Key Takeaways
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- 3 out of every 4 homeowners would use a coupon they received in the mail for a home service they needed.
- Consumers with higher incomes are equally if not more likely to use a coupon than consumers with lower incomes.
- When using coupons you should always include one generic offer that can be used on a wide array of services.
A strong coupon/special is often the catalyst to attracting and acquiring new customers. The cost-reward ratio of offering a small discount always makes sense when compared to the lifetime value of a customer. Providing small discounts to current customers also creates loyalty and increases customer retention rates.
We asked 5,818 homeowners
the following question:
If you received a coupon/special in the mail from a reputable home services provider (i.e., heating, air conditioning, plumbing, electrical) offering a discount on services and/or products you need, would you use it?
Based on our findings, the demand for coupons and savings continues to remain high, with about 3 out of every 4 homeowners surveyed reporting they would use a coupon if they received one for a home service they needed.
However, it may surprise you that there seem to be no boundaries regarding income and using coupons/special offers. The homeowners in our survey with higher incomes are just as likely to use coupons as homeowners with much lower incomes. This further dispels the misconceptions that wealthy people don’t use coupons/special offers.
Recommendations
Crafting strategic coupons/specials is critical to maximizing response rates. One offer that is always a best practice is a generic offer that can be used toward most services. Generic offers appeal to a wider audience than narrow ones for a very specific service, thus increasing response rates.
This is not to say that you should not include specific offers on services you would like to promote. However, the generic offer appeals to the rest of the consumers that don’t need the more specific offers.
Below are examples of two generic coupons offering a discount on any service.
The only difference is that Offer B is a tiered savings strategy. Set the price points, services, and content to fit your business’s needs.
Download Cracking the Code Home Services Today To learn more about your customers
and to access all our latest consumer research and insights.
What Else You’ll Learn
- Do consumers know what HVAC companies do?
- What offers do many HVAC companies get wrong?
- What influences your customers the most?
- What Google rating can hurt your business?
- How often do your customers want to hear from you?
- One Proven Retention & Referral Marketing Concept.
- Are homeowners interested in maintenance plans?
- How much does your technician’s appearance matter?
- & Much More!