The Local Marketing Stack
Coupons & Deals
Zone 5 • Difficulty: • Sugg. D.I.Y. Monthly Budget: $150+
Small businesses are right to be leery of coupons and deals after the predatory sales tactics and unrealistic margins peddled by Groupon and other daily deal sites during the early ’10s.
The #1 reason consumers follow brands on social media
But consumers love receiving discounts (in fact, coupons and discounts are the #1 reason consumers follow brands on social media). And when they’re well-targeted using customer data and/or loyalty programs, coupons and deals can be real revenue-drivers for small businesses. They’re also effective when used in combination with a referral program, as we see with many widely-adopted consumer apps like Airbnb and Lyft.
Look at the total cost of your product or service, not just revenue
When calculating what level of discount to offer, think not only about your average product or service revenue, but the cost of goods (both hard costs and labor) to produce those products or services, as well as the likelihood that a customer who purchases from you using a discount will return with future business.