HOW TO PUT THE PROFIT-PRODUCING POWER OF COUPONING TO WORK FOR YOU...Written by Thom Reece
© Copyright 1991/2004 Thom Reece All Rights ReservedCoupons have proven themselves to be highly effective sales tools for every conceivable size and type of business. Because coupons "pull in business" they have gained remarkable acceptance and popularity among astute marketing managers. A simple explanation for their acceptance by advertisers is their overwhelming acceptance and use by consuming public. In fact, Advertising Age (the Bible of advertising industry) reports that 87% of all shoppers use coupons. Another independent marketing research firm, A.C. Nielson Co., reveals that 95% of all shoppers like coupons. And 60% actively look for coupons. A recent article in Wall Street Journal entitled, "In a Pinch, Snip.", states that coupon use rises, as economy in any given area slides. 54% of shoppers surveyed said they had already stepped up use of coupons, and even more are expected to do so. It's very easy to see why coupon advertising is sweeping country. Regular use of good couponing strategy will provide a steady stream of new customers and high quality sales leads. Savvy marketers cite these reasons for heavy reliance on couponing: A. Coupons have effect of expanding or increasing your market area. We know that consumers will travel far to redeem a valuable coupon. B. Coupons will entice new customers that have been shopping at your competitor. It's a proven fact that consumers will break routine shopping patterns to take advantage of a good coupon offer. C. Coupons attract new residents when they are actively in market for products and services. D. Coupons will re-activate old customers. Those customers that have been lured away by your competitor will start buying from you again when you give them a good reason to do so. E. Coupon advertising provides opportunity for additional profits through sale of related items. (Business owners often forget this.) When you offer a special "deal" on a coupon to invite a customer to do business with you, you have to remember that this same customer will probably end up buying additional items that carry a full profit margin. In addition, you also are being given opportunity to "sell-up" to a more profitable product or service. You would not have had this opportunity had it not been for coupon getting customer through door in first place. F. Coupons build store traffic which results in additional impulse purchases. G. Coupons are measurable and accountable Don't overlook that couponing is most measurable and accountable form of promotion. It's simply a matter of counting number of coupons redeemed to judge effectiveness of offer. Wise use of this consumer feedback will guide you in creating future offers that improve your results. Understand that media delivering coupon has very little to do with response. Publications simply deliver your offer to a specific audience. It's up to you to determine what offer produces best response from that audience. You do this through methodically testing various offers. Savvy use of this "coupon testing" technique will give you specific knowledge you require to greatly improve all of your advertising response, your sales, and your profits. How do you go about creating a coupon promotion that will work for YOU? Here's what I like to call... THOM'S TWELVE TIPS FOR EFFECTIVE COUPONING: TIP#1...MAKE A SOLID OFFER! * OFFER DISCOUNTS..."$50.00 OFF!", "60% OFF!", (percentage discounts are only good when they are high percentages and value of product or service is well known.)Dollars Off discounts work best.
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