Discounts and coupons are a highly effective way of attractive new customers and generating sales. And why won’t it be.
When was the last time you bought something without checking if there are coupons available?
A study revealed that around 75-80% people shop with coupons. But if not used right, it can also be dangerous. In order to have the lowest price in the market, many retailers take a hit on their margins and therefore can’t sustain for a long period of time. It is important to have a solid product, good services and then use coupons to smartly reach your target audience. Here are 5 ways you can benefit from giving out coupons.[toc]
Reach New Customers
If you have some risk taking ability and want to aggressively penetrate in the market, launch a coupon scheme for new customers. Use various different platforms such as Twitter, Facebook, sms, etc. to spread the word. Another benefit of reaching customers through social media is that you can improve your social presence and get followers on social media pages as well.
As attractive as new customers may be, your loyal customers are the ones that will give you real business in the long run. Therefore devise a system to appreciate their loyalty. Give special coupons to repeat customers so that they know you value them. All major brands use this technique to induce customer loyalty. At any given point of time you can find DMart, Big Bazaar or Croma offers online available for its regular customers.
Remove Stagnant Inventory
Many a time, you might have products sitting in your garage that just don’t attract the crowd. This inventory, even if not perishable, must be removed. It takes space, cost and needs be dealt with at the earliest. Here’s an idea. Why not give out special coupons for those items? We all know people love low prices and odds are your stagnant products will be out and moving within a few days if you have an effective reachout strategy for your coupons and discounts.
Improve Sales Of Complimentary Items
Every businessman reading this knows what I’m talking about. Your shoes and socks are selling fine, but polishes just won’t go. Your shampoo and conditioners are selling like hot cake but no one is buying your hair gel.
Why not offer coupons for your non selling complimentary items?
Just identify your popular products and figure out a way to associate your other products with them to make the sale.
Activate Old Customers
Infinite number of your customers are lured away by your competitors for some or the other reason. Maybe they offered better pricing, better products or simply because they’re closer to their apartments. But it doesn’t matter. There are many ways you can get your old customers back and one of them is coupons.
For example, send them a message or email offering them special coupons for the next five purchases. It is most likely that they turn into your loyal customers within that period.
Trial and error is the only way to learn what works for your business and what doesn’t. So give the above mentioned tips a try and at least a few of them should prove to be of great help to you. And remember, despite these tricks and tactics, the only way to retain a customer is quality. So never compromise on your products or services.