Who doesn’t love a discount? Offering coupons nudges your customers to make the purchases they’ve been thinking about. Special offers may generate more sales, but you still need to make a profit. Set certain requirements to make the deal beneficial for you and your customers.
Limit Coupon Use
Have you ever read the fine print on coupons from big retailers? They often feature a long list of products or brands that don’t qualify for the discount. Use this trick to your advantage by selecting the qualifying items carefully. Encouraging customers to use the coupon on items that have the highest profit margins means you won’t lose as much money. Limiting the coupon to a single use keeps a customer from coming back multiple times to save on multiple purchases.
Get Something in Return
You don’t make your full profit with the coupon, but you can get some value from the transaction. An easy option is collecting email addresses in exchange for a coupon to build your email marketing list. Future marketing campaigns can go directly to your customers and may result in repeat sales. Set up an opt-in on your website, so visitors can easily give you their information. After submitting, they get the coupon.
Encourage Bigger Purchases
The coupon gets a shopper in the door. Now it’s your job to keep the customer there and increase the sale. In a brick-and-mortar shop, positioning items that people want rather than need in prominent spots helps encourage extra purchases. Set up a display right inside the door, next to sale items, or near the registers. If you have an online store, add a suggested items feature. This feature happens in a few different ways. Some online retailers include similar or related items on product pages. Others use popups with items the user might like based on previous searches and purchases. Another option is suggesting extra items or products that complement something already in the shopping cart when the customer checks out online.
Negotiate Coupon Terms
Groupon and similar programs let you reach a broader audience, but they can also cut into your profits significantly. The programs often take a large portion of the coupon amount for their fees. When you’re already taking a cut in your profits, that fee can make the deal a loss. You can make the situation better for you by negotiation the fee rate with Groupon, so you keep more of the coupon cost. Set a limit on how many coupons each user can purchase. Upselling buyers with additional products or services brings in more money on the transaction.
Encourage Repeat Business
If you use Groupon to find new customers, you may find they aren’t as likely to return after using the deal. One way to increase the chances of another booking is to offer additional incentives. You might throw in an extra spa treatment if the customer books another appointment before leaving. You can also offer a discount on a future service when booked right away. Getting the customer to book directly through you eliminates the fee from the coupon service. You keep more money even if you offer a discount.
Another strategy to turn new customers into repeat customers is by collecting contact information. When customers use coupons, collect names and email addresses. You can use that information for future email marketing campaigns.
When used strategically, coupons can help you increase traffic without taking a financial loss. Use coupons sparingly with follow-up techniques to keep new customers coming back.