How To Put The Profit-producing Power Of Couponing To Work For
By Thom Reece, Sat Dec 10th
Coupons have proven themselves to be highly effective salestools for every conceivable size and type of business. Because "pull in the business" they have gainedremarkable acceptance and popularity among astute marketingmanagers. A simple explanation for their acceptance byadvertisers is their overwhelming acceptance and use by theconsuming public. In fact, Advertising Age (the Bible of theadvertising industry) reports that 87% of all shoppers usecoupons. Another independent marketing research firm, the A.C. NielsonCo., reveals that 95% of all shoppers like coupons. And 60%actively look for coupons.
A recent article in the Wall Street Journal entitled, "In aPinch, Snip.", states that coupon use rises, as the economy inany given area slides. 54% of shoppers surveyed said they hadalready stepped up use of coupons, and even more are expected todo so. It's very easy to see why coupon advertising is sweeping thecountry. Regular use of good couponing strategy will provide asteady stream of new customers and high quality sales leads. Savvy marketers cite these reasons for heavy reliance oncouponing: A. have the effect of expanding or increasing yourmarket area. We know that consumers will travel far to redeem avaluable coupon. B. will entice new customers that have been shopping atyour competitor. It's a proven fact that consumers will breakroutine shopping patterns to take advantage of a good couponoffer. C. attract new residents when they are actively in themarket for products and services. D. will re-activate old customers. Those customers thathave been lured away by your competitor will start buying fromyou again when you give them a good reason to do so. E. Coupon advertising provides the opportunity for additionalprofits through sale of related items. (Business owners oftenforget this.) When you offer a special "deal" on a coupon toinvite a customer to do business with you, you have to rememberthat this same customer will probably end up buying additionalitems that carry a full profit margin. In addition, you also are being given the opportunity to"sell-up" to a more profitable product or service. You would nothave had this opportunity had it not been for the coupon gettingthe customer through the door in the first place. F. build store traffic which results in additionalimpulse purchases. G. are measurable and accountable Don't overlook thatcouponing is the most measurable and accountable form ofpromotion. It's simply a matter of counting the number of redeemedto judge the effectiveness of the offer. Wise use of thisconsumer feedback will guide you in creating future offers thatimprove your results. Understand that the media delivering the coupon has very littleto do with the response. Publications simply deliver your offerto a specific audience. It's up to you to determine what offerproduces the best response from that audience. You do thisthrough methodically testing various offers. Savvy use of this"coupon testing" technique will give you the specific knowledgeyou 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 workfor YOU? Here's what I like to call... THOM'S TWELVE TIPS FOR EFFECTIVE COUPONING: TIP#1...MAKE A SOLID OFFER! * OFFER DISCOUNTS..."$50.00 OFF!", "60% OFF!", (percentagediscounts are only good when they are high percentages and thevalue of the product or service is well known.)Dollars Offdiscounts work best. * OFFER
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BONUSES..."Buy One/Get One Free!", or "2 Free with EachCase Ordered!", "Free Batteries When You Buy One SuperFlashlight", or "Free Drop Cloth with Each Gallon of SuperPaint", etc. * OFFER PREMIUMS...Offer premiums for a presentation, for atrial order, for a subscription, for a demonstration, for a newcustomer referral, for an order amounting to $xxx or larger",etc. * OFFER FREE INFORMATION..."FREE booklet", "FREE brochure","FREE estimate", "FREE details", "FREE samples", "FREE trial","FREE consultation", "FREE quote", etc. TIP#2....USE BOLD, COMMANDING AND SPECIFIC HEADLINES! * "Save $50.00 on Any Portable TV....This Month Only!" * "FREEBROCHURE...'Beauty Secrets for Career Woman'!" * "Free CatalogSaves YOU 70% on Office Supplies!" * "Rent Two NEW RELEASE VideoMovies--Get One FREE!" * "Buy One Dinner Entree--Get One FREE!"* "Buy Five Cases of Copier Paper--Get the Sixth Case AbsolutelyFree!" TIP#3...USE LINE ILLUSTRATIONS OR PHOTOGRAPHS. * Illustrations work best when you show products in-use. *Illustrations enhance credibility, aid understanding, and createdesire. TIP#4...USE YOUR LOGO IN YOUR COUPON. * Use of logo: builds company identity and awareness in themarketplace, enhances your image, lends credibility to youroffer, 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 yourhealth, increase your income, increase your comfort, moreconvenient. TIP#7....APPEAL TO THE SELF-INTEREST OF YOUR CUSTOMER. * Your customer is only interested in what you can do for him orher. Your customer will only buy the benefits-of-use of yourproduct or service. Let me say that again...your customer isonly interested in the benefits of use of your product....notthe product itself. TIP#8...MAKE EFFECTIVE USE OF THE 18 MOST POWERFUL WORDS INADVERTISING. * free, now, new, how to, save, guarantee, money, easy, simple,you, proven, love, results, discovery, fast, amazing, sex,profit. TIP#9...ALWAYS UP-SELL. * Offer extras when a customer requests information or places anorder. Always suggest related items. Point out the addedfeatures and benefits of a higher priced item and then show thecustomer specifically how these features will make his lifeeasier, safer, etc. TIP#10...SPREAD YOUR SPECIALS AROUND--CONSIDER THE TRAFFICPATTERN IN A RETAIL STORE. * Set up product displays so that you force your customer towalk the entire expanse of your store. Your "impulse" buys willincrease dramatically when you expose your customer to moreproducts by well planned placement of "sale items". TIP#11...CAPTURE YOUR CUSTOMERS NAME, ADDRESS, AND TELEPHONENUMBER. DEVELOP AN IN-HOUSE MAILING LIST FOR ON-GOING DIRECTMARKETING USE. * Your customer list represents your most valuable asset. Yourgreatest potential for sales and profits lies in the customerdatabase. To ignore this potential is pure folly. TIP#12...DON'T STOP AFTER THE SALE. * Create a planned program of continuous follow-up to yourcustomer list. * Use ride-alongs, invoice stuffers, new catalogs, new productbrochures, special sale flyers, preferred customer sales anddiscounts, customer appreciation events, more coupons. Keep yourcustomers coming back to YOU! © Copyright 2005 Thom Reece All Rights Reserved About the author:Thom Reece is the CEO of On-Line Marketing Group, a directresponse marketing agency with headquarters in Hawaii. He is thecreator of the Online Marketing Resource Center [http://www.e-comprofits.com ] . Thom can be reached by email at:thomATe-comprofits.com |
