How to Effectively Use Coupons for Your Business

Reward customers with regular coupons to build loyalty.

Everyone likes a discount, so one way to attract customers is by offering coupons. Coupons advertise your business and help establish customer relationships. You can also use coupons to stimulate interest in new or slow-selling products. To get the best results from issuing coupons, you should plan each promotion carefully. Think about your costs and only offer discounts you can afford. You want to make customers happy with discounts but not at a loss to your business. Treat new customers well, so that they'll want to come back again and refer your business to their friends.

Instructions

1. Ask customers to join your business mailing list. Offer regular coupons and discount codes to customers through your business newsletter. Rotate coupon discounts to promote different items in your store. For example, you can offer coupons that take a percentage off seasonal products, or special holiday gifts. If you have a brick and mortar business but also sell some of your products online, you can entice customers who can't make it to your store with special coupons for online orders.

2. Offer preferred-customer coupons to reward shoppers who spend over a certain amount in your store. Preferred-customer coupons should offer a special discount as a reward for your best customers and should give them continued incentive to stay with your business. For example, a regular coupon can offer 5 percent or 15 percent off. Special coupons can offer discounts of 30 percent or more on select products you don't mark down on a regular basis.

3. Set expiration dates for coupons. Coupon periods can be as long as a few weeks or as short as a few hours on a specific day. Encourage customers to follow your business' social media accounts to watch for timed coupons offering deeper discounts than your regular coupons. You can also have contests and offer special coupons as prizes to winners.

4. Write coupons clearly so that customers know how to use them. For example, coupons applied to already discounted merchandise might make the price too low. Avoid misleading language that can lead customers to assume a coupon discount on one product applies to an entire product line.

5. Try group-buying coupon sites to see if they benefit your business. You can get information about how to sign your business up to participate coupon promotion by calling or emailing a sales contact on the group-buying website. Track sales results and continue to participate in group buyer promotions if they help increase your monthly revenue.

Tips & Warnings

• Don't argue with customers about coupons. If there's a misunderstanding about a coupon, it's better to let the customer be right. Negotiate compromises on deals to avoid negative customer feedback.

References

• SBA.gov: When and How to Use Coupons to Promote Your Business
• Entrepreneur Magazine; Go Guerrilla: Speaking, Coupons and Contests; Jay Conrad Levinson and Al Lautenslager; September 2009
• Inc. Magazine; Online Coupon Sites Thriving; Kelly Faircloth; May 1, 2009
• Inc. Magazine; 10 Pros and Cons for Using Groupon; Carolyn M. Brown; April 2011