Coupons haven't caught the trend in Lebanon; while discount cards have started to abound. Could it be a question of maintaining the brand image? I believe so. Yet, for argument's sake, and in regard of sales, here's why I find coupons to be more efficient:
- Limited validity: While discount cards tend to rely on customers' loyalty, coupons offer a 'limited' opportunity; which translates into a call to action.
- Value: Having a coupon in your wallet almost feels like having money redeemable at a particular store or for a particular product; it almost feels like cash.
- Percentage vs dollars: Being able to tailor the message to emphasize a dollar amount rather than a discount percentage appears more rewarding for the consumer. Unless of course the percentage is 70% or more.
Now when it comes to loyalty cards, I always prefer those where you get a stamp every time you purchase, as opposed to the ones where you gather points. It's just more graphic and you really 'see' what you gained. Kind of like a badge on a social network. It feels good.
Moreover, if you're getting your clients to gather points in your loyalty program, you might want to actually reward them for their effort; and not just give them a ticket for a draw (tsk tsk Roadster Diner). Few are those who would go out of their way to gather points for the 'chance' to win. Had the program emphasized smaller prizes with a 'certainty' rather than 'risk' level, it would have gotten even more participants on board.
Nonetheless, it's always good to keep track of your clients and get all the details you can on their purchases and profile. It helps better cater to your 'right' market, and reshape your firm if the need arises.
