For some people, coupons are an old-fashioned way to promote a product or service for their business. But coupons are actually a great marketing and customer retentional tool that businesses from all industries should take advantage of. If your market segment tends to be more fragmented with several options for consumers, a great way to stand out from your competitors is by providing a consumer your coupon.
Coupons provide a win-win situation, as you can advertise the product while giving your customers a great deal as well. They also provide you with tracking information and data in order to see the purchase trends of people buying your product. From attracting new customers to getting valuable feedback, coupons are well worth the effort. In fact, the team at Coupon Chief has provided their expert insight into the four ways that you or your business can benefit from a simple coupon (and how to create the perfect deal).
Reaching New Customers
It’s difficult to break people out of their old habits. When it comes to spending habits, consumers tend to gravitate towards brands they are already familiar with. But coupons are a great way to break people out of their old habits, as the price incentive can draw in new sales for your business. The broader the range of people that your product (and coupon) is appealing to, the better your sales will be.
According to Coupon Chief, 91% of people that use a coupon at a new retailer would purchase from the brand again down the line. If a consumer remembers the purchase that they made with your coupon, their positive association with your brand will increase your chance of getting a return customer. This means that your products are less likely to be a one-time purchase, and it also allows for a better chance at increasing brand loyalty.
Advertising a New Product or Service
If your business comes out with a new product you want to promote, a coupon is a great way to not only inform consumers of your product but give them the motive to purchase it quickly at a reduced cost. Since it can sometimes be risky coming out with a new product, lowering the price incentivizes people to try it out. Because of this, the addition of a coupon is a beneficial way to increase sales in specific marketing campaigns.
Understanding Your Consumer
Coupon codes, whether that be a number pattern or barcode, allows you to track your consumers’ purchase. Tracking provides insight into your customer base and their spending habits, where they are, and the time of day they bought the product. This not only helps with your current campaign since you can make adjustments but can help with future campaigns as you can become more familiar with your targeted demographic. Coupon tracking can help you get into the minds of your customers and understand why they purchase what they purchase. Low prices from popular retailers like Amazon make it more of a competitive market, so by understanding your audience, you can work to differentiate yourself within the space and boost sales.
Check out the infographic from Coupon Chief for more detail on the benefits of a coupon, how to craft the perfect deal, and how to use color psychology to gain repeat customers.