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Creating Coupon Promotions

How Retailers Market with Coupons


Creating Coupon Promotions

According to the Promotion Marketing Association (PMA) Educational Foundation, Inc., consumers consumers saved $2 billion in the first six months of 2011."Despite marketers' efforts to reduce redemption liability, coupon redemption volume saw a marked increase as the first half progressed," said Charlie Brown, NCH Vice President of Marketing.

Reasons to Use Coupons

As coupons continue to be an inexpensive form of marketing, nearly half of all retailers reported offering consumers some form of bonus coupon program. This means your competitors are probably utilizing coupons in their marketing plan and maybe should you too. Other reasons to use coupons include:

  • To Increase Number of New Customers
  • To Increase Sales of a Specific Product
  • To Increase Branding & Awareness
  • To Reward Current Customers
  • To Entice Return of Former Customers
  • To Create An Opportunity to Up-sell a More Profitable Product
  • Highly Measurable Form of Marketing

How to Use Coupons in Promotions

Coupons should motivate the consumer to not only purchase the product but to take notice of the brand. A well-designed coupon offer focusing on one particular product or service can generate a short-term boost in traffic to most retailers. While only a small portion of coupons may actually be redeemed, establishing brand awareness is one of the long-lasting effects of a coupon promotion.

Before starting a coupon promotion, be sure the offer is right for your market. Not every type of product, or retailer, can benefit from adding coupons to their marketing mix. In some instances, coupons may actually lower the value of a brand.

Popular Coupon Distribution Methods

There are a variety of coupon delivery channels are available to reach a retail store's target audience. Some of the more popular coupon distribution methods are:

  • Electronic Delivery
  • Free-Standing Insert
  • Instant Redeemable
  • Direct Mail
  • Shelf Pad
  • On Pack

Elements of Effective Coupons

Saving money isn't enough incentive. Like any promotional advertisement, coupons should be designed to entice the consumer to actually redeem the discount. If the coupon is being distributed via bulk delivery, it must stand out among many other coupons. Here are some specific elements a retailer should keep in mind when creating a coupon.

  • Clear, Concise Text Detailing Offer and Terms
  • Face Value
  • Product Image
  • Proper Bar Code, If Relevant
  • Any Necessary Legal Copy
  • Expiration Date
  • Company Name & Address
  • Offer or Tracking Code

Evaluating a Coupon Campaign

A coupon campaign requires testing and measuring. The use of tracking codes printed directly on the coupon, or coded in electronic delivery, allow a retailer to see which customers redeemed the coupons and where those coupons were found. Evaluating the method the coupon is delivered along with the coupon response, product sales and profits can help determine which promotion or coupon works best with your audience.

Reader Submissions: How Did You Market To Consumers With Coupons?

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