Although coupons may seem old-fashioned, when used correctly they can really help your small business grow.

Here are 5 reasons why you should be offering discounts to your customers:

1. Entice New Customers
Incentives are a great way to encourage people to try new things. Offering coupons for your product or service is a great way to drive new customers to your business. People can be resistant to trying a new company but a coupon might be the incentive they need to try your service or product.

2. Build Loyal Customers
Offering coupons customers love will keep them coming back. Customers love coupons (87% of all shoppers use coupons), and will stay with a company that offers them savings. Customers will trust that you are willing to give them the best prices.

3. Reward Customers
Once you have regular customers you can reward them with special offers. Let them know that you value their loyalty. Give them exclusive coupons that are only for your loyal customers. Make sure these discounts are genuinely better than your regular coupons and are only for customers who use your product or service on a consistent basis.

4. Easily track your ROI
Often it can be hard to track where your marketing dollars go, but coupons are measurable. With coupons you can easily see which customers use your coupons. This allows you to track how effective your coupons are and if they are worth the investment.

5. Keep up with the Competition
With all of the small businesses in your area it can be hard to stand out from the competition. Coupons are a great way to offer an incentive that your competitors may not have. Be sure to offer features such as price matches so customers have no excuses to choose your competition.

Now that you know why you should be offering discounts to your customers, you can plan a coupon strategy that will help drive sales and profits to your business.

For more insights on marketing strategy that actually works for small business, subscribe to the FreshLime Newsletter here. Connect with Jay Bean, Founder of FreshLime and Small Business Marketing Expert on LinkedIn and Twitter.