Using Coupons for Everyone’s Advantage
By James Pruitt, Senior Staff Writer
Strategic use of discounts and coupons provides crucial growth opportunities for small Veteran Owned Businesses. Opportunities for promotional campaigns may include the following: First, in some cases product needs to move fast. Second, new companies can use these deals to turn a trickle of curious browsers into a crowd of loyal buyers. Third, deals with customers may increase brand loyalty, assuming a quality product.
In some cases, excessive use of discounts and coupons may disadvantage a small business. First, “extreme couponers” are in fact a thing, and savvy customers may find clever strategies to turn promotions disproportionately in their favor. Many customers freely take advantage of such campaigns, and rightly so. Profit margins may decline. Second, counterfeiting of coupons is nothing new. Just in September 2021, the feds broke up a counterfeit coupon operation in Virginia that cost retailers upwards of $31 million. A Virginia couple was sentenced in this $31 million fake coupon scheme (usatoday.com)
Wise business owners understand supply and demand. Perhaps a new company does need new customers. In previous blog posts, we discussed the use of free samples for new products.
(1) Loyalty Programs
Companies often grant regular customers special deals and discounts. Some companies employ a point system. Specialized grocery store cards sometimes offer another system for rewarding loyal customers. Similar programs may benefit smaller businesses. Perhaps a paper card can provide checkmarks for each visit until the customer receives a special deal. Whatever the system, encouraging loyalty should reap benefits for both the business and the clientele.
(2) Newsletter Signup Offers
We’ve all seen company newsletters outside local establishments. True enthusiasts can sign up for online updates. The resulting email list can provide a database of devoted customers who might appreciate specially channeled deals. This strategy could also help build a devoted following that might strengthen your online presence, especially on social media.
(3) Discounts for In-Store Purchases
Discount codes for on-site purchases can bring customers on-site and bring the kind of face-to-face interaction only brick-and-mortar establishments can provide. The goodwill from these face-to-face interactions can be priceless.
(4) Influencer Deals
“Tell them John or Tanya sent you.” Relationships with third parties can multiply your fan base. When John or Tanya’s Instagram advertises a special deal, you, the business owner, get the benefit of not only your own client base but those of the two influencers as well.
Influencers can share special referral coupons on their blogs or other sites, multiplying your client base in the process.
(5) Exit intent discounts
“I’m just browsing.” Providing coupons to consumers just as they leave the website or physical store can expand that initial curiosity into an ongoing relationship. Good marketers know how to casually make their mark on curious looky-loos.
(6) Weekly or Monthly Deals
Periodic deals can keep new customers engaged and waiting for their next fix. These kinds of arrangements can make customers feel “in-the-know,” and even bring in friends and family as their engagement brings your company deeper into their lives.
Overall, the best marketers know how to use special deals to wedge themselves into the memories of new shoppers. Coupons and discounts play a special role in moving the customer through the sales funnel.
Some customers may see these deals as games to maximize their own rewards. For others, discounts may imbue your brand name into their memory, and lure them into a second visit when the right time comes. In any case, discounts should be a two-way street. Their strategic use can turn a trickle of casual visitors into a crowd of devoted brand followers.
VAMBOA, the Veterans and Military Business Owners Association hope that this article has not only been valuable but provided some unique perspective. We work hard to bring you important, positive, helpful, and timely information and are the “go-to” online venue for Veteran and Military Business Owners. VAMBOA is a non-profit trade association. We do not charge members any dues or fees and members can also use our seal on their collateral and website. If you are not yet a member, you can register here: https://vamboa.org/member-registration/
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