Coupons are a great incentive for new customers. Everyone is a fan of saving money. However, there are better ways to offer discounts than others.
There is a careful balance that each business must achieve when offering discounts. On the one hand, it cannot be too scarce. Discounts and special offers attract new customers while also rewarding the loyalty of regulars. This can lead to a surge in sales and better reputation for a business. On the other hand, coupons will lose their value if they are constantly used. They also have the potential to cheapen your products, which could ultimately lose money. Too many discounts confuse employees and customers. No one wants to deal with the hassle of questionable expiration dates and unclear guidelines.
Keep on Message
The best method to approach discounts is to have a clear cut strategy. First, the terms need to be clear. Customers need to understand the offer from first glance. Keep the message clear and try to avoid too many conditions. Second, a timeline should be in place before any announcement. Is it an ongoing deal? Does the deal expire? For special offers, it is best to choose a shorter time span to get customers in the door faster.
Make it Clear
The bottom line is that discounts should not confuse people. Customers need to understand them so that they will want to use them. Employees need to understand them so they can implement them correctly. Lastly, discounts should have more than one purpose. When products are put on sale, it may be because the their sales are low. Discounts are a great way to get those things out of the store to make room for new inventory. For restaurants, they can be a way to promote new items or use ingredients that will soon be out of season. Offers can also be used to target specific groups of people. That means people unfamiliar with your business, or who have not yet connected to your brand. Discounts will give them a reason to come in and hopefully return.
Written by: Natalie Earhart