Coupons have the effect of expanding or increasing your market area. We know that consumers will travel far to redeem a valuable coupon.
2. Coupons will entice new customers that have been shopping at your competitor. It's a proven fact that consumers will break routine shopping patterns to take advantage of a good coupon offer.
3. Coupons attract new residents when they are actively in the mark
et for products and services.
4. Coupons will re-activate old customers. Those customers that have been lured away by your competitor will start buying from you again when you give them a good reason to do so.
5. Coupon advertising provides the opportunity for additional profits through sale of related items. (Business owners often forget this.) When you offer a special "deal" on a coupon to invite a customer to do business with you, you have to remember that this same customer will probably end up buying additional items 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 not have had this opportunity had it not been for the coupon getting the customer through the door in the first place.
6. Coupons build store traffic which results in additional impulse purchases.
7. Coupons are measurable and accountable Don't overlook that couponing is the most measurable and accountable form of promotion. It's simply a matter of counting the number of coupons redeemed to judge the effectiveness of the offer. Wise use of this consumer feedback will guide you in creating future offers that improve your results. Understand that the media delivering the coupon has very little to do with the response. Publications simply deliver your offer to a specific audience. It's up to you to determine what offer produces the best response from that audience. You do this through methodically testing various offers. Savvy use of this "coupon testing" technique will give you the specific knowledge you require to greatly improve all of your advertising response, your sales, and your profits.
