6 SMS Coupon Formats to Reel Subscribers In is the eighth in a series of articles that we'll be posting this fall. Small Business Marketing Tips To Build Sales In A Down Economy will teach you how to use do-it-yourself tools like SMS, email and social media to effectively market your business.
Entry By Jason Brick
Print coupons have been part of marketing for more than a century, benefiting national brands and local small businesses. But according to marketing research reported by RestaurantReport.com, SMS--short message service coupons--can be up to 10 times as effective as print coupons at a fraction of the price.
SMS coupons generate an immediate response when you create a call to action paired with a time limit -- the trouble is coming up with unique coupons week after week. One way to do it is by rotating several different coupon formats, sending them out in a pattern that produces new coupons.
1. BOGO
"Buy one, get one free" is a coupon classic that works just as well with modern marketing modalities. This can be a core value -- such as free entree with a purchased entree -- or a loss leader -- applying the deal to an ap petizer or similar small item. Offering a 50% off deal on any two items gives you two coupon formats for the same basic concept.
2. Progressive Discount
Offering 5% off for purchases over $30, but 10% off for purchases over $50 encourages your customers to buy more. Whether they stock up on staples, or splurge on dessert, the result is more profits for you.
3. Hidden Upsell
In restaurants, this often takes the form of a free beverage with purchase of a side order. The customer gets a deal, but your profits from the side exceed your cost for the freebie. Retail can accomplish the same with thematically similar items, like free socks with each new pair of shoes.
4. Website Coupon Codes
If you do a lot of Internet business, or want to start doing a lot, you can broadcast coupo n codes for customers to enter when buying through your web portal. These coupons can follow the formats of in-store coupons, or apply uniquely to internet commerce -- such as free shipping for orders above a threshold.
5. Daily Deal
Groupon and similar sites have turned this kind of deal into its own niche industry. You can use the same trend by offering a short-term deal your customers can't refuse. Make subscribers part of the "in crowd" by extending the offer for extra hours only for them, or with an even bigger discount for bringing in a friend.
6. Customer Choice
People like feeling involved and listened to. If you're having trouble deciding what kind of offer to make, hold a poll among your SMS subscribers. Not only will the winning team come in to enjoy their victory, but even the voters on the losing side will feel more attached to your business.
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