Marketing your Restaurant with Coupons

Updated September 23rd 2013

Couponing has become a worldwide success and online companies like Groupon count among the biggest companies present today. Here are some points on how to take advantage of Couponing and what to watch out for.  Coupons offer an opportunity to purchase a product or service at a lower price. It may be a considerable practice to:

1. Promote your business or a new product or service
2. Improve your immediate cash flow if the coupon program allows
3. Attract a different customer segment

 

Make sure to watch out for the following:

1. Depending on your restaurant concept make sure you consider the consequences of a coupon based promotion. Fast food or low cost establishments have a safer position as they tend to attract a clientele that is focused on spending less money. But coupon marketing can also be applied by formal or upscale restaurants, it might look cheap and be hurt by following PR and media reports. Coupons allow other market segments to enjoy an offering that maybe regulars are not fond off. Even though nobody will mention it, their reaction might be to distance themselves from the establishment and decide not to frequent it.
2. If you get involved into a coupon marketing promotion make sure that the coupon is worth having. Discounts of 10% to 20% are not a real hit and do not really look like a promotion but more like a friendly gesture. Make it a no brainer and offer it for a popular product or service, something you are known for. Ideally you should create such coupon marketing activities 3 to 4 times to enable you to see the effect.
3. It is worthwhile planning ahead with a good calculation to have a pricing policy that allows you to offer coupons without actually losing money.  Highly profitable and popular items are the best to offer as you mainly achieve an exponential interest in the product. Just make sure that you do not lose clients because they are consistently taking advantage of your coupon offer and therefore do not have a reason to visit your venue on regular days.
4. Use efficient distribution channels and within today’s society, the most highly recommended is obviously the internet. Online coupon companies are well organized and simplify the entire setup and distribution. In addition with the right social media tools you can influence by going viral with a good offer. No tool in the past allowed you to forward interesting information so easily to others.
5. Make sure you track your results. Not only what is your monetary ROI but with the right social media monitoring tools you can find out how popular the subject became and was discussed among friends and fans. This new era where even word-to-mouth marketing can be measured is in its beginning.

 

Written by Daniel Grossmann