Every business owner knows that driving traffic to their store and/or website is a crucial component to the survival of the business. But driving traffic is just one part of the equation. The ability to convert traffic is every bit as crucial. As most retail and service business owners in the “real” world already know, a call to action such as coupons are a great way to tilt a buying decision in your favor. Coupons also shorten the sales cycle. It is no different with Internet coupons. Internet coupons are ideal because there is no cost for printing or mailing and they have the potential of reaching a much wider audience. The effectiveness of a coupon, however, depends on how well the coupon is executed. Here are some suggestions to help you build a better mouse-trap:

1. Coupons are not just for the retail or service industries. Sadly, there are many industries that do not use coupons to lure more customer/clients to their business. Coupons offering free initial consultations, reviews, hotlines with free information, free reports, etc. can make a huge difference to new client acquisition.

2. Focus on highest return. Marketing data suggests that the most effective coupons offer a fixed discount, such as $10 off a purchase of $50 or more. These coupons tend to have a better conversion rate for sellers whose average order totals less than $100. Alternatively, merchants with an average transaction size of more than $100 find that coupons offering a percentage discount, such as 10% off a purchase of $100 or more, often perform better. The important part is, test to see what works best for you.

3. Attract but don’t alienate. Many sellers offer coupons to the first-time buyer only, taking the chance of alienating their loyal customer base. Consider an offer for your loyal customers as well, i.e. first time buyers – take 15% off, repeat customers – take 10% off.

4. Keep it simple. Apply the offer to all orders or all product categories. If your coupon is limited to one product category only, you run the risk of not attracting a broad enough audience to visit your store. Don’t put exclusions, caveats or special circumstances on the coupon. If customers can’t figure out what the offer is, they are not going to use the coupon. However, do put some boundaries on the offer like “10% off purchases over $50.

5. Make it urgent. Set an expiration date to create a sense of urgency. This allows you to control the outstanding impact of the coupons you send out. Using an expiration date will create a deadline so you can remind your customers to hurry up and take advantage before time runs out.

At Video City Directories, you have the ability to feature a coupon with your video or slideshow listing. What’s more, the coupon can be changed frequently with just a phone call and for minimal cost. Improve your chances of getting more business by proactively announcing to the world what you have to offer. For more information, visit www.thevcd.com.

This article was written by Birgit Rickert of Results Marketing and The Video City Directories, and may not be copied, reproduced or altered without prior consent.