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 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 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 All Rights Reserve