Have You Considered Using a Coupon or Discount lately?
No discussion on internet marketing would be complete if you didn't bring up the topic of Coupons and Discounts. Coupons and discounts are a great way to get prospects to take near immediate action online. It's hard to debate that people are LESS likely to buy your products or service if they have a coupon in hand. In spite of a coupon’s versatility beyond just discounting, few businesses choose to make use of them. You can do the same - use coupons to drive sales, track marketing effectiveness, and create lifetime value customers.
Coupons are a Waste, Right?
A few years ago I tried to convince a client to provide coupons to his customers. The client is involved in the restaurant business. Up until that point in time he considered any type of coupon as bad. We ran a test . . . give away a 25 cent to produce product and see what happens. The average ticket was over $30 per party. Then the client said this . . . “What happens when people make copies and there are thousands of coupons floating around? I think that makes us look cheap.” I would argue that thousands of people with a coupon for your restaurant is a good thing - especially when you're raking in an average of $30 per party.
A number of business owners think coupons and discounts are a money losing proposition. If you’re loosing money on coupons or discounts, you’re doing something wrong. (This doesn't include loss-leaders) The proper pricing of the product or service needs to be done with discounting in mind from the beginning. If you set your price point intentionally high, you can avoid dipping into your profit margin. If you're going to start using coupons, target high margin items. Is there anything you can set to a higher price and then coupon?
Tracking Marketing Effectiveness
Coupons can also be used to track your marketing efforts. I'd argue couponing is less about giving a discount and more about finding out what advertising channels work. Have you ever checked out of an online store and entered a promotional code or discount coupon? That is most likely tied back to a strategic marketing campaign. Consider using a free consultation (coupon) as a way to lure perspective leads.
Creating Lifetime Value Customers
You can’t look at the single transaction as the ultimate indication of success. Too many business owners think in terms of “If I could just get each person to buy X.” The question that needs to be asked is what is the value of your customer over time? The value of a one time sale is minimal, the value of a lifetime customer is massive. Coupons can be used to assist you in creating lifetime value customers.
Use coupons to drive sales beyond just one transaction. Coupons should be part of your long term strategy. It's all about the lifetime value of a customer.
Want to get more great info? Check out the articles below:
- Why Well Planned Events Fail
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- Getting Them to Buy Tickets Early
- Turn Your Event Into an Experience
- Leveraging Your Sponsor's Digital Resources
- The Event Promotion System - Get 'FREE' Event Promotion & Marketing Video Training