Create A Win Win Situation For Your Startup By Using Coupons
Giving out coupons to your potential, current, or future clients is the best way to retain and draw in new customers. I don’t mean randomly walking up to someone and saying, “Here’s a coupon, try it!”. That might work, but there are better strategies for it. No matter what strategy you are implementing for your startup, you have to ensure that it is always a win win situation for your startup and your customers.
Strategy 1: Make It Happen!
The first way that almost always works is by approaching people who are already interested in your product. There are a lot of analytical tools out there that can help you track this on your website. For example if you run a ecommerce startup and someone goes to your site, adds an item to cart, and registers but does not check out, send them a reminder in a few days if they don’t revisit. Customer service here is important but what is even more important is the value they can pull out of it. For example a few days later you might want to follow up and say, “Hey xyz, I saw that you were interested in xyz product, we are having an offer for 15% off, here is the coupon code.” Write something along the lines of that, but make sure you include a coupon. The reason why this works is because this customer already shows interest in your product, so most of the time if you set it up correctly they will use the coupon. That creates a win win situation for your startup/business and the customer.
Strategy 2: Hit The Problems!
Another strategy to create a win win situation with coupons is using problems to your advantage. When a customer inquires about a product, kindly answer their questions then tell them about a promotion your doing and then attach a coupon! It’s as simple as that, but you can tweak it up a little bit. For example, you could tell them the coupon is for a free shipping coupon for orders above $50. If the customer is purchasing a 40 dollar item, they might purchase 10$ more merchandise just to use that free coupon. Again, that creates a win win situation for both of you guys. If you’re a SaaS based startup, then you must give out coupons. You do not have to worry so much about inventory cost like ecommerce or product startups do. If a potential customer is inquiring about a “pro” or “plus” plan, then this strategy will be extremely useful. Make a dollar out of 50 cent while keeping customers happy for referrals and future feedbacks is the key to success in any startup.
Strategy 3: Three People – Win Win Situation
If you are creating a win win situation between your business and your client, you might as well get a third person involved. This third person could be a friend of your current customer. Kindly follow up with your customers thanking their purchase, at the same time let them know that if he/she refers a friend, they could both get 25% off for one month (if it is saas based), or 25% off for future purchases. This is a solid win win situation because not only are you keep a customer happy, but at the same time the customer is spreading the word for you. The customer is bringing in new clients for you. It’s a viral way of getting free sales and marketing. Some people like to think of this strategy as a more in house affiliate marketing strategy. I don’t think this is a full affiliate strategy, but it could optimized to be one. Startups such as Team Tree House have been using a similar version of this coupon strategy. Team Tree House’s affiliate model
Strategy 4: Brand Awareness
You can use coupons as a way to increase brand awareness. It is much easier to approach a niche group, forum, community, or gathering with a valued offer than to approach them with a dry introduction. For example if you were targeting local small business for your marketing software, you might want to offer the entire Small Business union a coupon during a gathering instead of just approaching people and telling them that you are running a marketing software company. Gifting is always an excellent way to obtain new customers.
Your startup should never take any customer or potential customer for granted. Even if you have 5000 active users, you should still provide excellent customer support for future growth. If the numbers get out of hand, then it’s time to invest in a customer service manager that will continue to grow.
One thing to note is that you should be very careful about the pricing of your coupons. For example, you might be thinking about making a killer win win situation coupon by offering 50% off on all products. You have to ensure that your profit can cover the cost of goods sold and all the other expenses including overheads or else you will run into trouble and run out of business.
One last tip is that you should maximize your copyrighting skills when it comes to creating products. For instance, if your product is an expensive product, then saying $50 dollars off is better than saying 5% off. At the end of the day it is more attracting to the buyers. If your product is a low cost product then saying 10% off might be better than saying 5$ off. Be creative and hopes this help all the startups and entrepreneurs out there!