How to Put the Profit Producing Power of Couponing to Work for You

Coupons have proven themselves to be highly effective sales tools for every conceivable size and type of business.

Because coupons "pull in the business" they have gained remarkable acceptance and popularity among astute marketing managers. A simple explanation for their acceptance by advertisers is their overwhelming acceptance and use by the consuming public. In fact, Advertising Age (the Bible of the advertising industry) reports that 87% of all shoppers use coupons.

Another independent marketing research firm, the A.C. Nielson Co., reveals that 95% of all shoppers like coupons. And 60% actively look for coupons.

A recent article in the Wall Street Journal entitled, "In a Pinch, Snip.", states that coupon use rises, as the economy in any given area slides. 54% of shoppers surveyed said they had already stepped up use of coupons, and even more are expected to do so.

It's very easy to see why coupon advertising is sweeping the country. Regular use of good couponing strategy will provide a steady stream of new customers and high quality sales leads.

Savvy marketers cite these reasons for heavy reliance on couponing:

A. Coupons have the effect of expanding or increasing your market area. We know that consumers will travel far to redeem a valuable coupon.

B. 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.

C. Coupons attract new residents when they are actively in the market for products and services.

D. 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.

E. 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.

F. Coupons build store traffic which results in additional impulse purchases.

G. 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.

How do you go about creating a coupon promotion that will work for YOU? Here's what I like to call...

THOM'S TWELVE TIPS FOR EFFECTIVE COUPONING:

TIP#1...MAKE A SOLID OFFER!

* OFFER DISCOUNTS..."$50.00 OFF!", "60% OFF!", (percentage discounts are only good when they are high percentages and the value of the product or service is well known.)Dollars Off discounts work best.

* OFFER BONUSES..."Buy One/Get One Free!", or "2 Free with Each Case Ordered!", "Free Batteries When You Buy One Super Flashlight", or "Free Drop Cloth with Each Gallon of Super Paint", etc.

* OFFER PREMIUMS...Offer premiums for a presentation, for a trial order, for a subscription, for a demonstration, for a new customer referral, for an order amounting to $xxx or larger", etc.

* OFFER FREE INFORMATION..."FREE booklet", "FREE brochure", "FREE estimate", "FREE details", "FREE samples", "FREE trial", "FREE consultation", "FREE quote", etc.

TIP#2....USE BOLD, COMMANDING AND SPECIFIC HEADLINES!

* "Save $50.00 on Any Portable TV....This Month Only!"
* "FREE BROCHURE...'Beauty Secrets for Career Woman'!"
* "Free Catalog Saves YOU 70% on Office Supplies!"
* "Rent Two NEW RELEASE Video Movies--Get One FREE!"
* "Buy One Dinner Entree--Get One FREE!"
* "Buy Five Cases of Copier Paper--Get the Sixth Case Absolutely Free!"

TIP#3...USE LINE ILLUSTRATIONS OR PHOTOGRAPHS.

* Illustrations work best when you show products in-use.
* Illustrations enhance credibility, aid understanding, and create desire.

TIP#4...USE YOUR LOGO IN YOUR COUPON.

* Use of logo: builds company identity and awareness (branding) in the marketplace, enhances your image, lends credibility to your offer, and improves response.

TIP #5....MAKE EFFECTIVE USE OF WHITE SPACE.

* Don't clutter. Don't cram.

TIP#5...SELL THE BENEFITS.

* Save time, save money, increase profits, protect your family, improve your standard of living, be happier, improve your health, increase your income, increase your comfort, more convenient.

TIP#7....APPEAL TO THE SELF-INTEREST OF YOUR CUSTOMER.

* Your customer is only interested in what you can do for him or her. Your customer will only buy the benefits-of-use of your product or service. Let me say that again...your customer is only interested in the benefits of use of your product....not the product itself.

TIP#8...MAKE EFFECTIVE USE OF THE 18 MOST POWERFUL WORDS IN ADVERTISING.

* free, now, new, how to, save, guarantee, money, easy, simple, you, proven, love, results, discovery, fast, amazing, sex, profit.

TIP#9...ALWAYS UP-SELL.

* Offer extras when a customer requests information or places an order. Always suggest related items. Point out the added features and benefits of a higher priced item and then show the customer specifically how these features will make his life easier, safer, etc.

TIP#10...SPREAD YOUR SPECIALS AROUND--CONSIDER THE TRAFFIC PATTERN IN A RETAIL STORE.

