© Copyright 1988/2005 Thom Reece All Rights Reserved

Among variety of techniques available to you as a marketer, there is one that is virtually guaranteed to increase your business...testimonials !

To clearly understand why testimonials are so powerful we must first look at basic perceptions of our audience.

Here's how "John Q. Customer" might describe his attitude:

"In addition to making me an enticing offer, you must prove to me that you are okay to do business with. You must eliminate any fear that I have about doing business with you. The basis of my fear is doubt and skepticism...two essential components for survival in today's tough business marketplace.

I come by my fears honestly and from experience. I have been conned before. I have been lied to before. The quality of products and services that I have purchased in past have not always lived up to claims made for them.

Hardly a day passes that nation's press doesn't reveal some major breech of ethics by business and political leaders. Dishonesty and misrepresentation are commonplace. So why, in face of all this negative experience, should I believe your advertising claims? "

These are sobering conditions in which to operate. It's easy to understand why customers temper their buying decision with caution. They don't want to lose money and, more importantly, they don't want to feel foolish. Eliminating this natural fear and skepticism is job that testimonials do best. The reason is simple: If you say you are good, people ignore your self-serving back-patting. When others say you are good...it's credible. This goes to very heart of why testimonials are so powerful...they give us credibility and believability.

When you deliver a good compelling offer that is both credible and believable, your sales and profits will increase.

TYPES OF TESTIMONIALS

There are four different types of testimonials. They are:

Customer: By far strongest category of testimonial is satisfied customer. In consumer offers a 30% increase in business is not unusual, and business-to-business offers often double or triple results through use of good customer testimonials.

Celebrities: Celebrities are not as believable as customers. They are not credible because they are paid. I may not like celebrity which could negatively affect my attitude towards your company or product. They generally increase awareness, but it may not be good awareness.

Coupons 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.