The Awesome, Lesser-Known Benefits of Offering Discounts
There are many retail pundits who say you shouldn't market your business with discounts. They say you'll damage profitability and bring in a bunch of customers that won't come back (unless you bribe them with yet another deep offer).
What a load of hooey.
When used smartly and strategically, deals and coupons may be the best marketing tool a business has.
This is what we know deals can do:
- Introduce new customers to your business
- Generate interest in new products or services
- Encourage repeat visits
- Increase business during slow periods
- Create short-term cashflow in a pinch
We could keep going for a while, but you're welcome to check out our collection of coupon statistics for more info.
But there are more benefits from a discount campaign than just dollars and cents.
With the right partner and focus, a business can get so much more out of coupons than just another customer walking through the door.
What Else Can a Deal Do For You?
In fact, you should get more from a discount than just another customer. A great deal should build your brand beyond what happens in your walls.
Here are a few more benefits a business can get from running a discount campaign that most people don't think about:
- Brand Exposure
Some studies have shown that people need 30+ brand exposures before making a purchase. Whether they use your deal or not, discount are a cheap (sometimes free) way to introduce your brand to strangers or re-expose it to those already familiar.
- Brand Association
Deals aren't just for newspapers and mailers. In fact, the best marketing comes from partnering with rewards and incentive companies. For example, Access merchants are partnered with international credit cards, worldwide financial institutions, massive employers, and associations with thousands of members, among many others. But we also connect merchants to local nonprofits, teacher associations, Farm Bureaus, and other groups that strengthen communities.
- Community Involvement
By being selective about with whom you'll offer a discount, you can help specific people and businesses in your community. You can give back to local teachers by offering them a discount. Or you can market an offer with a portion of each sale going to a charity. Regardless of "how," strategic discounting enable you to build your own business while also helping out people in your community.
- Build Your Database
Studies (like this one and this one) have found that people who purchase with a deal are more open to giving you their contact information. A database of customers is one of the most valuable assets a business can have - and discounts make people far more likely to join yours.
- Connect with Specific Audiences
Don't just assume that your offer has to go to a wide audience, or that you get one deal to share to everyone. The best offers are limited and targeted. Maybe it's people in a specific geographic area or a certain profession. Discounts enable you to get in with these specific groups at a minimal cost, and a reliable discount marketing partner will make sure that the offer is protected.
Build That Deal
Here's the thing.
Dollars are scarce. Competition for consumers is fierce.
You can toss a deep deal out to the public and you'll draw a pack of wolves. They'll take what you offer then scavenge their way to the next deal.
If you just need a short term influx of customers and cash, then go for it.
But if your brand matters and building long-term relationships is important, then you'll need to be strategic with your offer.
Know your goal, work with a partner who knows how to manage discount marketing, and craft a great offer together.
You'll reach your financial and customer goals, but you'll also get a lot of incremental benefits as well.
More than you probably expected.
Topics: coupon marketing
Written by: Brandon Carter