We’ve embarked on a new series specifically for pizzeria owners, which is aimed at helping you create a solid and effective pizza coupon marketing strategy. Why? Because coupons, deals, and discounts WORK, especially in the restaurant industry. Our last article highlighted the many reasons why these promotions are effective. Today we’ll dive into the practical aspects of using restaurant coupons and deals to grow customers and sales.
Although pizza coupons and deals are some of the simplest marketing promotions to run, it’s important to go into it strategically because, believe it or not, offering coupons can backfire. In this article, we’ll discuss some of the cons of using coupons so you understand the downsides, then share 8 best practices to use when creating a pizza coupon marketing strategy.
Downsides of Using Restaurant Coupons
In our first article, we discussed the advantages of using restaurant coupons. However, as you plan out your coupon marketing strategy, it’s important to have a balanced view. Some of the potential drawbacks of using restaurant coupons include the following:
- Less Profit: Offering $1 off a pizza means $1 less profit. That’s easy enough to understand, but have you considered the implications on a larger scale? If the number of coupons redeemed is huge, you could experience a major dip in profit that you weren’t expecting.
- Smaller Tips: Restaurant coupons will lower the customer’s check total, which could mean smaller tips for your staff.
- One and Done: The point of coupons is to encourage repeat business. However, if you offer too great a discount, you may get people who slip in only for the deal and are unwilling to pay your regular price.
- Management Issues: As coupons circulate on the internet, it can be hard to regulate how many and what coupons are out there. You may also have customers who take advantage of loopholes in the terms and conditions.
- Expectations: Over time, coupons and deals may become associated with your brand so that customers may expect them, and it may impact the perceived value of your food. In a worst-case scenario, customers may even hold off making a purchase (or choose a competitor) until you offer more coupons.
These are some of the potential downsides to using restaurant coupons. Knowing them is important, but they shouldn’t stop you from running coupon and discount promotions. You can avoid these pitfalls by carefully crafting your strategy. We’ll share tips on doing that below.
8 Best Practices for Your Pizza Coupon Marketing Strategy
Devising a well-thought-out pizza coupon marketing strategy will help you use coupons, discounts, and deals as a win-win for you and your customers. Customers will appreciate the extra savings; meanwhile, you will sell more pizzas and increase your customer base. Before sharing your next coupon, take a minute to evaluate your strategy with these best practices in mind.
1. Start with a Goal
Coupon marketing is no different than any other form of marketing—you must start with a goal! So think about why you’re offering the coupon or deal. Is it to:
- Increase pizza sales
- Draw in new customers
- Reward loyalty
- Encourage additional purchases
- Promote a new item
- Sell more gift cards
By determining your goal upfront, you’ll be able to create a deal that helps you achieve that goal (and figure out how to measure its effectiveness too).
2. Know Your Numbers
With your goal in mind, you’ll want to create a compelling offer for customers that will drive them into your pizzeria. But you’ll need to know your numbers to make an irresistible offer that doesn’t break the bank. Start by looking at the base cost of the item you are considering discounting and the current profit margin. If you offered a coupon for this item, how much would you like to earn for it to still be a profitable sale?
3. Choose the Type of Pizza Coupon or Deal
When considering your coupon marketing strategy, you should choose a discount that matches your goal and entices your customers. For example, if your goal is to increase sales of your side items, an item for $X off a side when you buy a pizza would be ideal. Or, if your goal is to encourage repeat business, you may include a coupon via a loyalty program.
Buy one get one, a percentage off, a combo deal…there are many different types of coupons and discounts you can offer your customers. So many that we’re going to be covering this topic in our next article! Check back later because we have plenty more to say on this topic.
4. Choose the Format
Will you offer a print coupon, a digital coupon, or both? Or will it be a store-wide pizza deal with no coupon required? These are good questions to consider as you devise your coupon marketing strategy and select what makes the most sense for your needs and goals.
Digital coupon usage is high and continues to grow. In fact, research shows that restaurant and delivery coupons are the second most researched online coupon category! That said, experts say printable coupons are still a viable option, especially those found in newspaper inserts or attached to products (like your pizza box topper). Just remember that paper coupons will require an extra cost for printing, so make sure to figure that into the profit loss you calculated in tip #2.
5. Be Clear About the Terms
Loopholes in your coupons can lead to extra profit loss for your pizza business, so you must be clear about the terms.
Arguably one of the most important is the expiration date. By clearly indicating the coupon’s expiration date, you’ll create a sense of urgency and ensure that the coupon does not cut into profit beyond the intended window.
You’ll also want to consider if there is a limit to the number of times a coupon can be used and if there are any restrictions (for example, if it cannot be used in conjunction with other deals).
6. Decide Where to Market
Another essential element of your pizza coupon marketing strategy is deciding where to share and market your coupons. Your format (paper or digital) will greatly impact your decision.
You can distribute paper coupons as inserts in the local newspaper, direct mail to customers on your list, or pizza box toppers. Meanwhile, you can distribute digital coupons via email, social media, and your business website. Research shows that 71 percent of coupon users go directly to the store website to get digital coupons, so offering coupons can help increase website traffic.
7. Personalize When Possible
Personalization is an excellent addition to your pizza coupon marketing strategy. With the help of technology, you can turn your customer data into insights and share coupons directly relevant to each customer. Whether a coupon for their birthday or a deal based on their order history, personalized coupons are a great way to get customers to return.
8. Measure Your Results
A final element of a good pizza coupon marketing strategy – and frankly, one that is often missed – is to measure the results at the end of your campaign. Whether it’s a coupon or a limited-time deal, you’ll want to know the results so you can replicate what worked well and improve what didn’t. You can use your POS system to keep track of the number of coupons redeemed, sales, number of visitors, etc., to measure the effectiveness of your campaign.
More to Come on Pizza Coupon Marketing Strategy
Coupons, discounts, and deals will bring more customers to your pizzeria. However, the extent to which these strategies impact your bottom line depends on the important decisions you make along the way. Using these best practices as a guideline, you will see better results from your next coupon or discount promotion.
And we have more to share! In our next article, we’ll explore the various types of coupons and discounts you can try in your pizzeria so you can choose the perfect one every time.
