There’s no denying that coupons are popular. According to market research company A. C. Nielson Co., 60 percent of consumers actively search for coupons and 95 percent of consumers look at coupons favourably. That’s a lot of people who are interested in saving money!
As a product manager, one way you can increase sales and encourage customer loyalty is by offering coupons to your customers. This sends the message that you’re committed to giving them the best possible value, and who doesn’t love a good deal?
Coupons are a great way for small businesses to attract new customers, boost sales, and reactivate lapsed customers. Coupons are relatively inexpensive to produce and distribute, and they offer a clear way to track results. Businesses can use coupons to target specific customer groups, promote new products, or drive traffic during slow periods.
Coupons are like tiny little helpers that nudge people to buy things they might not have otherwise. They do this by affecting the cost-benefit analysis that potential customers perform before making any purchase decision. In general, people will only visit a store and buy products when the benefits of doing so outweigh the costs, including the time and money spent making a purchase. But with coupons, businesses can sweeten the pot a bit and help tip the scales in their favor.
Small businesses can use coupons to help bring in new customers and grow their traffic. By lessening the cost of visiting a store or buying a product, coupons increase the benefits for customers and make them more likely to visit. Here are five ways that coupons can help boost traffic to small businesses.
Ways Coupons Work for Business
1.Offer discounts to customers –
Coupons are a great way to attract new customers. By offering a discount, you can entice people who wouldn’t normally visit your business or use your services.
Use cost-benefit analysis – When determining whether or not to offer a discount, it’s important to consider the cost-benefit analysis. Will the new customers you attract offset the cost of the discount?
Businesses can’t discount every product at all times, so coupons are a great way to strategically discount.
2.Entice New Movers –
New movers are an important market segment for small businesses. They must form new business relationships because they’re new to an area.
It’s beneficial for businesses to reach new residents first, as they’re more likely to gain a loyal customer. Additionally, businesses that offer a discount have an even better chance of being successful.
One of the best ways to market to new movers is by offering coupons in retailers they are likely to visit, such as supermarkets and convenience stores. This way, you have a much better chance of being seen by new movers and gaining their loyalty.
3. Pull Competitor Traffic –
One-way small businesses can compete is by utilizing online channels to communicate their discounts and offers. Social media, email marketing, and even paid online ads can be more affordable and effective options for small businesses looking to reach new customers.
Coupons clearly and easily allow small businesses to communicate competitive offers that can steer more customers to use a particular business. With coupon advertising, small businesses also gain more control over where their discounts are distributed.
4. Re-activate Former Customers –
Coupons can be a great way to remind customers about your business and bring them back into the fold. They provide an extra incentive for customers to visit your store again and can often lead to them becoming current customers once more. Simple reminders and offers can go a long way in customer retention for small businesses, so don’t underestimate the power of coupons!
5. Sell More Expensive and Related Items –
Last, but not least, coupons can help your business sell more products. Many times, when a customer visits a store because of a coupon, he or she ends up purchasing more than just the product that was discounted on the coupon.
This is especially noticeable for restaurants and places that serve food. For example, when a restaurant offers free or discounted entrees, in almost all cases coupon redemptions result in more purchases—wine, appetizers desserts—for a better dining experience.