|Companies that present their business as a brand and presents their service or products as “priced correctly because we can” is proven to bring more revenue in the long term. They don’t need extreme incentives because their customers come for the experience, form habits, build a relationship and recognize the ease and comfort of doing business with them.|
|Value brings people back. No matter what business you’re in, it’s imperative to help buyers see the value in their relationship with your company.|
|Incentives Backfire |
Pay attention to the feedback you’re getting and beware of “coupon chasers”. Do your coupon customers even return? Or do they return only with a coupon? Is your staff denying a coupon use because it expired? Pay attention to the communication said at the point of sale. Do customers mention your competitors’ coupons? Are subtle complaints being spoken? Ecommerce is showing that many customers submit offer codes online, and then dump the transaction, abandoning the cart. This highlights the big problem with coupon incentives to attract new customers. Most importantly, If your revenue model depends on sales and coupons to bring in business, buyers are not seeing the value in paying full price or the value of your business. Simply, you have trained your buyer to wait for an offer, and they will until you break the discount cycle. Discount marketing does not encourage customers to come back. Businesses that do so are pushing customers away. If you must offer a discount publicly to entice new business, don’t place an expiration date.
Sources: marketingsherpa.com, resturantowner.com, uniqodo.com, entrepreneur.com, bettermarketing.pub, joellynferguson.com, salesexcelleration.com, HIM.com