Couponing has always been a very powerful tool for increasing sales and attracting new customers. A closer look into many companies' sales strategies substantiates the effectiveness of this old method.
But new models have emerged with the advent of better technology. Previously, businesses which wanted to attract both new and existing customers by offering coupons had very limited ways to reach customers. Customers needed to come across the sales flyers or had to subscribe to magazines or newspapers. Holiday issues of newspapers were always stuffed with various coupons. Nowadays however, there are many specialised websites that allow you to promote your discount codes and coupons
If you are considering using the couponing strategy for your own business, here are some tips which could enhance your chances of success.
1. Choose the right product
Finding the right discounting strategy
is very important. Since the profit margins are not the same in all the products, you need to pick the right product for discount. For couponing, it would be advisable to select high margin products, because it generally allows you to offer discounts without incurring unsustainable losses. However, don't make the mistake of offering discounts for your premium product since this could damage your brand and lower the full price sales in future.
2. Don't do it too frequently
It's quite common to see many businesses offer discounts very frequently. The main reason for this is the desire to make more sales
. However, overdoing it could disrupt the behaviour of those customers who prioritise quality over price. Keep this in mind when deciding the frequency of couponing.
3. Spread the word
Digital couponing has a great edge over the previous couponing methods. Your coupon can easily go viral without incurring significant cost. However, it is not just the websites you have contacted for couponing that are responsible for promoting your campaign. Consider advertising via social networking sites
such as Facebook or Twitter. If your customers are happy, they will further spread the word to others.
4. Be prepared for a surge
Your coupon may unexpectedly go viral, thus resulting in a surge in demand. If you don't have enough stock to cater that demand, then you might end up disappointing your customers. A dissatisfied customer can spread words faster than any satisfied one. So projecting the demand and making preparations accordingly is very important.
5. Create a visually attractive coupon
Digital couponing makes it very easy to customise your coupons. You can design coupons in various ways for different groups of people. A visually attractive coupon
is more likely to be downloaded than one that is not.