As a small business owner, it can be difficult to determine when and how to offer discounts to your customers. It can be hard to determine what type of deals to offer, and how often should you send a coupon. You may be worried your offers will cost you money.
Follow these tips to maximize your return on investment with your coupons.
Offer deals during slow times – Schedule your deals to boost your sales during off-peak times. You don’t need to offer deals when you are too busy to handle extra work. If your business is seasonal, offer discounts during your slow season. For example, a landscaper could offer a coupon during the winter when landscaping work is generally slower.
Offer deals for new services – Coupons are a great way to introduce new services to customers. It encourages them to try a service or product they haven’t tried for a reduced price. A customer is more likely to try a new service or product for a reduced price.
Develop a schedule for your offers – Find out the best strategy for sending coupons. Sending coupons too frequently can encourage customers to only use your service if they have a discount. Set up a schedule that attracts loyal customers without only attracting price driven (cheap) customers who only wait for deals.
Determine which type of coupon works best for your business – There are several different types of coupon offers. The most popular is percentage based coupons, such as 20% off a service. Dollar-based coupons, such as $20 off, are very successful because people feel like they are wasting money if they don’t use it. Offering a free gift or service with a purchase is also very effective.
Don’t worry about damaging your brand because you are offering discounts. According to Advertising Age, 87% of all shoppers use coupons. Customers like coupons, so it is important to offer them strategically in ways that increase your profitability. By determining the best strategy for offering coupons into your marketing plan you are sure to increase your sales.