Getting Creative With Coupons

Recent studies show that coupon redemption rates jumped 10% in the fourth quarter of 2008, with 94% of consumers now reporting they actively use coupons. It certainly appears to be the perfect time to include coupons in your advertising mix.

Coupons are essentially versatile print ads. Coupons can promote the grand opening of a new location; they can reward your current customers and increase loyalty; they can help you to entice new business away from your competitors. Getting creative with coupons is a valuable marketing tool to use in this economy.

Your coupons can offer something free with an additional purchase, for example, or give a percentage discount on purchases to encourage your customers to spend. When your customers redeem these types of coupons, it indicates you are gaining their loyalty. Customers’ behavior is positively impacted when you reward them; ultimately, they will spend more and attach a “value” to your brand.

Some businesses focus on increasing their clientele by encouraging referrals. As a customer, you receive a free service or discount when you refer a friend to purchase one of their services. This technique works for online coupons as well. As long as there is a real value associated with the offer, you can easily grow your email marketing database using referral coupons.

Another way to get creative with coupon advertising is to team up with a non-competing local or national company whose business complements your products or services. Many restaurants do this by utilizing famous name-brand products that contribute a percentage of the total advertising cost.

Choosing the right direct-mail publication for your coupon advertising is also important. Consider these points when deciding which resource to
• Make sure the publication’s readership rate is high enough to generate a good ROI
• Make sure it is in color. Research has shown that full-color advertising can actually increase redemption rates by 30% to 60%
• Make sure the publication offers high-quality photography. It is very important to have a visual appeal to catch the reader’s attention.
• Make sure your coupons will not be placed “back to back” with coupons of advertisers on the reverse side of the page. Some direct-mail formats or newspapers have coupon pages on both sides; any unfortunate “back-ups” may reduce a coupon’s redemption rate.

As a reputable direct-mail publication, Clipper Magazine also offers online coupons for their advertisers at couponclipper.com. This increases the likelihood of a coupon being redeemed by the consumer. Online coupons are very practical, save time and with a click, readers can print what they want when they want it.

As we keep repeating on all our blog posts, be sure to ask for ad/coupon samples and their actual results, whether from case studies or testimonials, before you invest in advertising.

The Point: Coupon advertising works; you just have to get creative with your offers and ads to increase your ROI.