What Kind of Coupon to Offer?
When it comes to creating your promotions and online coupons, you’ll have to figure out what to offer; will you send digital coupons out via email, or perhaps you have an app you want people to download in order to access them (creating an app specifically for this is a completely viable option, it will just require more work). Creating physical coupons might cost more than creating digital ones, but you can stick more advertising and business info on them.
According to My Deal Compass, a membership program is a great method that you can look into for your business as it will motivate customers to remain loyal to your business through not only their investment in your membership but also through the exclusive member discounts and promotions you can offer them. If you decide to implement a membership program you must decide on whether you will charge customers for entry into the program, more people might be willing to join a free membership program that offers periodic bonuses, but a paid membership that offers a constant discount can generate even more business as customers will want to get their money’s worth from the program and may return to make purchases or to use your services more often than they may have otherwise.
Distributing the Discounts
Social media is a fantastic method to draw in customers through coupons and discounts. Requiring consumers to follow your Twitter or like your Facebook page to access exclusive promotions can help increase your viewership and customer base, along with driving loyalty. Customers who are always on the lookout for special offers can end up talking to all their friends and family about the phenomenal offers your pages release, which is free advertising and potential new customers. A point in favor of digital distribution for your promotions and offers is the money saved on your end; Media Bistro discusses how distributing a coupon through the mail to a few thousand people can cost a couple hundred dollars. Sending promotions to an email list or through social media is free for you and reaches far beyond snail mail.
If you host or participate in various events and festivals, having stacks of coupons to hand out is a great way to attract interest in your business and get additional, inexpensive advertising. You can also just keep stacks at your business to offer when customers come in.
Redemption and Fickle Customers
When it comes to redeeming promotion codes and coupons, you can run into a unique problem. According to Entrepreneur, a study done by Vanderbilt University’s Owen Graduate School of Management discovered that having a prompt in the checkout section of an online store that asks whether the customer has a promotion code can turn people away from completing a purchase. If a customer sees that there is a promotion available but they don’t have access to the code, they may feel they are being deprived and either not finish the purchase, or go in search of a competitor who offers better prices. A route you can take to avoid this issue is to integrate a system into your checkout where any current promotions you are running can be automatically entered for customers through a click of a button instead of requiring them to input a code. However, you will need to be careful about what these blanket promotions offer, otherwise you could lose a lot of profit when heavy traffic during deep discounts crops up. Integrating a system like this into an online store can work to avoid people being turned off, but it might be useful to keep the blanket discounts to a minimum and utilize other means of distribution to give out the heavier discounts. Keeping fickle customers is a great way to build your brand as fickle customers are generally outspoken so having their loyalty helps you broadcast your brand through a referral like system.
Dealing with redeeming discounts in your business’s physical location is a lot easier. It’s not even necessary for you to implement a special function in your POS; you can just take the coupon, add the discount, and drop the used slip into your Shopify cash drawer. However, integrating the discounts with your business management system can help keep track of usage data and profit margins.
While coupons might seem like a bad idea because you’re making less with the discounts, they are actually one of the best methods to bring consumers, new and old, into your business. Some consumers might never think about doing business with your company, but giving them a discount makes them more likely to at least stop in once to redeem the promotion.