Sure, a lot of it has to do with the price. Does your company constantly have sales? If so, we as deal hunters are more likely to come back. But that’s not all it’s about. We want to get what we pay for, and so do people without coupons or vouchers.
If your merchandise in general is over priced to the point that people will only shop there when there’s a discount, then maybe you need to rethink more than just how you run promotions.
Is it the product quality? Is the selection or offer very limited? Certainly an issue. If your products don’t hold up or do as expected, it’s a deal breaker. Maybe it’s to protect profit margins. Maybe to unload overstock. To the consumer it can appear as a ploy if it’s not for something you are known for. If you are known for high quality chocolate and when I get there the deal is on the cheapest stuff in the store, then I know you offered it just to push an upsell.
Treat the offer as if it’s a commercial for your business, because it is a very accurate reflection of what you have to offer a customer.
Customer service is important. I can’t even count how many times I’ve used a voucher from a group deal site and been treated horribly, ignored or simply put up with at the business because I have a voucher. At two of the places I had been a customer in the past and was excited to get the deal only to be treated very differently when scheduling an appointment or shopping with the voucher. Not only did those companies lose future sales, the word of mouth to my friends probably hurt them more. You probably ran the deal to gain new customers. Treating them as anything other than a full price paying customer will most likely assure you will never see them again.
When you “fit” me into the schedule for a pedicure with someone who tells me they’ve “just finished their training” because I mention the voucher and she proceeds to draw blood when clipping my toenails….you tell me if I’m ever coming back.
And yes, as a business owner, profit margins need to be paid attention to. Limiting offers helps that. You can put a pretty solid number on you books when figuring the cost of your advertising this way. I understand that unlimited numbers of vouchers can quickly add up when your deal does better than you expect and you are on the hook to fulfill these offers at your expense, that’s why you need to think ahead before signing the contract.
It’s your responsibility as the business owner to keep that in mind, not mine as the consumer to know your financials. Complaining to me that my purchase of the deal you offered has “hurt” you…well you just did even more damage to yourself.
The bottom line.
- Discounts: Make them reasonable for your business, but also fair to the customer. Don’t count on them for revenue, calculate your cost as an advertising expense.
- Deal Breakers: Don’t bait and switch. Represent yourself accurately.
- Service After the “Sale”: Treat all customers as if you value them to gain future sales.
As deal hunters, we aren’t out to hurt your business. We are just trying to save money where we can for our own reasons.