NEWS & EVENTS

couponing vs customer loyalty

Couponing can be challenging for small business

By Welcomemat Team, January 30, 2017.


All of us at Welcomemat believe couponing can be challenging for small business because it kills the concept of customer loyalty and, instead, spoils a customer by pushing him to choose businesses solely by the value of their coupons.

Say a local business used a couponing service to get new customers through their door. The owner did great and is happy. But as soon as he stops couponing, those new customers who came in through couponing will stop coming. These are not the kind of customers you want.

We call it the coupon illusion.

Instead, consider sending a free gift or complimentary service from your business when you welcome new movers to the neighborhood with Welcomemat. By doing this, you create a strong bond with the customer before they even walk into your store.

See why new movers are so important for your local business.

In other words, this creates a sincere relationship in which the consumer is willing to pay full price for the service or product provided. It can also have an amazing effect on customer loyalty because it creates a sense of obligation or reciprocation from the gift recipient, leading to long-term customers.

There are various benefits of taking this approach instead of discount couponing.

  1. Every month you are reaching out to new families—new sets of customers. With a purpose.

Giving them a no strings attached, free welcome gift not only enhances their customer experience but will also give you a chance to make a positive first impression. That is a strong message and, by offering that message, you create a new word-of-mouth opportunity to grow your local business.

  1. You are not giving a discount or a price cut offer.

But you are welcoming them to the neighborhood by offering them a free, celebratory “welcome” gift. This will go a long way in encouraging repeat visits and increasing customer loyalty.

  1. You are capturing their interest based purely on customer goodwill and experience rather than a superficial discount.

Now, if you serve them right, you have already converted them into a lifetime fan and encouraged customer loyalty.

Do the math. Say we welcomed 100 new families on your behalf and sent them right to your business after they moved and are new to the area. Even if only 10% of them become your fans and loyal customers, can you imagine what those additional purchases could mean for your small business?

Reach out to one of your local Welcomemat representatives to gain more insights into your neighborhood and learn how you can capitalize on new mover marketing to increase customer loyalty.