Using coupons to promote sales
Nowadays, coupons are one of the most popular marketing tools used to increase sales and promote customer loyalty. As a rule, it is the consumer products manufacturers who issue coupons to customers through various channels in order to draw attention to their products and generate a direct incentive to purchase. When customers redeem these coupons at the check-out in a retail store, the customers are granted the corresponding discount and the retailer is reimbursed for this through the coupon clearing service provided by a coupon clearing house.
Coupons are mainly issued by consumer products manufacturers and can be redeemed at all relevant retail outlets. The process by which the corresponding discount granted by a retailer is reimbursed to that retailer is called ‘coupon clearing’ and this is undertaken by special coupon clearing houses. It would be difficult for manufacturers and retailers to directly make suitable mutual arrangements with regard to settlement procedures. By employing a clearing house, the processes for both parties become more efficient. And retailers and manufacturers have a partner to hand who can help them manage a multiplicity of simultaneously on-going coupon campaigns.
Whether a product launch, relaunch, new customer acquisition or sales increase, with a couponing campaign your marketing goals can be effectively implemented. Due to the actual price reduction of the product, the shopper is activated. As a result of the price reduction, new customers receive the incentive to buy the product, and steady customers take the price reduction as a reward for their brand loyalty. This has a positive impact on brand communication, as the awareness and image of the brand among customers is increased. In addition, the success of a couponing campaign is easily measurable and can be reviewed at any time. Customer feedback is also possible. As a result, short-term increases in sales are achieved, especially in the case of new product launches. For manufacturers, this offers the opportunity to improve their listing in the trade or to test their new products. In addition to shopper activation, manufacturers can also mitigate negative sales effects through price increases, product changes or seasonal fluctuations. Couponing thus provides the opportunity to build customer loyalty at various levels, to influence the communication between manufacturer and customer, to market the product and to boost sales.