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by Joe Guertin
The Streetfighter Sales Coach
Why is it that we're still falling into the trap
of having new customers use coupons to "test" the effectiveness of our papers? After two hundred years and many billions in invested, I believe we can safely say "it works." What's got to be tested is the offer, and a little bit of your marketing expertise.
Here's my first piece of advice: the "50 cents off" offer will only work for groceries. The grocery couponing strategy is collective, meaning coupon quantities created the savings. Most grocery store operators will agree that 50 cents off a jar of pickles, by itself, would not drive store traffic. In a free-standing offer, the coupon offer should scream out "WOW! This is an incredible deal!" Free hair care products with a cut, buy one lunch special, get the next free, an oil and filter change for five bucks. These are real offers. Test your paper like this, and it'll prove you've got impact!
Next, if you ever hear the complaint "there are only three coupons in the cash register. It didn't work," then you don't have a results issue, you have a strategy issue.
Here's the solution. It's called "The Guaranteed Coupon," a three-step checklist that virtually always gets results and, most importantly, a return on investment for your advertiser.
Step One: Marketing Sense
Sometimes, in our enthusiasm, we plant too high an expectation. I once had a hardware store who, the day before their ads began running, casually mentioned the need for parking lot security to control the extra traffic. It wasn't a special event, either. Joe had oversold! Whoops! Let's not be afraid to talk expectations with them. For example, if I'm working with a hair salon, I'll ask "what percentage of the population get their hair done by a salon on an average day? Make sure their answer makes sense. 3% would mean that, in a given month, nearly 100% visit a salon. Not realistic.
Also, marketing and advertising go hand in hand. If they're running a valuable coupon, get the message up on their road sign, in the windows, and in other advertising too. It's not because the paper can't deliver, it's because smart marketers use everything at their disposal to put more dollars into the cash register! Help them with a complete campaign. They'll see you as the pro, and be far more satisfied with the campaign!
Step Two: Size and Frequency.
A one-time coupon has impact only with those in the market to buy that day. It's also got to create name awareness, breed familiarity and create the desire to switch. Pretty tall order for a one-time coupon!
Make the ad show up, and show up often. Vary coupon offers, but maintain a look or image to the ads themselves.
Step Three: Customer Value
This is a biggie. Ask "what is a customer worth to you" and "what do you do here to keep customers coming back?" It's their job, not the paper's, to keep those first-time customers coming back. Let's say a restaurant owner tells you their regular customers come in once a month. Their coupon ad brings in a new customer who spends $10 (with coupon). They find good value and has a welcoming, pleasurable experience. Once a month, that customer could be worth $20. That's $230 total. Not a bad return from just one little coupon! Make sure your advertisers understand this.
My wife, kids and I went to a new family restaurant. Minutes after placing our order, everything was ready, except a chicken sandwich my wife had ordered. "We'll bring it out in a moment." They did, and threw in a coupon for a free ice cream desert, just for the "inconvenience." This happened a year ago, and I'm STILL telling people about it. Pretty cheap advertising on their part, not to mention a satisfied more-than-satisfied customer giving them word-of-mouth promotion! Today, good service isn't enough. (MOST businesses do that!) Today, you've got to go above and beyond!
Some businesses treat "coupon customers' as second rate citizens "We lose money on them," they'll say. Then, don't run coupons, I say. Every customer (including coupon customers) should get Royal Treatment. Give them the discount, plus something more! And don't forget to invite them back.
The next time you sell an ad with a coupon, remember that what is ultimately being tested is your marketing ability.
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