The black cloud may have lifted, but there’s a long way to go before the economic balance is restored. So, it’s no surprise that some companies are using vouchers and special offers to entice customers to their website or venue.
Popular websites such as Moneysavingexpert.com, Vouchercodes.co.uk, and the many others floating around in cyber space, seem to have bred over the last few years. Nowadays, it’s the norm to choose which restaurant you go to based on the vouchers available. There is almost a guilt attached to paying full price for anything when there are so many offers on the market all ready for the taking. However, whilst bagging a bargain is great for the consumer, how great is it for your business?
Vouchers, discounts, special offers – they all have the power to increase foot fall and bring a new range of clientele to your books. There is an opportunity for businesses, by offering savings, to reach consumers who wouldn’t normally have access to their products or services – bringing longer term benefits in addition to short term profits. The trial may be all that a consumer needs to be persuaded that the quality of what they receive, or their enjoyment of it, is worthy of the higher price tag. In this instance, the consumer may continue to buy from the company even when the offer has expired.
Research recently undertaken by online agency fast.MAP on behalf of Promotional Marketing magazine supports this idea, showing how discounts can entice people over from competitors’ brands. A whopping 76% of the people asked, said that they’d try an alternative to their usual brand if they were given a coupon of 40p or more on a purchase of £2. 28% of these went on to say that after being tempted to use another brand they have remained loyal to this brand because they preferred it.
It is common sense to take heed of the population’s financial situation and respond to it. After all, Pizza Express has been running a two for one offer throughout the recession and it seems to have been a great success. However, it is important to acknowledge the possible consequences of such long term offers. What happens when they finally come to an end? Will the regular customers continue to eat at full price, or will they simply drift away? After all, who wants to pay full price for something you’ve been having for half price for over two years?
There is a real risk of devaluing your product/service if you aren’t careful with your use of offers. Will reaching new clientele be at the expense of losing your existing one? What if people become immune to your offer, do you then reduce it further? It takes a careful balancing act to reap the benefits of your offer, without paying the price.
We’re told that the best things in life are free. That’s all well and good for the consumer, but not so much for the struggling business owner who needs to make a profit. The key to maintaining the value of your product is to ensure that any discount you give is earned. If your customers don’t have to do anything to get their voucher, they won’t value it. Whether it’s asking them to subscribe to your newsletter, or giving discounts to people who spend over a certain amount of money, there are ways to make sure you protect your brand’s reputation.
Don’t overlook the positives of using offers and vouchers to draw customers in. A coherent strategy needs to be put in place to monitor their effectiveness and long term consequences, but that doesn’t undermine their potential in the work place. Research commissioned by Valassis, a leading coupon service provider, at the end of 2009, shows that there has been a 28% increase in the number of consumers looking for a promotional offer in the last twelve months alone.
