Promotion
Good Promotional Tool
Jan/19/2009 09:26 Filed in: Marketing
for the Small Retailer
A Good Promotional Tool
Here’s a good tool that has produced good results for our client’s. It’s simple and easy to use. It’s designed to get the customer to return to the store quickly and more frequently. Here’s how it works – it starts after a customer makes a purchase.
Let’s say a customer makes a total purchase today for $200 and it is made up of several items. You, the store, gives the customer a coupon for 10% or 20% of the purchase that they just made. That coupon must be used within 10 days.
So the customer that just spent $200 dollars gets a $20 or $40 gift card. The card can’t be used the day of the original purchase but has to be used in the next ten days. Very few people will throw away $20 worth of FREE merchandise so they figure a way to get back into the store.
The customer has a very good reason to come back. The rate of return on these coupons is almost 70%. That’s a bunch of people that wouldn’t of come back at all.
I know, many of you are saying that this is no big deal, all you’re doing is giving away 20% and you know that they will only come in and spent the $20 and leave.
Well really what happens is – that customer is really getting a much smaller discount than you think. The % off is spread between two purchases, not one.
But that’s not really the important point. Although the customer who comes back in only plans to spent the $20 gift card, 93% of those customers will exceed that amount.
Which % discount should you give? It should be whatever the amount that is enough to get the customer back in the store in 10 days. Some stores have used a sliding scale. 20% under $100 and 10% or 15% over $100, it needs to be enough to motivate them to come back.
If you are having trouble increasing or maintaining your customer traffic in this tough economy, try it. There are a lot of ways to modify it to make it work for your store, but the whole idea is to get that customer back in to sell them more.
Here’s a good tool that has produced good results for our client’s. It’s simple and easy to use. It’s designed to get the customer to return to the store quickly and more frequently. Here’s how it works – it starts after a customer makes a purchase.
Let’s say a customer makes a total purchase today for $200 and it is made up of several items. You, the store, gives the customer a coupon for 10% or 20% of the purchase that they just made. That coupon must be used within 10 days.
So the customer that just spent $200 dollars gets a $20 or $40 gift card. The card can’t be used the day of the original purchase but has to be used in the next ten days. Very few people will throw away $20 worth of FREE merchandise so they figure a way to get back into the store.
The customer has a very good reason to come back. The rate of return on these coupons is almost 70%. That’s a bunch of people that wouldn’t of come back at all.
I know, many of you are saying that this is no big deal, all you’re doing is giving away 20% and you know that they will only come in and spent the $20 and leave.
Well really what happens is – that customer is really getting a much smaller discount than you think. The % off is spread between two purchases, not one.
But that’s not really the important point. Although the customer who comes back in only plans to spent the $20 gift card, 93% of those customers will exceed that amount.
Which % discount should you give? It should be whatever the amount that is enough to get the customer back in the store in 10 days. Some stores have used a sliding scale. 20% under $100 and 10% or 15% over $100, it needs to be enough to motivate them to come back.
If you are having trouble increasing or maintaining your customer traffic in this tough economy, try it. There are a lot of ways to modify it to make it work for your store, but the whole idea is to get that customer back in to sell them more.