If a new customer came into your establishment ready to make a purchase, but they had a coupon for a competitor, would you accept it?
Before you answer, consider the following facts:
- Chances of getting a sale from a new customer are between 5 and 20%
- Actual sales from promotions sent to new customers are fewer than 1%
Loyal customers are less price-sensitive. New customers, however, will buy based on price, so a “no” to the posed coupon question may be more costly than you think.
If you price-match competitors, then accepting a competitor’s coupon is the same thing. Make the customer experience more valuable for your customers and consider accepting anyone’s coupons (expired or not).
Read more surprising facts about customer loyalty.