Do Coupons Work For Small Businesses? Here’s How Coupon Marketing Helps To Promote Your Business

by Guna Nadar - 7/15/2020 1271 Views

Do you know coupons are a clever marketing tactic to attract customers and boost sales? Click here to find out how coupon marketing can help small businesses.

Coupon Marketing

Covid-19 has already changed our lifestyle, the way we work, and the way we shop. It is no wonder small businesses have been significantly affected by the Covid-19. However, you got to pull yourself together and learn to survive in this crisis. This calls for a strategic approach to marketing that help your business thrive and prepare for the future.

That being said, it’s time to pivot your business on how you care for your consumers rather than sales. Gary Vaynerchuk said it right, “The best marketing strategy ever: CARE.” Yes, all these years you were shouting to your customers that you ‘care for them’ and dedicated to serving them. Isn’t it? Now is the right time to prove that you really care about your consumers.

Is there any better option to connect with your customers and show them that you care for them while boosting your sales than coupon campaigns? Coupons are a sophisticated marketing tool that helps drive sales, keep your customers engaged, and build brand image and customer loyalty.

Chapter 1

What Is Coupon Marketing?

Chapter 2

Is Coupon Marketing Effective - Do They Really Work?

Chapter 3

Why Small Businesses Should Use Coupon Marketing?

Chapter 4

What Are The Different Types Of Coupons?

Chapter 5

When To Use The Coupons?

Chapter 6

How To Use Coupons To Promote Your Small Business?

Chapter 1

What Is Coupon Marketing?

What Is Coupon Marketing

Let’s admit it; we always look for discount/coupons whenever we shop. Now that we are suffering in this crisis, wouldn’t be nice if we are offered a product or service for less than the regular cost? Of course, who wouldn’t want it?

Coupon marketing is one of the clever digital marketing techniques to boost sales by offering special coupons on products to entice customers. It is one of the best marketing strategies that take advantage of customer’s interest in saving money on purchases. All you have to do is run an effective coupon marketing campaign with several reward programs, offers, and discounts. Be aware that your customers work very hard to find out the best deals and want to save money on their purchases too.

In short, coupon marketing strategy works on cost-benefit analysis which consumers do before making purchasing a product.

Chapter 2:

Is Coupon Marketing Effective - Do They Really Work?

This is one of the most common questions that every digital marketer asks us. Well, the use of coupon marketing is nothing new. Yes, for decades, it has been practiced by every business and still coupons abide in the form of digital coupons. In fact, coupons are changing the way of shopping, and it has evolved. They are digital, targeted, and especially, influence the customer’s from their shopping experience to brand loyalty and satisfaction.

When a product or service is offered for a discounted price, it has a dramatic impact on customer’s satisfaction and loyalty. Yes, you can build a strong relationship and earn the trust through coupons and convert buyers into loyal customers. After all, that’s all a small business need earning the trust of the customers.

Do you know people tend to flock to a business’s website or store, which they have never heard of or visited, to check their offerings only because they found a good deal or discount? That’s the power of coupon marketing.

Businesses that overlook coupon marketing will lose to a competitor and miss the potential customers.

Here are some of the statics from leading researches that prove the same:-

90% of consumers use coupons
93% of shoppers cite discounts and offers as important factors when deciding whether or not to purchase from a retailer or brand
51% of shoppers often search for coupons online before making an online purchase
75% of consumers expect discounts/offers
64% of consumers said fair pricing motivates them to try a new brand
40% of consumers said they feel smart when they can find the best deals
26% of consumers look for deals in loyalty and reward programs while shopping
46% of the consumers who redeem digital coupons have not purchased the product previously, showing how effectively coupons increase consumer’s desire to purchase a product.
The digital coupon redemption rate is 77% higher than printed coupons

Digital coupons can literally drive customers to your business when done right. However, the key is in the type of reward program you choose to entice your customers to buy more.

Chapter 3:

Why Should Small Businesses Use Coupon Marketing?

