Today’s consumer wants to maximize the value of a dollar. Regardless of age, they strongly feel that coupons and discounts are very important when making decisions about their purchases. The key is to get these special offers to the right people at the right time so you can increase new and repeat business.
Your coupons and discounts can be a part of your overall brand strategy. But first, you need to consider if the offers fit your pricing strategies, product positioning, and brand identity. For example, if you sell higher-end products, you may want to consider offering discounts on accessories. This still entices new customers to commit to purchasing while maintaining premium brand pricing.
Smart Strategies for Results
New and repeat customers should not be the only focus of your offers. You can also use them to win back lost customers or spark a word-of-mouth campaign. Whichever one you choose, you’ll find a strategy below that fits your needs.
New Customers
Acquiring new customers is an expensive endeavor. It costs nearly five times more to gain a new customer versus a repeat one. The following strategies focus on overcoming the challenge every retailer faces when attracting new customers.
Keywords and Digital Coupons
A great way to get people interested in your store is to offer an incentive. But, you have to make it easy for them or else they won’t want it. A keyword sent to a short code triggers an automated delivery of a digital coupon or discount on their first purchase. This will entice them to commit. Your keyword and short code can be displayed in-store, on your website, social media, and other advertising activities. Best of all, you grow your customer list to send future offers.
Referrals
Word-of-Mouth advertising is the most cost-effective method to reach new customers. People actively look for recommendations from their family and friends. So, rewarding customers to spread the word about your company is easy to do when you have a referral program in place. This will offer a token of appreciation to loyal customers while driving new business.
Repeat Customers
With each repeat purchase a customer makes, they are more likely to keep buying from you. Bringing them back, just once, means that you’re more likely to have a loyal customer. To do this, your strategy should focus on maintaining a long-term relationship.
Inspire Loyalty
People love the feeling of being recognized for coming back and buying again. Every little bit can go a long way. This is what makes rewards programs so successful. Customers can collect points toward a goal that allows them to receive a discount or free item. Creating tiers in your loyalty program is even more effective. Loyalty programs also offer VIP experiences, such as text messages on special promotions and email updates on the newest products.
Lost Customers
They haven’t returned, and you probably don’t know why. Regardless, they know who you are, so you can encourage them to come back with a coupon.
Email Subscribers
Some of the customers on your email list may need an extra push or incentive. Did you know that email campaigns that offer a coupon are more effective? They have higher open and click-through rates. More importantly, people are more willing to redeem them. This is an effective way to get people back to your store, and when they do, you can find out how to keep them coming back.
Inspire Customers to Become Loyal
There are a variety of coupons and discounts that you can use. These promotional offers attract new customers and keep them loyal. The goal is to encourage repeat shoppers because they are the most profitable for your business. This should alleviate any worries that you may have about these types of promotions hurting your margins.