Customers love getting something for free, but how do retailers benefit from BOGO deals? After all, giving away an item for free means losing profit. While on the surface a BOGO offer won’t result in more money itself, it can have a wider impact on your store than you might think.
Through Octopon’s platform you can design custom coupons, opening the door to any type of discount or deal you can imagine. As you experiment with different coupon campaigns, don’t overlook the power BOGO coupons have. They have many advantages that, when used correctly, can lead to more sales in the short and long-term.
Everyone understands what “free” means. Building a strong coupon campaign requires you to think about things from your customers’ perspective. At their core, coupons are a means to get customers through the door and shopping with you. The deals need to be enticing, but even a good deal can be ignored if the language isn’t clear. BOGO is, essentially, fifty-percent off a purchase of two specific items, but customers don’t process it that way. “Buy one get one free” frames the same deal in a simpler, more appealing way. It has a greater potential to click with a wider audience.
Pushing overstocked or low-selling items. If you break down what BOGO means in terms of profit, you’re taking a fifty-percent loss. That sounds like a lot, but consider this: an item that’s not selling is taking up space in your store and giving you nothing in return, and if you ultimately give up on selling it, that’s a one-hundred percent loss. Customers who can’t resist a freebie will be more willing to buy a product they’ve never purchased before if they’re getting it at a bargain. You’re still taking a loss on the item you’ve given away, but the purchase required to get the freebie will minimize your overall losses while getting rid of stubborn stock.
Taking attention away from the competition. BOGO coupons tend to be valid for a brief period of time. Both the offer and tight time frame grab the attention of your customers, taking it away from your competitors. You’ll potentially catch the eyes of their shoppers, too. While some will no doubt come to you just to redeem the coupon, it gives you the opportunity to sell them other products. If you take the initiative, it could result in you converting those customers from your competitors long after the deal has ended.
All coupons work to get new customers, bring back old customers, or retain your current customers. BOGO coupons do this better than almost any other deal because of their simplicity and attention-grabbing nature. Market them correctly and you could be reaping the rewards long after the promotion has ended. Try Octopon today and find out for yourself!