How To Put The ProfitProducing Power of Couponing To Work For You…
by: Thom Reece
Coupons have proven themselves to be highly effective sales tools for every conceivable size and type of business.
Because coupons กpull in the businessก they have gained remarkable acceptance and popularity among astute marketing managers. A simple explanation for their acceptance by advertisers is their overwhelming acceptance and use by the consuming public. In fact, Advertising Age (the Bible of the advertising industry) reports that 87% of all shoppers use coupons.
Another independent marketing research firm, the A.C. Nielson Co., reveals that 95% of all shoppers like coupons. And 60% actively look for coupons.
A recent article in the Wall Street Journal entitled, กIn a Pinch, Snip.ก, states that coupon use rises, as the economy in any given area slides. 54% of shoppers surveyed said they had already stepped up use of coupons, and even more are expected to do so.
Itกs very easy to see why coupon advertising is sweeping the country. Regular use of good couponing strategy will provide a steady stream of new customers and high quality sales leads.
Savvy marketers cite these reasons for heavy reliance on couponing:
A. Coupons have the effect of expanding or increasing your market area. We know that consumers will travel far to redeem a valuable coupon.
B. Coupons will entice new customers that have been shopping at your competitor. Itกs a proven fact that consumers will break routine shopping patterns to take advantage of a good coupon offer.
C. Coupons attract new residents when they are actively in the market for products and services.
D. Coupons will reactivate old customers. Those customers that have been lured away by your competitor will start buying from you again when you give them a good reason to do so.
E. Coupon advertising provides the opportunity for additional profits through sale of related items. (Business owners often forget this.) When you offer a special กdealก on a coupon to invite a customer to do business with you, you have to remember that this same customer will probably end up buying additional items that carry a full profit margin.
In addition, you also are being given the opportunity to กsellupก to a more profitable product or service. You would not have had this opportunity had it not been for the coupon getting the customer through the door in the first place.
F. Coupons build store traffic which results in additional impulse purchases.
G. Coupons are measurable and accountable Don’t overlook that couponing is the most measurable and accountable form of promotion.
Itกs simply a matter of counting the number of coupons redeemed to judge the effectiveness of the offer. Wise use of this consumer feedback will guide you in creating future offers that improve your results.
Understand that the media delivering the coupon has very little to do with the response. Publications simply deliver your offer to a specific audience. Itกs up to you to determine what offer produces the best response from that audience. You do this through methodically testing various offers. Savvy use of this กcoupon testingก technique will give you the specific knowledge you require to greatly improve all of your advertising response, your sales, and your profits.
How do you go about creating a coupon promotion that will work for YOU? Hereกs what I like to call…
THOMกS TWELVE TIPS FOR EFFECTIVE COUPONING:
TIP#1…MAKE A SOLID OFFER!
* OFFER DISCOUNTS…ก$50.00 OFF!ก, ก60% OFF!ก, (percentage discounts are only good when they are high percentages and the value of the product or service is well known.)Dollars Off discounts work best.
* OFFER BONUSES…กBuy One/Get One Free!ก, or ก2 Free with Each Case Ordered!ก, กFree Batteries When You Buy One Super Flashlightก, or กFree Drop Cloth with Each Gallon of Super Paintก, etc.
* OFFER PREMIUMS…Offer premiums for a presentation, for a trial order, for a subscription, for a demonstration, for a new customer referral, for an order amounting to $xxx or largerก, etc.
* OFFER FREE INFORMATION…กFREE bookletก, กFREE brochureก, กFREE estimateก, กFREE detailsก, กFREE samplesก, กFREE trialก, กFREE consultationก, กFREE quoteก, etc.
TIP#2….USE BOLD, COMMANDING AND SPECIFIC HEADLINES!
* กSave $50.00 on Any Portable TV….This Month Only!ก
* กFREE BROCHURE…กBeauty Secrets for Career Womanก!ก
* กFree Catalog Saves YOU 70% on Office Supplies!ก
* ‘rent Two NEW RELEASE Video MoviesGet One FREE!ก
* กBuy One Dinner EntreeGet One FREE!ก
* กBuy Five Cases of Copier PaperGet the Sixth Case Absolutely Free!ก
TIP#3…USE LINE ILLUSTRATIONS OR PHOTOGRAPHS.
* Illustrations work best when you show products inuse.
* Illustrations enhance credibility, aid understanding, and create desire.
TIP#4…USE YOUR LOGO IN YOUR COUPON.
* Use of logo: builds company identity and awareness in the marketplace, enhances your image, lends credibility to your offer, and improves response.
TIP #5….MAKE EFFECTIVE USE OF WHITE SPACE.
* Don’t clutter. Don’t cram.
TIP#5…SELL THE BENEFITS.
* Save time, save money, increase profits, protect your family, improve your standard of living, be happier, improve your health, increase your income, increase your comfort, more convenient.
TIP#7….APPEAL TO THE SELFINTEREST OF YOUR CUSTOMER.
* Your customer is only interested in what you can do for him or her. Your customer will only buy the benefitsofuse of your product or service. Let me say that again…your customer is only interested in the benefits of use of your product….not the product itself.
TIP#8…MAKE EFFECTIVE USE OF THE 18 MOST POWERFUL WORDS IN ADVERTISING.
* free, now, new, how to, save, guarantee, money, easy, simple, you, proven, love, results, discovery, fast, amazing, sex, profit.
TIP#9…ALWAYS UPSELL.
* Offer extras when a customer requests information or places an order. Always suggest related items. Point out the added features and benefits of a higher priced item and then show the customer specifically how these features will make his life easier, safer, etc.
TIP#10…SPREAD YOUR SPECIALS AROUNDCONSIDER THE TRAFFIC PATTERN IN A RETAIL STORE.
* Set up product displays so that you force your customer to walk the entire expanse of your store. Your กimpulseก buys will increase dramatically when you expose your customer to more products by well planned placement of กsale itemsก.
TIP#11…CAPTURE YOUR CUSTOMERS NAME, ADDRESS, AND TELEPHONE NUMBER. DEVELOP AN INHOUSE MAILING LIST FOR ONGOING DIRECT MARKETING USE.
* Your customer list represents your most valuable asset. Your greatest potential for sales and profits lies in the customer database. To ignore this potential is pure folly.
TIP#12…DON’t STOP AFTER THE SALE.
* Create a planned program of continuous followup to your customer list.
* Use ridealongs, invoice stuffers, new catalogs, new product brochures, special sale flyers, preferred customer sales and discounts, customer appreciation events, more coupons. Keep your customers coming back to YOU!
© Copyright 2005 Thom Reece All Rights Reserved
About The Author
Thom Reece is the CEO of OnLine Marketing Group, a direct response marketing agency with headquarters in Hawaii. He is the creator of the Online Marketing Resource Center [ http://www.ecomprofits.com ] . Thom can be reached by email at: thomATecomprofits.com
This article was posted on September 02
by Thom Reece