Which one gives you the biggest return and how to use percent off offers?
This is something many people have asked me over the years. What works and what doesn’t? The answer to that questions really lies in what you are trying to accomplish with your advertising effort. Do you have a plan and what are your goals.
Here is my list of the most effective to the least effective coupon offers that are used. These are not always the case. See my examples of how these aren’t always correct below and they aren’t always practical for all businesses either.
Coupon offers from most effective to least:
1. FREE
2. 1/2 Price / BOGO Free
3. Dollars off ($1 off $10)
4. 25% off
5. Package Deal
6. Percent off
Some examples :
Free gets the attention of customers and it is especially great when introducing something new. Make sure there are no strings attached and that it is spelled out completely and is something your customers will want.
BOGO is very popular and really means you are giving them a 25% discount. Spell out the details and this can really be great.
1/2 price is hot! this can be displayed as 50% off or 1/2 off or 1/2 price. Depending on what you are selling will depend which will give you the best bang.
I have a customer that used a dollar off coupon for his auto repair shop. It was a good offer of $10 off a $100 or more repair. It worked good but when we changed it to a 10% off any repair of $100 or more, he got 50% more returned. Everyone wants a discount on the big ticket repairs and will spring when it is given. Don’t keep running the same special.
Another customer – A Dollar store – She was using 20% off entire purchase. We changed it to $1.00 off a $10.00 purchase and she doubled how many she got. The logic here is that people looked at the 20% of as worth 20 cents. While when they saw the $1.00 off coupon, it was worth a dollar; after all, who spends less than $10 when they go to the dollar store.
When making offers, consider the following:
• A good coupon helps people do more of what they want to do, rather than what you want them to do.
• A coupon MUST look like a Coupon.
• Don’t try to unload unpopular items.
• Don’t use too restrictive of offers.
• Don’t use low percentage off offers.
• A good low risk, FREE offer can build your business fast.
• Don’t keep running the same special. Change it up to keep them fresh and used. Stale coupons slow down after three to four months. Rotate between two or three different type coupons.
Email me if you have questions or want to ideas. Boyd@bpmedia.com