Profitably Using Coupon Expiration Dates

Recently, a restaurateur asked whether he should allow customers to use expired coupons.

That coupon’s supposed to lure prospective patrons, so it SHOULD be a no-brainer. Considering the costs for getting and keeping a customer (especially these days!), I’d argue it makes sense to be flexible.

After all, if you were willing to provide the $2 discount yesterday and the coupon did its job (albeit a day late), why upset your customer by denying the discount? The extra goodwill you’ll generate is worth MUCH more than the two bucks you lost.

Still, there’s an ongoing debate whether coupons should expire. Expiration dates can provide a sense of urgency and help promote sales sooner. No dates give coupons a longer shelf life. Results of the two approaches are fairly similar in the long run.

If Coke issued a coupon that expired yesterday, a consumer won’t typically have much flexibility about still being able to use it. When you’re the boss, though, you can make the rules to suit your business’ needs.

This flexibility is important for small businesses, since you’re typically dependent for survival on local relationships and returning customers.

My friend Dave proved this at a local café with a coupon that expired the previous day. He’d brought a friend to the otherwise empty establishment, and was denied his discount by both the server and owner. Lacking even an apology, he’s vowed to never return.

Yet with a better attitude and a discount coupon good for the next visit, the café owner could have salvaged the situation. He’d have gotten full price for the current breakfast while increasing chances his customer would visit again.

Let’s be realistic; restaurants are in trouble these days and need every edge they can find. Given the impact of social media, you’re probably going to profit more in the long run by overlooking that passed deadline and providing the original discount.

Besides which, unhappy customers are sure to tell 10 times as many people about their bad experience. I know Dave has been going out of his way to badmouth the café he felt didn’t treat him well.

All of which suggests we all remember that, regardless of what we sell, the customer is always right…even when he or she isn’t. Because without customers, we’ve got NOTHING!

With that said, I wish you a week of profitable marketing.

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