Coupon usage has been steadily increasing over the past few years, mostly thanks to the poor economy.  There was a time that coupons were predicted to disappear due to lagging newspaper sales, but according to the 2012 NCH Coupon Facts, these offers actually increased by 26% last year over 2007 figures, with 3.5 billion redeemed in 2011. They even have their own reality show, Extreme Couponing.

Of course coupons today are not all the kind that are found in the Sunday newspaper supplements.  One couponing web site claims that over 90 million Internet users will redeem online coupons this year, and e-mail marketing has increased the number that are sent directly to consumers via this medium.

The amount of money saved by coupon users decreases a retailer’s profit margin, so the increase in this type of promotion is not all good news for us as small business owners. And for some shops, coupons are not compatible with their high-class brand image.  But coupons do bring shoppers into the store, and their current popularity with customers cannot be ignored by most specialty retailers.

We use coupons in our shop in a couple of different ways.  We participate in the Bucky Book, a local annual shopping and restaurant coupon book.  For years we have offered a free wooden spoon to those who bring in a Bucky Book coupon — some customers must have a dozen of them by now — and since participating in the book is free to businesses, we are only out the cost of the spoons.  Happily some shoppers do browse and even make purchases after stopping in because of this promotion.

Our spring and fall flyers each feature three coupons on the back cover, each one good for a month (but not December).  The offer is $10 off on a $50 or more purchase, excluding low-margin items such as electrics.  Many shoppers make a point of adding to their purchase to get to the $50 level.

When we participate in a wedding show or other off-site promotion, we provide a coupon to bring shoppers into the store within a  few days of the event.   Although we know that customers prefer an offer of a certain dollar amount rather than a discount, these offers are usually for 10% off.

Our permission-based e-mail newsletters will occasionally feature a coupon, either for discount or a free item.  Receiving these offers is one of the advantages that we mention when customers agree to join our list.

It is also possible to offer coupons in your social media, such as Facebook, or on your web site. Keep in mind that these coupons can be replicated in an infinite quantity, so don’t offer more than you can afford.  Proof your coupons carefully to make sure that they feature the correct details of the offer, your store name and address and an expiration date.

One of the great advantages of coupons is that they are easy to track.  Write the date and amount spent on every coupon that comes back into your store. You will have an accurate and complete record of how successful you have been with this hot promotional vehicle.

Happy Retailing,

Carol “Orange” Schroeder