* Set up product displays so that you force your customer to walk the entire expanse of your store. Your "impulse" buys will increase dramatically when you expose your customer to more products by well planned placement of "sale items".

TIP#11...CAPTURE YOUR CUSTOMERS NAME, ADDRESS, AND TELEPHONE NUMBER. DEVELOP AN IN-HOUSE MAILING LIST FOR ON-GOING DIRECT MARKETING USE.

* Your customer list represents your most valuable asset. Your greatest potential for sales and profits lies in the customer database. To ignore this potential is pure folly.

TIP#12...DON'T STOP AFTER THE SALE.

* Create a planned program of continuous follow-up to your customer list.

* Use ride-alongs, invoice stuffers, new catalogs, new product brochures, special sale flyers, preferred customer sales and discounts, customer appreciation events, more coupons. Keep your customers coming back to YOU!

© Copyright 2005 Thom Reece

Thom Reece is the author of "Couponing Secrets Of The Pros" [http://www.e-comprofits.com/coupons.html] and publisher of "Thom Reece's Web Marketing Strategies & Techniques Newsletter". You may subscribe free at: http://www.WMSTDirect.com, mailto:thom@e-comprofits.com

---

Your Ideal Client

A lot of small businesses make the mistake of thinking... Read More

Direct Mail Response Rate Boosters (12 tips and ideas)

1. Mail to a different list Your list is the... Read More

Identify The Ideal Target Audience With These 5 Tips

Narrowing your focus to one primary group of people is... Read More

Help! What Happened?

Let's be honest, when you're writing sales material for a... Read More

Shopping Comes Back To The Community

THE GREAT BRITISH TRADITION OF STREET MARKETS IS UPHELD AT... Read More

Smart Ways To Rocket Launch Your Profits

If you really want to pull more profits from your... Read More

Ten Effective Ways to Capture Market

1.Evaluation of Existing Products / Therapies2.Assessment of New Products3.Market assessment... Read More

Do I Need an RSS Feed?

RSS has been around for more than 10 years but... Read More

Marketing Strategy - Spell Out Your Unique Value

I attended a "Sales Focus" seminar a few years back... Read More

How to Write Irresistible Promotional Pieces that Attract More and Better Clients

Whether you're creating a sales letter, a brochure, a newsletter,... Read More

Sell Big Ticket Items Now! - 1 Simple Step To Keep Your Fears From Holding YOU Back

First, some background on today's topic. I've had a terrible... Read More

Youre Halfway There!...Or Not Part 2

Now that you have had a chance to create a... Read More

Forward Thinkers Stay Ahead of the Curve

What is it like from a marketing perspective to be... Read More

The Truth About The Fallacy Of 7

Ted Nicholas is a marketer with a proven track record.... Read More

The Apprentice: 5 Lessons in Marketing

Donald Trump's hit reality show, The Apprentice is a godsend... Read More

Hermey Wants To Be A Dentist

December marked the 40th anniversary of the original broadcast of... Read More

The Biggest Needle In The Haystack

Hello everyone! Have you ever been curious about something, and... Read More

Business to Business Direct Mail Offers that Say Free

In direct mail, the offer is the incentive or reward... Read More

Survival Strategies

1. Do the moneymaking things first.For an entrepreneur, generating income... Read More

Terrific Titles, Happenin Headlines

You've probably heard the slogan, "You never get a second... Read More

Successful Marketing Through Seminars

One of the best ways for potential clients to find... Read More

Color Part 1: Accuracy

Color is one of the most difficult parts of a... Read More

The Art Of Writing Classified Ads

The writing of good classified ads truly is an art... Read More

Starting Small Business Promotional Campaigns

So you're starting a small business. You figured out what... Read More

Three Simple Keys Will Make Your Customers Stick

Do you spend a lot of time and energy courting... Read More

Your Marketing ? From The Couch To The Cash Register

When you put time or money into any marketing plan,... Read More

Be Prepared for Marketing

For most businesses, making a sale is all important. However,... Read More

Guide to a Profitable Marketing Mix

You may have heard the term Marketing Mix used in... Read More

Attract Your Dream Customer

Have you clearly defined your target audience? These are the... Read More

The Power of a Survey

How many times have you been asked to participate in... Read More

Deceptive Marketing and Procrastination

Procrastination is every marketers worst nightmare.This applies on three fronts.Firstly... Read More

Todays Definition of Marketing. Has It Changed?

With the continued proliferation of the Internet, the meaning of... Read More

Everything Youve Ever Learned About Marketing Is Wrong

Everything you've ever learned about marketing and advertising is WRONG.... Read More