Coupon codes, promo codes, and rebates are some of the best marketing tactics for gaining new customers. Some companies like Bed Bath and Beyond have the margin built in so they can offer up 20% off coupons and still make a profit. Other times it will be a rebate but the rebate comes from the manufacture. Rebates serve three purposes of
- giving incentive to the customer to make a purchase
- allowing the storefront or distributor to make their full margin
- capturing the name and information of your buyers
Think about it. Most manufacturers have no idea who the end buyer of their product is. Tide detergent sells to Walmart and Walmart sells the detergent and perhaps the data is captured if the customer uses a credit card or loyalty card of some sort for purchase. If they use cash, the name is gone. Without buyer information the seller doesn't get the full value of the transaction. Amazon knows all of its customers and knows all of its buying habits. It becomes impossible to compete with this technology. If a brand can start selling direct with the aid of customer data compiled over years, they will be much better off. That rebate data is key.
The next way to grab customer data during a purchase is to use coupons. Ideally, each coupon will have a unique code linked to the email or address of a particular buyer. When the coupon is redeemed, the store can match up the coupon data to the purchase data. For instance, if the coupon is used for formula and diapers, it is a pretty safe bet the household has young children. That data can be used to market baby product to the household address or email address linked to that coupon purchase.
The last way to offer a discount that we will discuss is promo codes. You will often see a promo code on the top of a web page advertising 15% off and having a limited time to get the discount. There are also websites that claim to have promocodes and coupon codes. If this article gets picked up properly, you are hopefully reading this on a syndicated coupon site. I am not a big fan of promo codes. I don't like having an option for them when I check out. I always think that I could be getting a better deal if I just did a little more work.
Richardson Seating is a 45 year old furniture manufacturer specializing in restaurant furniture and promotional furniture. We are members of PPAI, ASI, and SAGE. Our custom logo bar stools are used throughout the world at parts counters everywhere.