| |
| |
|
Marketing Resource Center |
|
|
|
Ditch Coupons Before Customers Ditch You
Everyone wants to feel like they're getting a good deal. Merchants often attempt to capitalize on this desire through coupon offers, rebates, and "special discounts." Coupons have become the promotional drug of choice to woo more business from new and old customers alike. Unfortunately, coupons can destroy customer relationships almost as fast as they are made. The worst coupon abusers are merchants who set a relatively high list price compared to the competition, and then use coupons or other incentive plans to discount it so buyers feel like they're getting a good deal. I had a fabulous customer service experience derailed by such a pricing blunder. I was looking for a new dry cleaner and discovered FC Cleaners (not their real name). When I walked in, they discovered I was a new customer, handed me a "Passport" book, and explained to me that I would routinely receive a significant discount whenever I presented the book with incoming dry cleaning orders. I wasn't impressed until I picked up my order. All of my shirts now had bar code labels. The computer-printed labels attached to the neatly hangered and bagged clothes described each article in detail, right down to my neck size. They truly knew how to use technology to manage a relationship! I also knew I could go to any FC Cleaners in Atlanta and be instantly identified by my bar code labels. Soon I returned to have more cleaning done. I dropped off the clothes, and then remembered I had forgotten my Passport. Oh well, I'll just bring it with me when I pick them up. As planned, I returned in a few days with my Passport. My enthusiasm for our relationship disappeared when they explained, "Sorry, you'll have to pay stupid people prices since you failed to present your passport when you dropped off your order." Of course, they didn't explain it that way. They cordially explained that their "policy" prevented them from giving me a discount. As Dr. Martha Rogers of Peppers and Rogers Group says, "Policies treat everybody like nobody", and that's exactly how I felt. When I dropped off the clothes, their computer could tell them who I was, where I lived, the details of all my garments, and my complete transaction history. But it couldn't -- or is it wouldn't? -- tell them that I was a Passport discount buyer. As a result, I was forced to pay retail and fork over an extra ten spot. From a goodwill perspective, they would have been much better off without a list price discounting program. Sometimes I'll be in line at a store when the person ahead of me presents a coupon to the cashier and immediately gets a discount. I have no such coupon. It looks like I'll be paying stupid-people prices again. On occasion a friendly cashier has offered to give me a coupon on-the-spot. Very thoughtful -- but maybe not. Does this mean their merchandise is really overpriced? Does this store have any integrity? Do they really have a consistent pricing policy? My assumption is that, for some reason, I don't look like a sucker today. If you want to use coupons for promotion, consider making them an integral part of your pricing strategy. I recommend to my clients that they only offer discounts, including coupons, for one-time irregular (preferably non-repeating) events. Examples might be first-time orders, year-end closeout of a particular model, or cleaning off shelves in preparation for inventory. A new product launch would qualify. However, end of the month discounts don't hold water, nor does the lame excuse, "I need another deal to make quota." Coupons are useful to get people in the door and give you a try, but you need to have a way to track repeat buyers. Don't train customers to never show up without a coupon. I won't buy a pizza without one. Instead, honor them with a "frequent buyer" program that rewards them with lower prices or -- better yet -- additional services when they come back time and again. Show them you know they're not stupid, and they'll know how smart you are. The goodwill you generate will result in good business for you. © 2005 Paul Johnson. All rights reserved. Note: This article is available for reprint at no charge. We only ask that you include our copyright notice in your reprint, along with the About the Author (byline) information we provide at the end of the article. Paul Johnson of Panache and Systems LLC consults and speaks on business strategy for systematically boosting sales performance using Shortcuts to Yes?. Check out more salesforce development tips at http://panache-yes.com/tips.html Call Paul direct in Atlanta, Georgia, USA at (770) 271-7719.
