Today’s Consumer Still Loves Coupons

She just doesn’t like clipping them.

When my kids were little, I would rip through the Sunday paper looking for coupons on diapers.   I am not much of a coupon person in general, but we went through a lot of diapers and it just seemed silly to pay full price.

Once my kids finally mastered the potty, I said goodbye to diapers and good bye to coupons.  They were just too much trouble to keep up with, organize and keep track of when I went shopping.

But I do like saving money, so I am the perfect target for digital coupons.   Instant savings I can download to my computer as I head out the door, or better yet to my phone.

And I am not alone, it seems the down cycle in the ecomony, along with an increase in technology which delivers coupons has led to the first increase in the use of coupons in almost twenty years.

From a study by coupons.com (ok so maybe they are a little biased) the demographics of the average digital coupon shopper is not the low income, penny pinching  housewife.  Instead, the consumer who prints digital coupons is an attractive target for many products and services.

• has an average household income of $97,000,
• a 23 percent higher income level than the U.S average.
• 34 percent of those who print digital coupons have a college degree (up from 32 percent in 2008), compared to 30 percent of those who use newspaper coupons and 27 percent of the general populace.
• Users of digital coupons have higher household incomes and are better educated than users of newspaper coupons and the general population.

So what do these numbers mean to you?  As the delivery mechanisms continue to improve, and the economy continues to put pressure on consumer spending, coupons, particularly those delivered digitally can be an excellent incentive for existing and new customers.

Interesting, as I was putting the finisihing touches on this post ( sometimes I write a few weeks out) I read a post by Kyle Lacy on the subject of integrating your marketing, tieing all the elements together, especially when you already use printed coupons in your mix.

Deal of the Day

I started my career in retail sales.  I have sold everything from luggage and lingerie, to linens, housewares, dresses, sportswear and notions.   ( No that isn’t a typo for lotions, it is notions – buttons, zippers, needles and thread)

In each of those product categories, we understood the power of the limited offer, private or invitation only sale  or door-busters as effective tools to encourage consumers to come in and BUY NOW!

I was reminded of these strategies when I read a post by Alexandra Samuel in which she discussed three social media ideas.  The one which caught my attention, she called the “Deal of the Day”.  She suggests:

Create an online presence that lets people know about a special, time-limited offer. It could be a product available in limited quantities, a discounted service or a donation match. Update your offer regularly so there’s a reason for your audience to check
back frequently.

As I read her notes, I realize this type of promotion isn’t very different then the KMart Bluelight Specials which let people know there is a special on Aisle 9 for the next 10 minutes.  It is an effective strategy for KMart, and it can be for you as well.    Joe’s Butcher Shop in Carmel routinely sends special coupons to customers via email, and Tuchman’s Dry Cleaners lets you download coupons right from their website.

Alexandra also suggests you:

Create a Twitter feed or Facebook page that you update once a day (or even once or twice a week) with a special offer. Promote your feed or page to fans or potential customers so they can track deals in real time.

Promotions are a great way to boost sales.  Don’t just sit there, Sell Something!

Free is Not Always Better

Retail merchants and business owners in general are struggling with the sluggish economy.  And as they do, the idea of outrageous promotions as a way of getting noticed, and getting customers to try their products seems like a reasonable idea.

But before you offer your services for free read this short post by Seth Godin in which he suggests that if Craig’s list charged even $1.00 for each listing, not only would they make more money, but serious users would actual find the service more beneficial.  Spammers and people with other bogus listings would go somewhere else.

As I read his post, I realized that free is not always better.  Sometimes charging more allows you to deliver a higher level of service to a smaller audience .

I kept this in mind as I launched my FREE How to Write a Business Plan in Ten Weeks Workshop.  Offering the online program for free has allowed me to reach more than 100 business owners who may someday become clients.  It is great way to show case what I do, and engage potential clients.   I will probably offer other programs when this one is done.

In this case I decided the experience of each user would not be aversely impacted by others in the program.  For live seminars however, charging a reasonable price will screen out people who are not series about writing a plan.

If you are considering giving something away for free, consider not just the lost revenue but the impact on  your other customers.