Coupons are good for consumers and small businesses alike. They help consumers save money on the things they want and need. They help small businesses get new customers in the door, as well as boost sales.

Coupons can also help small businesses build loyalty with existing customers, stand out from the competition and increase brand awareness.

But, it’s not enough to just have a coupon. You need an effective offer that compels your customers to take action. You also need to get your coupon in front of the right audience and entice people to actually use it.

That’s where coupon marketing comes in. In this blog, we’ll cover a few key tips to help you get customers and increase sales with effective coupon marketing.

7 coupon marketing tips for small businesses

 

#1. Make your coupon feel more like a gift card

Most people see coupons as dispensable. They’ll use them if they have them — and they remember that they have them — but they won’t go out of their way to get them. You can change that perception by making your coupon feel more like a gift card.

To do this, assign a specific dollar amount to your coupon rather than a percentage off. For example, offer a $50 coupon rather than 50% off. This communicates to the consumer that your coupon is valuable and worth seeking out.

A good real-life example of this is Kohl’s or Old Navy cash. Even though store cash is basically just a coupon for a specified amount off the total bill (as long as the minimum purchase requirement is met), it feels like a gift card, or free money. That compels customers to use them.

Once you’ve determined what kind of discount you want to offer, create a coupon code within your POS (point of sale) system.

#2. Make your coupons single-use

Another way to make your coupons feel more valuable is to make them single-use.

This means that each coupon can only be used once by one customer. This ensures that people who receive your coupon actually use it, rather than tucking it away and forgetting about it.

It also protects you from coupon abuse, which is when a customer uses the same coupon multiple times or shares it with others so they can use it too.

If you have a loyalty program, you could link coupons to specific loyalty accounts and track whether or not they’ve been redeemed.

Even if you don’t have a loyalty program, you can still track coupon usage by requiring customers to present the coupon at the time of purchase. You can then keep track of how many coupons have been redeemed in your POS system.

If you do require customers to present the coupon at the time of purchase, make sure your staff is trained on how to handle it. They should know how to look up coupon codes and apply them correctly to the purchase.

#3. Set a minimum order value

Another way to ensure that your coupon is actually used is to set a minimum order value.

This means that the coupon can only be applied to an order that meets a certain dollar amount. For example, you could require a $50 minimum purchase for the coupon to be valid.

This not only protects your bottom line, but it also ensures that people who use the coupon are actually interested in your product or service.

It’s important to strike the right balance with your minimum order value, though. If it’s too high, people won’t use the coupon. But if it’s too low, you won’t make enough profit off the sale.

A good rule of thumb is to set your minimum order value at the average order total for your business. That way, you’re sure to make a profit, but customers are still getting a good deal.

Once you’ve determined your minimum order value, be sure to include it on the coupon itself. This will avoid any confusion or frustration when people try to use the coupon.

If you have a brick-and-mortar store, you can also include it on signs near the register or on your website.

#4. Add an expiration date to your coupons

Adding an expiration date to your coupons is a great way to create a sense of urgency and encourage people to use them sooner rather than later.

It also protects you from coupon abuse, as people are less likely to try to use expired coupons.

When setting an expiration date, be sure to give yourself enough time to promote the coupon and give people a chance to use it. A good rule of thumb is to set the expiration date about two weeks after you start promoting the coupon.

This gives people time to see it, remember it and make a purchase. But it also ensures that they don’t hold on to the coupon for too long and forget about it.

Be sure to include the expiration date on the coupon itself, as well as any other marketing materials you use to promote it. This will avoid any confusion or frustration when people try to use the coupon.

If you have a brick-and-mortar store, you can also include it on signs near the register or on your website.

#5. Design your coupon to look like a gift card

One of the best ways to make your coupon feel more valuable and more like a gift card is to design it to physically look like a gift card.

Gift cards are a popular present, so people are already familiar with the format. And they know that gift cards can be used like cash to make purchases.

When you design your coupon to look like a gift card, people will be more likely to use it right away. They’ll also be more likely to spend the full value of the coupon, as they’ll think of it like cash.

Here are a few tips for making your coupon look like a gift card:

• Use high-quality paper or cardstock
• Include your business name and logo
• Add a photo or design
• Use bright, eye-catching colors

No matter what coupon design you choose, be sure to include all the important coupon details, like the expiration date and minimum purchase amount.

People are used to being inundated by coupons in the mail, which is why they have no trouble throwing them away. But, if you make your coupon look like a gift card, they’ll think twice.

#6. Distribute and market your coupon

You can create the perfect offer and design the perfect coupon, but it won’t do you much good if your customers never see it.

It’s important to promote your coupon and make sure it gets in front of your target audience. There are two main avenues you can take to distribute and market your coupon — digitally and physically.

Digital coupon marketing

Digital coupon marketing involves creating a digital coupon that you can distribute to your customers online through tactics, like email marketing, social media marketing and online advertising.

Here are a few of the advantages of digital coupon marketing:

• You can reach a large audience quickly and easily
• It’s easy to track coupon redemption rates
• Customers can use digital coupons instantly

When you’re promoting your coupon online, be sure to include a strong call-to-action (CTA) that tells people what they need to do to redeem the coupon.

Your CTA should be short, clear and easy to understand. For example, “Show this coupon at checkout” or “Enter coupon code at checkout.”

Physical coupon marketing

Physical coupon marketing involves creating a physical coupon that you can distribute to your customers offline through tactics like direct mail, in-store signage and local print advertising.

Here are a few of the advantages of physical coupon marketing:

• You can target a specific geographic area
• It’s easy to create a sense of urgency with expiration dates
• People are more likely to hold on to a physical coupon and use it later

If you’re going to distribute your coupon offline, be sure to include all the important coupon details, like the expiration date and minimum purchase amount. You’ll also want to make sure your coupon stands out so people will notice it and pick it up.

To do this, you can use bright colors, interesting fonts and eye-catching designs. You can also include a CTA that tells people what they need to do to redeem the coupon, like “Show this coupon at checkout” or “Enter coupon code at checkout.”

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Coupons can be a great way to market your small business. But, if you want to use coupons effectively, you need to put some thought into them. Use the tips to create coupon offers that will help you attract new customers and grow your business.

Marketing 360® has the tools and talent you need to create an effective coupon marketing campaign for your business. Learn more and see our plans and pricing.