The goal of any offer or coupon is to encourage the consumer to try the product or service. Although we would want the consumer to try our product just because our ad looks amazing note tone of sarcasm , the truth is the consumer needs an incentive to depart from their current habits and try something new.
So the question is: How much should you discount? The answer is : you have to run the numbers.
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If you look closely, you can see how the amount of calls you get directly affect the ROI of the promotion, and after only one month, only 2 of the 3 promotions look profitable. However, if you take into consideration lifetime value of the customer , then all 3 promotions look profitable. So even if an offer looks like a losing proposition at face value, when you do a financial model, you will be able to tell if an offer is profitable for you or not. Note : A key component of this model is cost-per-call. This calculation should be done per every marketing tactic you use money mailer, direct mail, tv, radio, Google Offers, Yelp Offers, Groupon.
Each marketing tactic has a different cost-per-call and knowing this for all your marketing activities will help you allocate your marketing budget more wisely.
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However, the only way to find out the cost-per-call is to track calls. Instead, you should use a vendor that specializes in call tracking. Some of them are FREE and most are inexpensive. I assure you will be surprised at the effectiveness or lack thereof of your marketing tactics. Tracking calls is even more important if your marketing budget is sizable.
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Franchise coops , for example, are made up of a group of franchisees who pool their money to advertise locally as a group. Many business owners seem to forget that the purpose of a coupon is to entice people to use them!
If what they are saying is that they are afraid that I will try it and leave, then what they are really saying that their product is not good enough for me to remain a customer! The ladies from the music school actually said that they could not give a class away because people would just take the class and leave and that they would be out of business. Most importantly, is that what most people would do? The food was great, the service was great, and when it came to pay, we gave the waiter our coupon and he not only gave us our discount but told us to keep the coupon and use it again another time.
Now, this restaurant has become one of our favorites and we go there about once a month! The typical customer is not just worth the amount she consumes on the transaction that resulted from the use of the coupon. In a restaurant, for example, the value of the customer is not just that one meal but maybe 3 or 4 times that amount, because that customer will likely come back assuming the product offering has value add.
I doubt that they would go out of business if they gave away a free class!
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They take the comments and complaints that you make about their products very seriously. They want to know how you, the consumer, feels about their products, and they will usually reward you with a lot of coupons for your trouble. In fact, once you are on their customer mailing list, you may find that you continue to get coupons in the mail without any additional effort.
When you contact a company, you want to be very honest with your feedback. You can encourage manufactures to send coupons just by telling them something in one of three areas. Praise : Tell the company how much you enjoy their product and be specific. Did it fulfill a need in your home? Was it so much better than the competition? Suggestion : Tell the company how you think they might improve the product or the packaging, or let them know what other products that you would like to see them provide.
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It is important to be nice and objective. It is best not to flat out ask for grocery coupons; most of the time the companies themselves will make the offer to send you free coupons in the mail. Here at FreeCoupons.
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The following food companies have shown themselves to be willing to send a lot of coupons when asked. Remember your tips about how to write for grocery coupons in the mail and then get to it. Some companies will send coupons right away, while others may take up to six weeks. Be patient.