Companies that don’t currently use coupons typically stay away for one of two reasons. They either don’t understand how the coupon process works, or they’re afraid of developing a culture of discounting with their customers. While both of these reasons are very real, they’re ultimately pretty weak excuses for avoiding coupons. By understanding how coupons work and the value they add to your business, you can build successful coupon-based campaigns that increase conversions and drive sales.
A Behind the Scenes Look at the Coupon Redemption Process
Do you know how the coupon process works? While your initial response may be an automatic “yes,” do you actually understand it from start to finish? Don’t worry, you’re not alone. Most businesses and consumers are unclear of the coupon redemption process and how each part of the chain is affected. Clearing up this area of concern will give you a better understanding of what’s going on behind the scenes.
From the time the customer presents the coupon to the final reimbursement, here’s how the process works:
Sounds simple enough, doesn’t it? Well, that’s pretty much all there is to it. Sure, there are plenty of smaller steps along the way (including keeping detailed proof of purchase records), but you can break the entire process down into these four stages. Doing so allows you to better understand how coupon redemptions work and why these little slips of paper are so valuable.
How to Determine if Coupons are a Good Fit for You
Yet, even after getting a glimpse into the coupon redemption process, some companies still have questions regarding how they fit into their existing business model. If you fall into this category, mull over the following points and you should be able to reach a definitive conclusion regarding whether or not coupons are a good fit.
Tips for Avoiding Developing the Wrong Consumer Culture
Many businesses understand how coupons work, but are afraid of developing a consumer culture that depends on discounted prices. An example of a company that’s built a culture of discounting is Bed Bath & Beyond (though it doesn’t seem to have hurt the brand any). Rarely does anyone make a major purchase from the popular home goods store without using the company’s standard “20% off any single item” coupon. Customers have been conditioned to expect 20 percent off and won’t make purchases unless they get the discount.
While it’s arguably been an effective strategy for Bed Bath & Beyond, not every company wants to develop that sort of consumer culture. This begs the question: How can you use coupons without hurting your brand? Here are a few ideas:
Contact Mandlik& Rhodes Today
At Mandlik& Rhodes, we handle the entire coupon redemption process so you can focus your attention on increasing sales and growing your brand. With timely communication, clear payment reporting, and efficient processing, you’re able to receive the full value of your coupons each and every time you send them to our clearinghouse. And with a customer first attitude that doesn’t charge postage chargebacks, you don’t have to worry about hidden fees or extra expenses. For additional questions related to your coupon processing needs, please contact us today!