COUPON CAMPAIGNS
PROFIT KILLING COUPON CAMPAIGNS
Traditional Marketing Method Fails to Yield Value
Ad agencies and marketers focused on building their own business rather than their client’s, frequently advise one of the simplest ways to increase sales and continue building the company brand is through the use of coupons at the point of sale.
Among the “Great” techniques being employed is receipt messaging. Fancy logos, discounts on products and surveys with the potential to win big money are everywhere. The idea is customers will be so impressed with print quality they will hang on to the paper scrap for many days, thus absorbing the catchy business message.
Really?
“People assume there is something wrong with businesses that are constantly sending out coupons,” said Tabitha Coffey during a recent episode of Tabatha’s Salon Takeover on Bravo TV. She continued by pointing out you are ultimately only cultivating discount buyers, unwilling to pay full price.
As she shredded and pressed the coupon campaign remnants between glass, I couldn’t help but think how relevant and brilliant her simple business advice was.
In the early 2000’s, McDonald’s rolled out a typical coupon type deal and began selling their famous Big Mac for 99-cents, more than half off the $2.30 sandwich. The cut not only sparked a discounting war among the major fast-food chains, It also created a consumer unwilling to pay more than a buck for the special sauce legend. To resolve the Big Mac consumer price point crisis, the 20-item value menu was launched. Other competitors have followed suit and the great money drain continues today.
Thank you Mickey D’s, for the industry killing coupon deal. Your customers love you for it. At least until Wendy’s, Taco Bell or Burger King can rally with an even greater profit cutting deal.
Does this mean coupons have no marketing value?
The answer to that depends on whether you own the business or you are the customer. Rather than get into a lengthy explanation, allow me to put it this way…
The following websites pulled coupon-cutting into the 21st century offering free printable manufacturers grocery coupons: Coupons.com, RedPlum.com, Valpak.com, SmartSource.com.
If you visited these sites thinking to yourself, “What a resource. I’ve got to bookmark these and save a few bucks.” Then you’re a smart consumer.
If you offer one of these types of deals, thank you. You just gave away some more of your profit margin to another cheap, fickle, uncommitted consumer.
