What types of customer redeem coupons? Essay
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In the recent times, competition in businesses has become a standard thing. Businesses that continue to lag behind and lack to utilize marketing strategies such as the use of coupons risk being wiped out by more competitive businesses (Ailawadi, & Gupta 2014). Coupons are documents that are mostly used in marketing and could be redeemed for a rebate or financial discount when a person is purchasing a product. For instance, in the current times, nail polish business has peaked, and more businesses are trying to outdo each other in the trade.
In a bid to reduce the competition, businesses that wish to outshine the others and retain the competitive edge are advised to embrace the use of coupons (Ailawadi, & Gupta 2014).
A nail polish business could distribute the coupons via mail, newspapers, the internet, coupon envelopes, and mobile devices as well as directly through retailers. In most cases so as the nail polish business could still make high revenues and also maintain high traffic in their business, they could use the coupons discriminatively. This is because research has shown that only price mindful clients are likely to spend their time to demand the savings (Hui et al., 2015). Thus, retailers could use coupons to give lower prices to only those customers who would otherwise go elsewhere. Additionally, the business could also use the coupon as a strategy to curb competition in regional markets where competition is high. Coupons are beneficial as they help businesses grow their market share, increase their sales volume, foster loyalty, sell faster as well as drown out competitor advertising (Hui et al., 2015).
Ways in which the nail polish business could use coupons in marketing
Generate repeat business
By a nail polish embracing to offer consumers coupons, their customers would feel encouraged, and as a result, they would strive to make repeat businesses. This is because coupons act as a form of discount and thus the business would become a top choice in the consumers’ shopping list (Gallimoreinc, 2017). Studies have shown that repeat clients remain any business’s best and firmest source of revenues. Research has also shown that repeat customers revenues can be valued ten times as much as the first purchasers. Thus, it is very vital for a nail polish business to embrace the use of coupons in a bid to try and boost their sales (Gallimoreinc, 2017).
Consequently, studies have revealed that businesses that embrace the use of coupons accelerate repeat purchasing behavior. For instance, a nail polish business that wants to make more sales and outdo their competitors could start using the coupons. Specifically, this business could make use of a coupon that has a time-sensitive discount offer (Gallimoreinc, 2017). This is a type of a coupon that has an approaching expiration date. With this, the consumers will constantly over time be compelled to buy more products faster. As a result, the business will make more revenues and outdo their competitors.
Increase consumption rates
A nail polish business could use coupons as a strategy to reduce the cost of ownership. In the process, the customers will become more willing to purchase more of their products (George & Lord 2015). As a result, the consumers spot the value of the business’s product and become more willing to use it. Customers get less concerned about waste and become more interested in worth. As a result, the business ends up selling more in a short period.
Block competitor messaging
The nail polish business could achieve gaining a competitive edge over their competitors by using coupons. Since coupons work as a form of deposit, it could be effective in challenging the business’s competitor who could be having pretty packaging, funny ads as well as some other desirable traits (George & Lord 2015).
Ways in which the nail polish business could use coupons
A coupon strategy is often a handy tool in attracting consumers. Nevertheless, businesses should ensure that this approach fits into their overall brand strategy (Gallimoreinc, 2017). It could become tricky at times trying to offer discounts on products, and it thus becomes paramount that businesses such as the nail polish to embrace ways that will work for them.
Going after new customers with coupon codes:
These are some of the ways that a nail polish business could utilize to go after new customers.
The nail polish business could simply tweet out codes for coupons and as well append a hashtag for the main word or brand name of the product (Thebalance, 2016). For instance, Take 20% off on all nail polish products on Black Friday! Use this coupon code: BLACKFRI20 only at nailposhsupersotresusa.com #blackfriday. Additionally, the business could tweet on the same several times.
In this, the business could upload the photo of the product along with a short accompanying message about the promotion (Thebalance, 2016).
Rewarding new customers with automatic discounts
This aspect will play a significant role in building customer loyalty since it is often applied to their first purchase (Thebalance, 2016).
Coupons are an essential marketing strategy. Most of the businesses that have maintained constant sales as well as customer retention are those that are reported using coupons. Thus, it is very paramount for the nail polish business to embrace this strategy.
Ailawadi, K. L., & Gupta, S. (2014). Sales Promotions. In the History of Marketing Science (pp. 463-497).
Gallimoreinc. (2017). How Do Coupons Help Marketers Sell More Product? Retrieved from https://www.gallimoreinc.com/learn/how-coupons-help-sell-more-product.php.
George, R. J., & Lord, J. B. (2015). Alternative Retailer Couponing Strategies: Consumer Reactions and Marketing Implication. In Proceedings of the 1984 Academy of Marketing Science (AMS) Annual Conference (pp. 306-310). Springer, Cham.
Hui, S. K., Inman, J. J., Huang, Y., & Suher, J. (2015). The effect of in-store travel distance on unplanned spending: Applications to mobile promotion strategies. Journal of Marketing, 77(2), 1-16.
Thebalance (2016, September 9). Coupons in Retail. Retrieved from https://www.thebalance.com/coupons-in-retail-289018.