before launching any coupon campaign, make sure that you’re ready to give these new clients an experience they’ll remember, and look to repeat at full price.
Make sure that you don’t treat them as ‘discount’ customers – they will feel this, and it will definitely put them off.
Rule 3 – Make the Offer Clear
Make sure that the offer is crystal clear with absolutely no ambiguity!
The last thing you want is a frustrated or disappointed new customer because they’ve misunderstood exactly what you’re offering.
Make sure you include a ‘coupon disclaimer’ too. This sets out exactly how the coupon can and can’t be used, that it has no intrinsic cash value and that it cannot be combined with any other offer.
Rule 4 – Design an Awesome Coupon!
When thinking about how to make coupons for your business, think about your target customer and what will appeal to them.
Depending on the nature of your business, you may want to include an eye-catching graphic. Make it clear exactly what the coupon is for and help them visualize themselves enjoying the experience.
Keep text to a minimum and consider using a larger font for the main point of the discount. Avoid cluttering the coupon with too much information, and keep the coupon disclaimer clear, but unobtrusive.
If you’re an online business, then offering discount codes through your website or app can also be a great option!
The Bottom Line: Why Coupon Advertising Pays
Used carefully, coupon advertising could be a fantastic way to introduce new customers to your business, and turn them into lifelong ones!
Nothing beats the thrill of a coupon, so crunch the numbers and see whether you can have a great coupon marketing campaign in place for the next big event!
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