GREAT 106 IDEA: Use Coupons to Attract Customers

One balmy summer evening, I took myself on a date to the local movie theater. A young man wearing a Häagen-Dazs apron was passing out coupons offering a “double feature”—a free scoop of ice cream when you bought one scoop at the regular price.

As soon as the movie ended, I trotted down the block, ticket stub in hand. For under $2, I savored my calorie-laden pralines-and-cream and coffee-chip double scoop. The kid in the apron even let me keep the coupon for a repeat performance. Talk about generating goodwill!

That free extra scoop of ice cream brought me into the store for the first time. And, of course, it wasn't the last. It also proved to me that a coupon is a low-cost way to attract new and repeat customers.

Coupons are great because they are cheap to print and easy to distribute. You can print them yourself or buy space in a value package. You can pay to have coupons stuffed into the local newspaper.

Before printing anything, add codes to track response. For example, put an “N” if they were stuffed in a newspaper, “M” if they were mailed, or “W” for a downloadable Web coupon.

Don't forget to check out the new social marketing discount platforms, including Groupon and LiveSocial. Just be sure to crunch the numbers so you will make and not lose money on the deal. I've spoken with many small business owners who have had less-than-positive experiences with the concept, especially when long-standing customers don't participate in the deal. You don't want to alienate your loyal customers for a one-time hit.

No matter what you do, dream up a compelling offer. Anything “free” works if you have some sort of retail operation. It doesn't matter what you offer as long as it has a high perceived value. Think of all the makeup samples and bags you've collected through the years just because it was free with a purchase.