Recently I was asked if marketing by way of a discount coupon that form part of a flyer or advertisement is an effective method to get new business.
The answer might surprise you as the research results vary. Often it does encourage a customer to try something for the first time. The thinking is if it is good, they will buy some more or come back again.
Food retailers often run a special on certain products and the loss-leader principle is well known. Fact is that some people only buy those specials (yes, they go from store to store redeeming the coupons) and others could not be bothered.
Small business owners sometimes do not like to redeem such coupons and the administration needed to run such a project if often ignored. In addition in many cases it is not a true discount and there are “catches” involved.
What we have discovered though is that coupon redeeming is a fantastic indicator if the marketing campaign is working and if you are looking for new customers, make the experience special enough that they will become customers.