{"id":13452,"date":"2016-12-08T10:27:53","date_gmt":"2016-12-08T15:27:53","guid":{"rendered":"https:\/\/www.hostgator.com\/blog\/?p=13452"},"modified":"2016-12-08T10:27:53","modified_gmt":"2016-12-08T15:27:53","slug":"how-to-create-the-ultimate-holiday-coupons","status":"publish","type":"post","link":"https:\/\/www.hostgator.com\/blog\/how-to-create-the-ultimate-holiday-coupons\/","title":{"rendered":"How To Create The Ultimate Holiday Coupons"},"content":{"rendered":"

\"Creating<\/p>\n

Coupons may seem like a thing of the past-who sits down on Sunday to do their weekly clipping anymore, anyway?<\/p>\n

Well, as with everything in business, coupons have evolved.<\/span><\/p>\n

Now people are using online coupon codes or even going into the store with short discount codes that the cashier uses to deduct from the total at check out.<\/span><\/p>\n

Not only are coupons still valuable to and used regularly by consumers, but they can also increase revenue for retailers by up to 40 percent<\/strong>, according to a <\/span>2016 CouponBox survey<\/span><\/a>. \u00a0CouponBox also found that the surveyed retailers earned $29,435 per month on coupon sales alone<\/em>.<\/span><\/p>\n

[bctt tweet=”Coupons can increase revenue for retailers by up to 40%. #ecommerce” username=”hostgator”]<\/p>\n

The holidays are the best time<\/a> for your business to take advantage of this opportunity, when everyone is looking for a deal to save on the next present on their list. <\/span><\/p>\n

However, not all coupons are created equal. Just because you offer a discount of some sort, doesn\u2019t mean that you\u2019ll automatically drive sales. <\/span><\/p>\n

Here\u2019s what you need to know to create epic coupons that drive the sales you need this holiday season.<\/span><\/p>\n

\"HostGator<\/a><\/p>\n

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Do the Math<\/h2>\n

Before deciding on any coupon discount, you have to stop and do the math. You risk losing more money than is necessary if you don’t plan your discounts thoughtfully. The first step is to determine the regular profit margin of the product that you\u2019re discounting. A simple equation for that is:<\/span><\/p>\n

(Retail price Cost) \/ Retail price = profit margin<\/strong><\/span><\/em><\/p>\n

This profit margin<\/em> number is your baseline. Because coupons naturally cut into profits, you want to make sure you aren\u2019t selling items for too low a cost that splits your profits in half, or worse. <\/span><\/p>\n

Figure out how many more of the item you need to sell to break even, and put a plan in place to ensure that happens.<\/span><\/p>\n

[bctt tweet=”Discover your profit margin. The formula is simple: (Retail Price – Cost) \/ Retail Price” username=”hostgator”]<\/p>\n

 <\/p>\n

Don\u2019t Undervalue Your Business<\/h2>\n

When you want to get the most out of your coupons, it\u2019s easy to jump in with the biggest discount, but this can backfire quickly. Once a discount has been given, customers expect it every single time<\/strong>, which of course will not be the case. <\/span><\/p>\n

Instead of offering one large coupon, segment your current and potential customers and offer them a smaller, more exclusive discount: '20% off for returning customers'\u009d or '$50 off for new customers.'\u009d Continue varying the discount and audience you offer it to so you don’t train your customers to expect to pay little for your high-quality products every time. <\/span><\/p>\n

These lower-discounted coupons can be just as valuable if you create a sense of urgency<\/strong> as well. While that customer may not have planned to shop with you that day, a good deal is a good deal, and they may go out of their way to take advantage before it\u2019s over. <\/span><\/p>\n

In fact, 83 percent of shoppers admitted to making a purchase that wasn\u2019t planned because of a promotion, according to <\/span>Market Track<\/span><\/a>. This tactic puts you in the driver\u2019s seat, not your customers, while still encouraging sales and avoiding the danger of undervaluing your business.<\/span><\/p>\n

[bctt tweet=”Create urgency with your coupons. 83% of shoppers made\u00a0an unplanned purchase due to a promo.” username=”hostgator”]<\/p>\n

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Offer a Variety of Coupons<\/h2>\n

The holiday season is a long and busy one, so instead of offering one deep discount, spread your coupons out throughout the month of December. You can even do something fun like, '12 Days of Discounts'\u009d to help people remember. The benefit of this is two-fold:<\/span><\/p>\n