@OyihomaS wrote:
As the Black Friday season approaches, or as Konga has infamously termed it, “Yakata Day,” many retailers might be looking at how they can get in on the action and take advantage of this shopping frenzy. Being a period where shoppers are after the best deals you are probably thinking of offering coupons. Coupons continue to be a cornerstone of retailer marketing strategies for companies of all sizes. These purchase incentives are capable of driving customer acquisition and capturing customer loyalty when implemented tactically. However, there are some key underlying principles to always consider when thinking about offering your customers coupons.
Can you afford it?
Never simply offer a coupon because “it feels right” or because you see a competitor offering the same thing. It is crucial that you always take a hard look at your margins and determine what you can afford to offer. Consider whether you have enough money coming in from other product lines or time periods to counter the cost of offering a coupon. A strategy retailers use is offering a coupon only once a certain amount is reached. For example 15% off a purchase of N5,000 or more. This is a way to ensure you don’t go into the red by offering these incentives.
Is the offer right for your brand?
Placing a lot of thought into your overall brand strategy before you determine what sort of coupon to offer is very important. You should consider where you want to position your brand and this will help you determine the type and frequency of offers that will benefit you the most. If you are aiming to position your brand in the higher end of the market you might consider offering coupons that reward loyalty as opposed to daily discounts.
Can you meet demand?
Nothing will hurt your brand more than to over promise and under deliver, ask Jumia
about their Black Friday experience. When it comes to saving money on a purchase shoppers tend not to hesitate, so be sure you are capable of meeting their expectations. You can do this by ensuring that you have the inventory and logistics in place to fulfil your orders. A good rule is to try and estimate potential demand by considering the level of exposure your promotion might get. Although you will never be accurate it does leave you less vulnerable to unexpected events.There is surely a lot more to consider, such as how customers might discover these coupons – a challenge KosavaDeals.com is working on addressing. Nevertheless, these issues should always be discussed in order to take full advantage of the benefits this marketing tool can provide.
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