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Spring is in the air (at least for some of the readers of my monthly column). This also means that teams are taking the field, announcers are warming up their voices, and the crack of the baseball bat will soon be heard across our country. Well, this month, my column will discuss a fresh idea for the new season — coupon programs can really boost your top line.

There is little debate that coupons drive traffic. Making coupons readily available for products that are only in your store is a key to making them a part of a promotion that can really increase sales and positive word-of-mouth about what you offer. In our shopper traffic research, we found that customers who shopped with coupons spent 24 percent more than those shopping without them!

Shoppers who go to your store with a coupon know they are going to get a bargain on the item for which they have the coupon, and so there is room left in the mental “budget” to purchase other items at full-price. “I saved $2.00 on this particular product and so while I am here, paying full price for three other sense-stimulating items is more acceptable. Do I really want to leave with just this one item for which I had the coupon?” Many could say “no” and, within minutes, the retailer has sold four items (one at a discount) to the customer when zero may have been purchased by a shopper without a coupon. So, there is the potential for four items to be sold and sampled simultaneously.

In addition, I think coupon-cutters tend to be those who also shop with lists (contrary to what many have taught, written and presented, list shoppers spend more than those without shopping lists — this will be the topic of an upcoming column), and so they tend to be more organized about what they will purchase and when. The margin could still be in your favor if someone arrives at the store with one coupon, purchases four total items, and spends $36.53.

In other words, coupons are, in a sense, a nice way to not only drive traffic, but also an innovative way to encourage sampling. If a customer has yet to try a certain gourmet cheese but knows through experience that your store has wonderful cheeses, then that customer may be more apt to return and purchase this cheese using her coupon. Without the coupon connection between you and the customer, her return to the store may have taken several more weeks or months, and she may never have tried (and purchased) the cheese for which she had the coupon. This way, you are sampling while selling, and if the cheese for which the coupon was held tastes delicious to her, the customer will go out and tell six other people about the cheese and the coupon program.

So, try this on for size. Ask customers for their names and e-mail addresses, and make sure they check e-mails weekly. E-mail is a very low-cost way to connect with your customers. Then, once a week, promote a cheese, wine, wine accessory, chocolate, or some other type of indulgent treat by sending an attached coupon to them via e-mail. You may even link the attached coupon to your store’s Web site where demand for other products can be driven. This week, a coupon for your blue-brie mixed cheese is attached, and next week, it is a coupon for your famous mouthwatering chocolate truffles.

Two positive things could happen if you undertake such a promotional program. First, it may increase excitement and your ability to connect well with your customers. Many find that customers reply with questions about the promoted product or others in the store via e-mail. This effect leads to the second positive that could stem from this contact with customers — it drives traffic. Whether the traffic is on your computer, in your inbox, or walking in the store, more traffic and interest around products could lead to sales of the promoted good or accessory items in a completely different category. The bottom line is that you have their attention, they are interested, and they have made the trip to your store. Once in the store, they get to know you and your products better. Word-of-mouth is an inexpensive means of promotion, and you control a great degree of it. So, why not establish the personal touch that lets your customer know that you care about them and their interests. A weekly e-mail message stating, “Hey, we are here, we have another item that can be purchased with the coupon attached to this e-mail, forward this to others if you wish, but most importantly, come on in and try it!”

In my view, creative coupon promotion can be all about you. If the coupon is designed by you to be used only in your store, it is an innovative and exciting way to build demand for what you offer. April showers bring May flowers. April coupon programs may bring May sales that last throughout the year.

My shopper traffic research will unveil some quick and manageable tactics that could have a profound impact on your customer’s satisfaction and loyalty, and on your top line. For more information on how to purchase our traffic research or on how Harold and I can cater our traffic research to meet your specific needs, please e-mail me at Kenneth.Herbst@mason.wm.edu. Alternatively, feel free to visit my Web page at www.mason.wm.edu/Kenneth.Herbst. I can also be reached via phone at 757-345-1205. I look forward to speaking with you about the research in order to prepare a traffic study designed for your specific needs.

Dr. Kenneth C. Herbst is an Assistant Professor of Marketing in The Mason School of Business at The College of William and Mary in Williamsburg, Va. Dr. Herbst has a Masters and Ph.D. from The University of North Carolina at Chapel Hill. In addition, he earned a B.A. from Wake Forest University. He has been interviewed about his food research and industry expertise by, among others, The New York Times, The Wall Street Journal, The Philadelphia Inquirer, the Washington Post, the Chicago Tribune, the Ottawa Citizen, the Montreal Gazette, the San Francisco Chronicle, USA Today, and Woman’s Day.

Harold Lloyd was the President and CEO of a 14-unit retail organization for 10 years. His practical, exciting ideas and dynamic presentation style have combined to earn him a highly regarded reputation reflected in his top ratings at numerous appearances at such prestigious events as the Food Marketing Institute convention and the IDDBA convention.
For almost two decades, Harold has worked very closely with small and large businesses to provide a “powerful push in the right direction!” His mission is to provide qualified, executive-level assistance to companies on a “temporary basis,” eliminating the need to add permanent top management overhead. To further assist his clients, Harold authored the book It’s About Time, focusing on time management.