Why Top Retail Marketers Use Coupons
If you're like me you might have wondered why there are so many coupons distributed in the mail, by email, in the newspapers and so on. It might seem that marketers are going to a huge amount of trouble to give the consumer very little off often 10c or so, on their products. And coupons seem to apply to every kind of product from yogurt to cutlery to socks. Why on earth do retailers do this?
Well, I spoke to a leading coupon guru who told me some interesting things about why top marketers believe in coupons and I'm going to tell you some of the reasons they use them and convey some tips on how to use them effectively as part of your marketing campaign. Firstly, lets define a coupon. Its a scrap of paper or a code you get electronically that you can exchange for a discount on the product or service concerned in order to save money.
At first glance it might seem that companies use coupons to increase their revenue by encouraging people to buy their products. This is in fact a very small part of what coupon marketing is about. The main benefit of coupons is that it allows marketers to track where in world, the region, the country ones products are being sold. It can identify the stores they are being bought. Lets say one sells more butter in South Carolina than anywhere else and none in New Mexico and this you established by tracking your coupons. You can then use this information to sell more butter and to find out why practically no one in New Mexico is buying your butter.
From the consumer point of view a coupon works like this. A person looks through the Sunday paper and finds a coupon that says you can save 0.20c on you favorite ketchup. So the next time you go shopping you take the coupon along and buy the sauce at a discount. Two things have happened the consumer has had the satisfaction of saving money, although the amount it small. More importantly, the consumer has bought that brand of ketchup and no other. Because he had a coupon for that particular brand he wouldn't consider buying another brand. Also the marketer is able to track the sale and draw valuable marketing data from the transaction. Please note that the money involved is really not the point. And yet the consumer perceives himself to have gained from the transaction and the marketer has garnered valuable information.
Marketers also use coupons to increase the client base. However, in this case the saving has to be considerable, not just a couple of cents. For instance, lets say you service cars at peoples homes. You normally charge 250 dollars for a basic service, but you offer a coupon stating you will service two cars for the price of one. That sounds like a massive decrease but you are gathering valuable information from the transaction. The tracking element is present here but more important the deal is getting you in front of people that may refer you to other prospective customers. So a coupon can have a viral marketing effect. Also, the marketer now has the customers contact information. Lets say the industry norm to service cars is every six months. Obviously you can do a six monthly mailing reminding customers to service their cars. This is a good way to ensure year round business with repeat customers.
In summary, coupons are a good way to help increase your customer base and stimulate revenue. There are also a wealth of creative ways you can use coupons to increase your business. Once you have discovered how to use them remember to always include coupons in your marketing strategy.
James Copper is a writer for http://www.marketinglinx.com
All About Acne - Causes + Treatments + Recommended Best Products
Make Your Career in Fashion through Fashion Design School
Auto Insurance Online for Convenience and Savings
Discover Streaming Video and what it means for you
How to protect and defend against Identitity Theft hassle and cost
The basics of protecting your PC from Adware, Spyware & Malware
Cut relocation cost and stress with Upsticks Relocation Wizard
Boarding School Resources Guide
Online Rebate Shopping sites, Cash back Rebate & Coupons Shopping
Top Acne Treatments - Survey report reveals best Acne products
DVD reviews and resources - movies, TV, music and sport to please all tastes
Careers and Recruitment Guide
Alzheimers Disease - Symptoms, Stages and Treatment
Get tax accountant advice and help with deduction questions
A Career in Physiotherapy - Background and Specialist Physio Applications
Introduction to Domain Name Investment - Expired Domain Recycling & New Name Registration
Teen Weight Loss: lasting solutions to teen obesity
Tell the world with Free Classified Ads
Bargain domain registrations with free privacy. Hosting advice.
Related Articles:
Ditch Coupons Before Customers Ditch You
Everyone wants to feel like they're getting a good deal. Merchants often attempt to capitalize on this desire through coupon offers, rebates, and "special discounts.
Cash Back Credit Cards: A Few Things To Consider
Cash back credit cards have become extremely popular over the past several years as consumers are able to receive a percentage back of each purchase in the form of a cash rebate or incentive. Cardholders can get cash back on every purchase they make from everyday purchases at the grocery store to recurring monthly bills such as their cellular phone bills. If you are considering getting a cash back reward credit card, then here are a few things to consider before you apply. Knowing what to look for and having some knowledge about what type of offers are out there will help ensure that you get the credit card that is right for you.
Baby Coupons
Every year we spend thousands of dollars on baby food, baby formula, diapers, baby utensils baby cloths, medicines, toys and other baby products. It has become a costly affaire for baby boomers to bring-up babies. Coupons can help such people in controlling these expenditures to some extent. People who choose particular brands only for their baby can also benefit as major manufacturers and retailers of baby products offer significant offers on many of their baby products through coupons.
Ah The Joys Of Online Coupons...
I love online coupons and saving money off of them. If there is a bargain to be found, I am all over it. My husband calls me the coupon queen-kong. I get my coupon clipping tendencies from my mother, it's a genetic trait. My husband and my father on the other hand do not enjoy using them as much. If you handed them a discount coupon, they will be overly embarrassed to use it. Who cares if they can get a free meal or a huge discount, they suddenly lose the coupon before it needs to be presented. I personally present and take advantage of as many coupons as I can each and every opportunity I have.
An Introduction To Internet Coupons
Almost all the bigger brands are offering Internet coupons to their consumers. They are using these Internet coupons as a powerful way to promote their sales, especially when they launch new products or when there is a huge competition in the market for the similar types of products. Even though companies are not seeing these coupons as an alternative for the traditional ones, they are certainly looking at online coupons as a good complementary option to promote their sales.
Coupon Book
In today?s busy world most of the couples do not find much time for each other. Everyone has a hectic life. There is the individual?s career and other activities to engage into. Couples these days hardly spend quality time together. They come home tired and doze off to sleep. By the end of the day you are so tired that you do not speak much and just prefer to get a sound sleep. Such busy life affects a relationship immensely. You do not get time to talk to each other and this somewhere creates a gap between you and your partner. Your happy and interesting relationship fades to an unhappy and unenthusiastic relationship. A kind of hollowness is formed in your marriage. That love and charm is lost that you experienced earlier.
Online Florist Directory, LocalFlowerShop.com, Reports Record Levels of Online Traffic and Phone Inquiries as the Holiday Online Shopping Frenzy Begin
The floral industry's fastest growing directory becomes deluged by record numbers of consumers clamoring for an opportunity to order flowers directly from a local florist.
Online Coupons, Anyone Wants?
Some people do not stop and think about discounts that might be available to them when they order flowers for someone that is in the hospital. If they had, they probably would have been able to send a larger arrangement of roses than they would typically be able to afford on their limited budgets.
Chinas Online Shopping May Be Booming In The Next Few Years
Data from China Internet Network Information Center (CNNIC) shows that till June 2004 Chinese online user has reached 87 million, of which, 7.3% has experience of online shopping.
Online shopping: The easiest way of buying and selling
Online shopping is the process consumers go through to purchase products or services over the internet. It is the perfect meeting point through Internet between buyers and sellers and an electronic application used for B2B (Business to business) and B2C (Business to consumers).