Deals That Will Give You ROI
We come across coupons all the time, but what are the ones that intrigue us the most and make us actually buy a product? And more importantly, why do they work? In this blog, we’ll dive into the power of coupons and help you understand what coupons work, at what times, and why.
So, Why Coupons?
Coupons have been around for a long time, but that doesn’t mean that their power is something of the past. For 89% of consumers, price is the main factor impacting purchasing decisions, which is why they’re always looking to find a deal. Coupons give shop owners the ability to sway a price towards a desirable range that the customer’s more willing to pay, while giving them the satisfaction of finding a deal.
Since the satisfaction of finding a good coupon is so euphoric, customers will often change their buying habits based off of them. In 2020 alone, 92% of shoppers searched for coupons or offers before even looking to buy online, and 86% of millennials reported that they could’ve been persuaded to try a new brand if offered a discount. With that in mind, this gives pizza shop owners the perfect opportunity to gain new customers, even in highly saturated markets.
And, even though more than 31 billion digital coupons were redeemed worldwide in 2019, paper coupons still attract customers the same way – with 50% of consumers preferring to receive coupons in the mail over finding them digitally. Need more information on how to incorporate coupons in your next direct mail campaign? Check out our other blogs on what direct mail can do for your shop’s brand, here.
So, now that we’ve convinced you on the power of coupons, let’s take a look at a few different styles that have a real effect on your customers buying decisions.
First Time Offers
The first point of contact is critical when it comes to creating a quality, lasting relationship with a new customer. One way to increase the customer’s overall experience from the get-go is to create incentives for first timers. This type of coupon is great for new mover marketing campaigns due to its ability to motivate new movers to visit your shop for a discount on their first purchase, boost customer retention, and break through the noise in what may be an already saturated market. As a matter of fact, a whopping 57% of consumers said that they made a purchase from an unfamiliar shop with a coupon, leading to 91% them becoming repeat customers. The moral of the story – the more first time offers available, the more chances for new, loyal customers.
Customers are always looking to get more bang for their buck, making them very interested in deals that offer more quantity of a product based on bulk pricing. In a recent study, shops that offered discounts and coupons for bundled pricing saw sales increase over time as their customers became more familiar with these deals. With value and bundle offers, consumers will always feel they’re getting more than they paid for.
A popular example of value offers is the famous Buy One Get One tactic or “BOGO”, which works well for low-cost items within your shop or for clearing out older or unsold inventory. These BOGO offers can appear in numerous formats like “Buy one specialty slice, get the next one 25% off” but they can also be customized to specifically meet your customer’s needs. There doesn’t always need to be a major discount involved, just enough to create interest.
Customer Loyalty Offers & Coupons
Trying to find more ways to build customer retention through offers and coupons? Creating a loyalty program provides incentive, as customers can receive regular discounts depending on their purchases or their loyalty to your shop. These incentives often lead to new customer purchases that they wouldn’t have necessarily tried before and can also build a community for your business that pushes people to return regularly.
When implementing a rewards strategy, pick a system that best aligns with your overall business plan. One option is a points program, which gives customers discounts based off of points they accumulate through their purchases. Another is a community program, which allows customers to join a community network with exclusive discounts. This type of program does a great job at creating urgency for the customer and its exclusiveness, and if done right, can make it extremely successful. There’s also the tier program model, which is a program where customers receive different coupons (or points) depending on where they are within the program. All of these programs can be done successfully by knowing your customers and creating the program, its rewards, and its coupons based around their needs.
Looking for ways to incorporate the power of coupons into your next direct mail campaign? We’re direct mail experts, and we’re ready to help! Contact us today to start brainstorming.