Coupon Mailers May Not Be the Best Bet

As a resident of an upscale metropolitan area I am a very regular recipient of various coupon "mailers".  These mailers either take the form of a booklet or an envelope containing any number of coupons or special offer cards.  The mailers here are almost all printed with very high quality paper and typically look professional.  Are they a good deal for small business?

On the plus side, people love deals, the coupons usually look attractive, and price points for the mailers are not typically prohibitive.

But there are concerns.  Mailers cater to an upscale audience but it is not subdivided any farther, and the distribution is over a wide area.  Hence it is difficult to align to a carefully defined target customer base.  I am very skeptical of "broad brush" advertising: a lot of money is expended to reach what is a small part of the mailer base, if one is that lucky.

Mailers are also necessarily of use only to business-to-consumer providers.  This is simply not an option for a business selling services to other businesses.

And, it is impossible to truly stand out in the pack.  One's message is lost among all of the other deals, all of which have the same format or card size.

Finally, there's ample data that mailers are one of the least-used advertising channels by the consumer.  Very few consumers distinguish mailers from "junk mail" and discard them.  In my zip code it seems that the mailers all arrive in the same day's mail, and that "junk mail" effect is likely amplified for the unengaged consumer.

Bottom Line: As with any advertising channel, mailers must be considered with care.  Ask the salesperson questions about entry cost, actual readership data,  and return on investment.  Be sure to determine how closely the mailer's base corresponds to your own target customers.  And compare to alternatives.  In the right cases, mailers work very well.

A Good Plan Comes Together For a Small Business

This morning a small business owner completed some work on our home.  I watched the process with keen interest---his marketing and branding process, especially.  What he did demonstrated the potential of couponing and brand support through reviews.

We hadn't heard of the business before an offer came care of Amazon Local.  We liked the look of the company after referencing reviews and their web site, and I liked the personal response on phone when I called.  So for him, the coupon delivered another actual customer.

After the inspection, he did suggest an up-sell which was persuasive and proved very satisfactory.  So for him, the risk of a straight redemption of the coupon yielded a doubling of its income potential.

He delivered the work as promised, explained every item on the invoice, and placed a business card and safety sticker next to the equipment control panel.  This provides daily Top of Mind Awareness of his business in the event we require future servicing, or in case something goes wrong.

And finally, the business owner asked me if I was pleased with his work and if we would write a review on Yelp and Google, and handed me a card with simple instructions on how to do that.  I thought this an appropriate and clever way to help support his brand.

All in all, this business owner did an excellent job finding a new customer, demonstrating and supporting is brand, and building his business with simple techniques and attention to small details.  This was a wonderful lesson for other small service businesses!

Discounting: Proceed With Caution

One of the most vexing decisions a small business faces is whether to inject discounting into its marketing plan.  Discounts and coupons can attract new customers, and who doesn't like to obtain something at a lower price?  Estimates are that nearly nine in ten shoppers use coupons. Unfortunately discounting can have a terrible downside.  Businesses that coupon generously can easily be locked into a discounting expectation.  Consumers learn quickly that they can wait for coupons and that a business is always "on a sale".  And even regulars can back off to cheaper products when they might well have paid the asking price.  Major retailers like JCPenney have learned to their horror that they have discounted themselves into a corner.

I wouldn't discourage a small business from offering coupons.  The tool is powerful.  What I would advise is to offer coupons carefully.  Do not offer deals frequently, nor on cyclic dates (such as every holiday or every June 1st, say)  Don't give prospects or customers a sense that they can wait for a lower price.  You may want to tie the coupon to a "buy one, get X" deal as opposed to offering a flat "X percent off."  Tie coupons to new products and services to inspire trying out the new offering, but beware overdoing it with existing lines.  Always think hard about the need to discount: is it done to make up for a marketing shortfall elsewhere?

Coupons can be your friend when used with care.