Whether you’re trying to build goodwill with existing customers or trying to steal some business from your competitors, direct mail coupons can play a big role in your campaign’s success.
Studies show that people still value coupons, despite the era of digital deal comparisons. About a third of all consumers use coupons on a regular basis, while nearly 40% of consumers are constantly on the lookout for good coupons.
Using direct mail coupons can help you take a piece of this financially-savvy market and turn it into customers – and potentially repeat customers!
Here’s how to make your coupon marketing as effective and profitable as possible:
Step #1 – Define Your Purpose of the Coupon
The obvious goal, of course, is to drive sales. But direct mail coupons can be much more valuable than a short sales spurt.
First, think about whether you want to attract new business or reconnect with old customers (or both!). How will you get their attention? How will your offer help you connect with the right people?
Also, consider that ill-designed coupon strategies do little more than offer a short-term sales boost. Ideally, your coupon campaign will help to create loyal customers and give your brand a boost, both of which can mitigate the revenue loss you experience by cutting your prices.
[click_to_tweet tweet=”But if you’re only using a coupon to earn one-off sales without a plan for ongoing marketing and nurturing, you likely won’t be satisfied with the results.” quote=”But if you’re only using a coupon to earn one-off sales without a plan for ongoing marketing and nurturing, you likely won’t be satisfied with the results.”]
Step #2 – Create a Value Statement
Truth be told, anyone can send out a coupon in hopes of drumming up some quick business. But other than the fact that you’re offering a discount, why should someone take advantage of your coupon?
Value statements are essential in coupon marketing for a variety of reasons. For starters, it shows the recipient what’s in it for them if they take advantage of your offer. It helps them compare the deal to your traditional offering to see if the savings are worthwhile. Plus, it should show them why your offering is better than those of your competitors.
Step #3 – Decide What Your Target Audience Will Value Most
Think about all the direct mail coupons you toss in the trash versus the ones you keep. Did the others not provide enough value? Were they for items you weren’t interested in?
Not all coupons are created equal. It’s up to you to decide what you offer that your customers will be most interested in and what it will take to get them to convert.
It’s also important for your coupon to match your business. Take a look at some of the most common coupon discounts:
- Percent-Off Coupons – businesses offer a certain percentage off the entire purchase
- Dollar-Off Coupons – businesses offer a certain dollar amount off the purchase. With this type, many businesses set a minimum purchase amount before the coupon is honored.
- Free with Purchase – a coupon entitles a buyer to receive something free with a stipulated purchase.
- Coupon Codes – sending coupon codes can direct people to make an online purchase. This is a great way to track redemption rates and get more data about your customers.
- BOGO Coupons – the Buy One Get One coupon can pack a lot of value into your offer while increasing your ticket size. Consumers must buy an item, then will receive a free or discounted item.
- Low Price Coupons – these coupons offer a fixed lower price point for goods or services than normal.
- New Customer Coupons – you can avoid cutting your profits on existing customers by targeting new business only.
- Loyalty Coupons – most commonly found in “punch card” formats. You can build customer loyalty by offering discounts after they buy a certain number of items or spend a certain amount.
- Rebate Coupons – buyers will pay full price for an item but receive a portion of the cost back in the form of a rebate.
When it comes to effectiveness, there is no one size fits all. To get the most benefit, you’ll want to choose an option that makes sense for your business and provides value to your customers.
Step #4- Identify Your Terms and Conditions on the Coupon
There’s nothing more brand-damaging than a promising offer that doesn’t live up to consumer expectations. Customers who want to take advantage of your direct mail coupons don’t want any surprises along the way.
If you fail to disclose your terms, such as an expiration date or limit offer, then you’re faced with the difficult decision not to honor the coupon. This can lead to a feeling of resentment from your buyers, and could ultimately brand you as a dishonest, shady, or complicated company to do business with.
Granted, your coupon will likely require limits. Set an expiration date, quantity limit, maximum discount offer, or any other criteria buyers must meet. But also try to keep it as simple as possible. You don’t want your core message to be muddled by terms and conditions. Nor do you want to discourage people from taking advantage of your offer.
Step #5 – Hire a Professional Direct Mail Service
Partnering with a professional can help you get as much benefit from your campaign as possible, and likely for less than you could do it yourself. Professional direct mail service providers can help with every aspect of the process. The best providers provide all services required, from designing and printing to addressing, mailing, and tracking.
This gives you much more leverage over your campaign, as well as data-driven insights to see how well your campaign performed.
Take Your Marketing Strategy to the Next Level with Direct Mail Coupons
Direct mail coupons can be a valuable marketing tool that helps you get noticed by the right people, boost sales, and provide a chance for ongoing marketing. The right offer combined with the right visual elements will create a compelling campaign. A campaign your target audience can’t help but take advantage of.
Let one of our skilled direct mail experts help you craft your campaign from start to finish to maximize its impact and give you the results you expect.