Customers love discounts, so utilizing coupons and loyalty programs are great ways to generate new business and bring back previous customers who may have wandered off in hunt of a better deal. But knowing when to use a coupon and when to use a loyalty program is important, as they have different sets of benefits.
What is the difference between a coupon and a loyalty program?
Coupons are discounts that you can offer customers as soon as they walk into your store. They can be physical or digital, but usually a coupon requires proof that the customer received the coupon in order to be used. A loyalty program also provides a discount or reward, but requires customers to visit more than once or spend a certain amount of money before they can receive that benefit.
Why coupons?
Coupons are great ways to entice new customers to give your business a chance. Often a coupon can have the stipulation of “first time customers only” to minimize your costs. Customers who may not have given your business a chance will see your coupon as a way to test your business without risking much. Coupons will help you get these first time visitors through the door.
Why loyalty programs?
Loyalty programs increase your chances of repeat business, and also reward your already loyal customers and help out your reputation. Having a loyalty program is also more cost effective. By ensuring that you only grant rewards (like discounts or freebies) when you have made enough profit to absorb the cost. If you have enough new customers, but no repeat visits, then loyalty programs help customer retention and lifetime value.
Coupons and loyalty programs are great ways to entice customers, new and old, to do business with you. By using Trending Now, you can get the right exposure for your marketing efforts to local communities. Contact us today and get a quote!