Tuesday, November 20, 2007
Should your product be one of them?
Have you thought about offering coupons but don't know how? Or maybe you're wondering if a coupon is the right marketing approach to get your sales moving. I've had similar thoughts and questions and have come to the following conclusions.
1. Offering a coupon isn't necessarily a bad thing. After doing a variety of testing I found that a $ off coupon generated more sales than a % off coupon.
2. Coupon sites provide a lot of exposure for your particular offer. However, because you most likely have to pay an affiliate fee to the coupon site, orders are less profitable. To make the most of your coupon strategy, offer $ savings above a certain price point. This encourages consumers to upgrade to a higher priced item in order to take advantage of a discount.
3. Keep it manageable. Don't go coupon crazy! I often see sites that have a coupon for just about every product they offer. Only coupon those products you have excess inventory of or that have the greatest profit margin (so you can afford to discount).
4. Make the use of coupons part of an overall marketing strategy which includes other non-monetary promotions. If you start discounting your prices all the time, consumers will only shop when they can get a coupon!
Coupons serve a purpose, and when used carefully can boost sales in a profitable way. Learn more about offering coupons and experiment. As always, monitor results closely and see if the additional sales warrant the additional expense.