Top 5 Misconceptions about Using Coupons in Your Marketing Strategy
Every day at Valpak, we see how a coupon strategy can help businesses grow, but some business owners are unsure about, or even wary of using coupons in their own marketing. Coupons may not have a place in everyone’s marketing strategy, but more often than not, their reasons are derived from preconceived notions of what coupons mean to them or their customer. We have created a list of the most common misconceptions about coupons in marketing and corrected them with the facts in order to help you formulate an effective coupon strategy.
1. Coupons Undervalue My Customers
Making sure customers are being properly valued is a valid concern. You know that a fully engaged customer is not only more profitable than an indifferent customer but also an advocate for your brand. You may worry that implementing a coupon strategy will alienate fully engaged customers, either by sending the message that you are more focused on attracting new customers than rewarding brand loyalty or by giving the impression that your business is not doing well.
However, this could not be further from the truth. A well-considered coupon strategy can lead to indifferent customers becoming fully engaged by making your company stand out. It can also be part of a marketing strategy that shows its appreciation for its existing loyal customer base by granting them access to superior deals. Rather than push any type of customer away, coupons can offer a method to increase profitability and advocacy from all types of customers.
2. My Customer Base is Too Upscale for Coupons
Everyone likes a good deal. Yes, if you think that clipping individual newsprint coupons from a grocery catalog may appeal more to some than to others, you are correct. It’s important to know there are many types of coupons, and those biases you may expect from your customers are perceptions largely built on the presentation and content of the offer. With an intelligent strategy, coupon style initiatives can enrich the experience customers have of the most upscale products and services.
3. Coupon Holders Are Not Loyal
You may think that people who use coupons are not loyal customers. The thought being that they only care about the cheapest deal, so they will try many brands once and return to few. The truth is that this type of customer is only one of many who use coupons for services they want, and even if a customer really does do business with your company only once, they are not hurting your business. According to the 80/20 rule, or also known as the Pareto Principle, suggests that 80% of events, in this case sales, result from 20% of the causes, in this case customerS. Whether those vital 20% are new or repeat customers depends on your business and the products or services you offer, but you can tailor a coupon strategy to work for either. If your most profitable 20% are loyal regulars, you can tie your coupon strategy to a loyalty program. If you are attempting to draw in new customers, there are many online avenues with established customer bases that can help you get your name out there by featuring an offer from your business.
4. It’s Confusing for Our Employees to Redeem Them
Any dedicated business owner knows that investing in a well-trained, knowledgeable staff is essential and beneficial for the long-term success of the business. However, a large investment of resources is no longer required to quickly and efficiently implement coupon initiatives. There are a multitude of platforms that can make redeeming a coupon as simple as typing in a short series of characters, scanning a barcode, or taking a picture with a smartphone. These are simple techniques that are easily learned and will allow your employees to be seen contributing to the positive experiences of your customers. That makes them look good, which makes you look good.
5. What About Counterfeiting?
While paper coupons can easily be scanned and reprinted, there are many ways to identify individual coupons so that they cannot be counterfeited. For example, holograms, barcodes, and time-limited offers. While it is true that some of these (such as holograms) can be subject to unauthorized reproduction, the necessary equipment is sophisticated and expensive, and therefore far less likely to occur.
Get Started Today
Thinking outside the box will help you create a personal and effective coupon strategy. You don’t have to give something away for free. Talk to someone who specializes in creating high-demand offers (like your Valpak representative) about how they can help you to drive revenue with the offer that best fits your business and clientele.
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