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
7 Tips for Successful Postcard Marketing Simple low-cost postcards have become a valuable business tool for modern marketers. They can produce a surge of traffic to your web site or a flood of high-quality sales leads. How Much Is Your Popcorn Worth? Powerful Lessons In Marketing & The Psychology Of Selling - Part 3 To read the beginning of this special report, you can read part two here: http://ezinearticles.com/?id=58712Let's continue to discuss the various marketing principles that are involved in "popcorn marketing":2. Why Do You Need to be in the SERPS? Why does your business need to be in the Search Engine Results Pages (SERPS)?Search Engine Optimization and Search Engine Marketing both have the same goal, which is to help visitors find your website. Ten years ago there was probably nobody searching online for your product or service. How Do I Define My Market? Your market is who you want to reach. Your customer. How Simple, Small Changes Can Add Real Money To Your Pocket I want to share with you a story. This story happens everywhere and everyday in America . Your Ideal Client A lot of small businesses make the mistake of thinking that their product or service is good for just about anyone. The logic is "why should I limit my market to a smaller segment of the whole and sacrifice a sale. Are Corporate Awards and Corporate Gifts Beneficial for Your Business? With the increased challenges that all companies are faced with, many corporations have implemented various initiatives to continue to grow corporate earnings and shareholder value, some have discovered the strategic value of corporate awards and corporate gifts. From the boardroom to the frontlines to the client across the country, corporate awards and gifts offer many benefits to enhance performance. Discover 7 Hidden Profit Producing Secrets Would you like to learn the lessons of the businesses that struggled last year without having to follow in their footsteps? I’d like to share with you seven of the mistakes that are among the most common that are made. This information is value critical if you intend to see marketing efforts drive sales increases. Marketing On The Cheap: Join The What? Your local Chamber of Commerce.Now before you stop reading, I assure you this really works, and no, this is not an advertisement for the Chamber of Commerce although it may read like one. Postcards - Picture Perfect Promotion There is a simple but almost mystical law which governs promotion and marketing and their relationship to the amount of business generated: business will come in to the degree that you get your message out, promote, let people know you are there, advertise, write to people, call people, e-mail people and generally communicate to existing or potential clients.It isn't a fact that registers easily and it almost takes faith to follow this dictum until you have seen it work over and over in all sorts of different businesses and organizations (as I have). Marketing Got You Stumped? It's not unusual for entrepreneurs to find the whole idea of marketing intimidating. Even seasoned business owners often feel their marketing efforts aren't working. 5 Ways to Give Your Web Site a Big-Company Look and Feel We all DO judge a book by its cover, and the same saying goes for Web sites. I've seen many entrepreneurs offer great information on their Web pages, but compromise their image dramatically with a few amateur mistakes that can be VERY unforgiving. Marketing Strategy and Template for Independent Professionals Having a marketing strategy and marketing approach is very important. Thus, instead of recreating the wheel, here is a short, sweet, easy-to-understand marketing strategy template to help you place your ducks are in a row in designing your marketing strategy. Marketing Planning Made Simple - Another Small Business Power Tool Marketing planning must be really difficult and complex, otherwise why would there be so many books written on the subject ? right?Well, I'm just enough of a skeptic to believe that many of these books were designed more to make money for their publishers and authors than to make marketing planning simple and understandable.I spent more than 30 years working with very successful small business people who never wrote a single marketing plan. Go Guerrilla Jay Conrad Levinson coined the term guerrilla marketing, which I define as low-cost, creative and typically self-implemented public relations techniques.Here are a few thoughts that might spawn some ideas for your own business. Is Your Marketing Working... That is the question, you should be asking yourself. Many feel that it is I'm sure. Marketing Success - Marketing Strategy - Brand Identity Guru Marketing message x Credibility x Visibility = Marketing SuccessThese three variables, when working positively together, create success. Period. The Magic of Keep-in-Touch Marketing Yesterday I received a phone call from an acquaintance that I've met once or twice but haven't seen in over a year. She wanted to let me know that she was referring me to a client of hers who needed help with his Web site copy. Laws of Marketing - The 10 Immutable Most marketers believe that anything is achievable if you are energetic, creative or determined enough. But laws of marketing follow laws of business, and if you violate them, you risk your marketing dollars. The M-Word It was a real eye-opener to hear the perceptions people have about what it means to market professional services, as well as the anxiety the "m-word" (marketing) conjures up. It reminded me that, just because professional service providers have a lot of expertise in their chosen field, it doesn't mean they have the same level of understanding about the business of growing a practice.
|
| home | site map | Advertising Articles |
| © 2006 |