You may be wondering how discount coupons could possibly benefit a business, especially small business. Always keep this in mind, when the economy falls, using coupons will increase among customers due to the financial crisis they are in. While the uncertainty prevails, the demand and desire to buy a product, especially with offers never fades away. You should convert every challenge you face into an opportunity to learn and survive in this competitive market.

Attract New Customers

When digital coupons are used properly, you can entice new customers to try your products. Attracting your customers is an important aspect of your marketing plan, especially when 33% of customers say that they will wait for a product to go on a sale before they purchase.

Connect With Old Customers

When was the last time you have tried to connect with your existing customers? Digital coupons are the best way to get connected and let your old customers know that you remember them as well, as studies show that over 15% of retailer’s sales are from royal customers. Use coupons to lure them back!

Create Brand Awareness

Do you know about 68% of believe that coupons build awareness? With its word-of-mouth publicity and the ability to reach mass customers, coupon marketing can dramatically increase brand awareness, especially locally. This is a boon for small businesses who wanted to create brand awareness.

Target Local Audience

You’ll have an opportunity to target a particular market segment, especially the local audience, when you offer digital coupons.

Retain Customers

When it comes to maintaining a relationship with customers, customer retention is essential for every business, regardless of the size. Coupons can help bring back your customers and retain them.

Earn Customer Loyalty

Customer loyalty is one of the success drivers as they bring repeated business continuously. Yes, 68% of coupons generate loyalty.

Chapter 4:

What Are The Different Types Of Coupons?

Catalians

Catalians are long paper coupons which customers can get after completing a purchase at a store. Some catalian coupons offer a dollar amount discount from the next total purchase. It can be used for the announcement of a current or future product or online store promotion.

Manufacturer Coupons

It is issued by a product’s manufacturer or brand. These coupons can be used at a store and when used, the store is reimbursed for the discount. However, this type of coupon can be used only once. Loyalty programs, Catalians, Store coupons, and rebate offers can all be stacked with manufacturer coupons.

Store Coupons

These coupons are issued by the stores, and the goal of this coupon is to make customers purchase at a specific store and to avail the discount. It will be available in printable or digital forms which can be used at the physical store or on website. It can be used with different types of coupons such as, loyalty program discounts, manufacturer coupons, and Catalians.

Printable Coupons

Unlike other coupons, printable coupons are found online which customers have to get it printed and bring to the store or use it online purchase to redeem the offer. It is usually a manufacturer or store coupons.

Digital Coupons

It is one of the most popular types of coupons. Digital coupons aimed at enticing a consumer to make a purchase at the e-store by offering free shipping, a certain percentage discount, or other discount. Digital coupons can be manufacturer and store coupons, and used through a brand’s app, website, and loyalty card. There are different types of digital coupons, including Downloadable coupons, Mobile coupons, Promo codes, and Automatic discounts.

Loyalty Program Promotions

Today, most of the e-store and physical store has a loyalty program that allows earning points whenever a customer makes a purchase. The point can be used later to save money on a future purchase at the same store. This kind of promotion includes reward programs, discounts, and other special incentives which are designed for a reward for brand loyalty.

Now that you know the different types of coupons, it is essential to determine when and how to use it.

Chapter 5:

When To Use Coupons?

The effectiveness of digital coupons can be increased significantly when the recipient, timing, offer, and product balance is right.

Welcoming New Customers

Do you want to impress and attract your new customers? Reward programs and digital coupons are the right way to do it.

When a customer sign up to your store, offering a digital coupon for an exclusive discount, reward points, free shipping, etc. can create a great first impression on your customer, drive instant conversions, and chances are likely they would recommend your products or service to their friends and family. Wouldn’t that give a mass exposure? Indeed.

Introducing New Products

When you are planning to announce a new product or service, it needs a grand launch. But, as a small business, you can’t afford to host a product launch event. This is when the digital coupons, reward programs, and other discounts come to the rescue.

Promoting your product or service with digital coupons and reward programs enhance product awareness while help drive sales. The more the awareness, the more conversions will take place.

Clearing The Stock

Of course, no brand offers digital coupons to clear the inventory, but when you do so with higher discounts, it’s a great way to get rid of the old inventory easily.

