Customers love to get a bargain. One way of helping them to achieve this is by providing coupons that enable them to claim money off your product or service. Each coupon can be given a defined value, which is deducted from the purchase price. Alternatively, you may offer a discount based on a percentage of the purchase price. The approach that you take is likely to depend on the type of product that you offer.
Customers Love Coupons
If a customer is offered a discount coupon, it can encourage him to try shopping somewhere new. The thought of receiving a bargain can entice customers to risk leaving their usual supplier. His search for a great deal gives your business the opportunity to impress him and turn him into a repeat customer for your own products or services. Loyalty can be encouraged through targeted coupons sent out to customers for products or services that you know they will be interested in. Businesses may be wary about offering coupons because the discount will cut into their profit margin. However, many customers will pick up additional items when they shop with you and, if you turn them into a repeat customer, their value over time will outweigh the discount offered.
Customers Prefer Printed Coupons
It is possible to provide customers with online coupons, either by email or through your website. However, the 2K14 Shopper Marketing Report produced by Valassis reveals that customers prefer to receive coupons in a printed format. This preference holds true even for young consumers in the 18 to 36 age bracket. Known as Millennials, these young consumers tend to be digitally savvy and are able to download information onto a range of devices, including smartphones and tablets, giving them many more options for receiving marketing material. The study shows that Millennials are more likely to prefer online coupons than any other age group. Within this age group, 47% of respondents preferred to download coupons from the internet compared to the overall average of 30%. However, Millennials are just as happy with coupons clipped from a newspaper, with 52% of respondents in this age group preferring this option. Coupons received by direct mail were preferred by 61% of Millennials, making them the most popular option for this age group.
Discounts can help you win new customers and generate loyalty among your customer base. Sending out coupons by direct mail will help to increase the usage rate, even among younger customers. Direct mail will help to ensure that your coupon campaigns are an effective marketing tool.