Many people think using coupons is out of date in today’s digital world. But there are some very good reasons why your business should offer coupons. Here are five of them.
To increase sales
When you use coupons, your hope is that you will drive more customers to your store. While you are reducing the price on the item the coupon is for, you are hoping for a sufficient sales volume increase to offset the discount. Another hope is that people who come to your store to use the coupon find other things they want to buy.
To get new customers
As long as coupons have been around, one of their main purposes has been to drive new customers to the store. For many people, a coupon that offers a freebie or a significant discount is the only way to get them through the door. While many of those coupon users will visit your store once to use the coupon and never return, at least some will be converted into regular customers, which is something that may not have happened without the coupon offer.
To reward existing customers
In addition to recruiting new customers, coupons serve as a reward for existing customers. If people know they can expect a special discount every once in a while, it will keep them loyal to your store. Also, existing customers may use coupons to buy items they wouldn’t normally buy.
To gauge the effectiveness of advertising
Coupons are one of the best ways to track how effectively your advertising efforts are reaching customers. When a customer has to use a coupon, whether it is a printed or electronic one, it allows you to track where the customer saw your ad. That allows you to be more effective in your future decisions on where to spend your marketing dollars.
To compete with larger businesses
There’s a reason why big supermarkets and big box retailers use coupons — because they work. If you don’t use coupons in your business, you are going to miss out on the bargain shopper as well as your own customers who feel compelled to shop somewhere else because they are offered a coupon.
If you need capital to fund your marketing campaign to offer coupons or to increase your inventory to prepare for the possibility of increased sales from a coupon campaign, Business Credit and Capital can help.