Going Online Or Opening A Physical Store The First Time

Whether you are going online or opening a physical store for the first time, you need to encourage customers to try that brand. It’s hard to create new brand awareness without discounts, reward programs, free shipping, etc. Digital coupons are the revenue-boosting tool.

Hope you have got an idea when to use the coupons. Now let’s see how to use it effectively.

Chapter 6:

How To Use Coupons To Promote Your Small Business?

Many small businesses are looking for new customers. The key to attracting new customers to your business is to implement the right coupon marketing strategy to attract and retain them. While creating coupon campaigns seem daunting, it doesn’t have to be that way.

Here are some of the effective ways for small business to create digital coupons to reach the customers and grow significantly:-

Know The Needs Of Your Customers

It is crucial to determine the needs of your customers so that you can incorporate the right coupon marketing strategy into your marketing campaigns. So, find out what sort of discount or exclusive offers will help you to achieve your coupon marketing strategy goals.

Are they looking for money-saving discounts? Or, do they want a good value-added service or product? While some might like discounts and other offers, others prefer for reward programs for being a regular customer. Whatever it may be, knowing what exactly your customers want or respond can help you implement the right coupon marketing strategy.

Make Your Ad Compelling

Do you know why most of the digital ads fail? It’s because of failing to connect with consumers in a meaningful way. The digital coupons should be appealing to your customers, giving a specific benefit. Ensure the headlines are simple yet compelling.

If your business is new and less established, use more aggressive discounts to encourage new customers to try your product or service. On the other hand, a well-established local business can reap the benefits of fewer discounts and reward programs.

Make Sure The Coupon Campaigns Are Location-Based

People search for local business and tend to visit the same if they find good deals. The digital coupons should be presented at the right time to your customers. You can target and try to reach customers when they are within a radius of one and five miles away.

For local small businesses, 5 to 15 miles from the business location is recommended to attract new customers. Once you evaluate the results of your initial location-targeting setting strategy, you can expand based on the size of the target audience and the purpose of campaign.

Find Out What Best Works For Your Business

One size doesn’t fit to all when it comes to coupon marketing strategy. Yes, what worked for your competitor might not work for you. What kind of digital coupons, reward programs, and discounts should you use depends on your product or service that you offer and the type of customers. So, it is crucial to try and find out what works for your business.

Consider the needs of your customer and offer various digital coupons to appeal to a different set of customers. You really need to offer different types of coupons and find out which works for you.

Advertise Your Coupons

The success of any coupon campaign shouldn’t be measured in terms of on how far it has been reached rather how aggressively it is advertised. You must advertise your digital coupons instead of depending on organic traffic.

When compared to click-through rates on a business’s website, advertising coupons can significantly increase the overall activity as it will reach to a wide range of consumers.

Save The Information

Once you establish your campaign, save the information such as name and email address of customers who redeemed the coupon as they are a big asset for ongoing marketing activities.

Set An Expiration Date

Digital Coupons, reward programs, and discounts should be introduced for a specific reason and must have an expiration date. Make sure to come up with a different offer for a different product.

With these tips, you are set to launch and execute successful coupon campaigns.

Final Thoughts

As you see, Coupon marketing is a small investment with huge rewards for local businesses. Be it digital or printable coupons, they have significantly influenced both business owners and customers. However, it’s not guess work. Yes, you have to track and control your coupon campaigns regularly to maintain healthy coupon marketing strategy.

Coupon marketing is much more than campaigns. It requires a comprehensive management system to make the most out of your coupon marketing. Remember, to use social media to make the most out of your coupon campaigns.

By helping and caring your customers, you indirectly help your business, especially during this crisis. Need help in coupon marketing? Contact our team, who are specialized in coupon campaigns. We have helped many businesses to launch coupon campaigns and uplift their revenue successfully.

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About Guna Nadar

Brief Info about Guna Nadar +

I mostly write technical aspects and not much into creative writing. For the past decade I worked along with top notch SEO & Internet Marketing professionals which naturally lured me into the world of Search Engines. When I am not writing I read from comics to philosophy.Antiques, Fishing, hunting are my passions. Currently I am working on Google Penalty protection and .... more info about the author