Small businesses often have limited resources to attract and retain customers. Offering deals, promotions, and coupons can be an effective way for small businesses to drive sales, increase customer loyalty, and compete with larger competitors. Here are a few reasons why:
- Attract new customers: Deals and promotions can entice new customers to try a small business’s products or services. Offering discounts or freebies can be a powerful incentive for people to give a business a chance.
- Encourage repeat business: By offering deals and coupons to existing customers, small businesses can encourage them to return and make additional purchases. This can help build customer loyalty and increase lifetime customer value.
- Increase sales during slow periods: Small businesses may experience slower periods where sales decline. By offering deals and promotions during these times, they can stimulate sales and keep their cash flow steady.
- Compete with larger businesses: Small businesses often face stiff competition from larger companies with bigger marketing budgets. Offering deals and promotions can help level the playing field and attract customers away from bigger competitors.
Knowing why it is important for small businesses to offer deals, promos and coupons is one thing, but knowing which type of deal (or a combination) to offer can be harder to determine. There is no one-size-fits-all answer to this question, as the best offers for customers can vary depending on a number of factors, including their individual needs, preferences, and budget. However, some popular types of offers that customers tend to appreciate include:
- Discounts: Customers love a good deal, so offering a discount on a product or service can be an effective way to attract and retain customers.
- Freebies: Offering a free product or service can be an effective way to persuade customers to try something new and can also help build loyalty over time.
- Bundles: Bundling several products or services together at a discounted price can be a great way to increase sales, introduce customers to new products and provide added value to customers.
- Loyalty programs: Rewarding customers for their repeat business with discounts, freebies, and other special offers can help build strong, long-lasting relationships.
- Limited-time offers: Creating a sense of urgency with limited-time offers can help drive sales and encourage customers to take action quickly.
- First-time customer discounts: Offer a discount or special deal to first-time customers to encourage them to try your products or services.
- Referral discounts: Reward customers who refer new business to you with a discount on their next purchase.
- Holiday promotions: Offer seasonal promotions or deals to coincide with holidays or special events.
- Birthday or anniversary programs: Offer a free product or service to customers on their birthday or anniversary.
- Social media promotions: Use social media to offer exclusive deals or promotions to your followers.
- Charitable donations: Offer to donate a portion of your sales to a charitable cause or organization.
Ultimately, the best offers for customers will depend on your specific business and customer base, so it’s important to do your research and experiment with different types of offers to see what works best.
Offering deals and discounts can often encourage customers to make more purchases, particularly if the deal provides a significant savings or added value. Customers are often motivated by the opportunity to save money or get more value for their purchase, so offering deals can be a strong incentive to make a purchase.
Research has shown that offering deals can increase sales and revenue for businesses, particularly during promotions or sales events. However, it’s important to note that simply offering a deal does not guarantee increased sales. The deal must be relevant, appealing, and communicated effectively to the target audience. If you are a small business owner and want to jump into the world of offering local deals Directwest can help. We have an easy to use product, Local Deals, that will get your offers in front of current and potential customers. The other exciting aspect of this product is that your deals will appear on two platforms, widely used and Saskatchewan focused Mysask411 and GetintheLoop a Canada-wide digital community. Reach out today and talk to one of our knowledgeable Media Advisors about all the benefits of Local Deals!
-Sarah Elchuk is a Product Consultant on the Brand and Digital Platforms Team at Directwest.