Earn New Business
and
Build Customer Loyalty
Your business can survive this crisis without you making major compromises with your prices.
There are many ways to offer a better bargain without damaging your bottom line.
This is the time when you can use discounts and coupons to not only achieve your revenue goals but also win new customers.
People are keeping a close eye on their wallets. If you offer great deals, you can entice customers that may normally be more loyal away from your competitors.
Here are some creative ways to use discounts to drive customer traffic and earn their loyalty.
Philosophy
Customer acquisition cost, also known as CAC. This is what it costs you to acquire a customer. Take the time to do a quick CAC calculation. How much does it really cost you to acquire a customer? Make sure you include your office costs, direct marketing costs, personnel costs, communication costs (cell phones), etc.
When you add them all up and then divide the total by the number of new customers you get per month, the number can be astounding.
It’s not uncommon for the cost of a new customer to exceed hundreds of dollars.
So, be aggressive in retaining the customers you have.
Promote Your Offers
Types of Discounts
You can use the following types of discounts:
- Cash discount;
- Percentage discount;
- Product bundles;
- Member-exclusive rewards;
- Free Shipping;
There are different ways to promote discounts and coupons. Here are the best and most effective practices and how to implement them.
Email Subscription Offer
Emails are a great and cost-effective marketing tool with a huge ROI (typically $38 for every $1 spent). By getting your customers’ email addresses, you have the opportunity to build a relationship, earn their loyalty, and drive your sales.
Tempt your customers to your newsletter or email subscription by giving them a discount as an incentive.
Example:
Offer a discount coupon for 5-20% off to customers’ first purchase or booking for exchange of their email address.
Customer Loyalty Rewards
Over 90% of consumers are a member of a member-exclusive loyalty program. They enter these programs to get better offers and discounts as a reward for giving you their repeat business.
Use such programs to optimize your business during this crisis and potentially earn new customers.
Example:
Offer an additional 5% discount for any purchase to all members of your program. You can also give your loyal clients early access to deals and upcoming products.
Gamification
Gamification is an interesting way to promote discounts and coupons. It is also an effective technique to attract new customers as it offers a positive and fun experience.
Example 1:
If you’re a landscaper, you can ask your customers to upload pictures of their lawns and tell them that the lawn in the worst condition will get a discount coupon for 10% off for your mowing services.
Example 2:
You are a hairdresser, upload a photo of your work and ask your customers to describe it with one word. The best description gets a 5-15% discount on his next visit to your salon.
Clear Inventory, Earn Revenue, Win New Clients
Product Bundling
This is a great strategy to entice customers to order more products or services while enjoying the benefit of a bundle pricing.
Bundling works because people perceive that they are saving money by getting two or more things, instead of paying them individually.
Apart from increasing business, bundling will also enable you to get rid of products that are taking valuable space and have lost most of their ROI.
Example:
If you sell jewelry, offer a set of earrings and a bracelet at a lower price.
Re-Engagement
Do you have one-time customers that you wish to reignite your connection with? Use re-engagement discounts to attain your objective. Earning back old customers can help your business survive the crisis.
Example:
Use app messaging, push notifications, and SMS to inform your inactive customers that you are willing to give them a cash discount if they use your services or buy your products.
Milestone Deals
Important customer milestones are a great avenue for you to drive revenue and earn loyalty. Make your customers feel special by offering them bargains on the day of their birthday or anniversary.
Example 1:
If you’re a restaurant, offer couples a 15% discount if they choose to celebrate their anniversary at your establishment.
Example 2:
Give shoppers 10-20% birthday discount coupons to entice to purchase products from you on the day of their birthdays.
Referral Offers
Most companies owe a vast majority of their business to word of mouth. People are more inclined to trust their friends and family about the quality of a service or product.
Use that to your advantage by giving your customers an interesting discount when they refer your company to their acquaintances.
Example:
Offer a $20 cash discount to all your customers who have recommended your services. All they need to do is have your new clients tell a special promo code that will earn them their deal.
Use your newly acquired knowledge of discounts and coupons to boost your business during this crisis and earn the repeat business of your customers.
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