You see them almost every day in your mailbox – coupons from the mainstays of fast food – McDonald’s, Subway, Burger King, Taco Bell, Steak & Shake, Sonic and many more.
How can they afford to run so many print ads? Why is your mailbox inundated with a glut of coupons? Does anyone use printed coupons anymore?
Well, it’s pretty simple – coupons work – they’re effective. But why are so many delivered this way?
Yeah, Coupons Work: Coupons are a time-honored way of driving sales. At this point it’s a science with data driven decisions pulling the levers of sales and revenue. The big boys of fast food are smart. Coupons work for them.
Competitive Market: Tampa is a competitive market. Plus, the economy is down. Dropping coupons is a quick and easy way for fast food companies (and companies from many other industries) to stimulate sales.
Business is Down: With the economy down, marketers use the most direct, the most ‘heavy-handed’ and simple marketing approaches they can. Coupons equal savings. Savings means more money left in their pocket (at least that’s the psychological equation going on in the mind of consumers).
Traffic Flow: Coupons generate foot traffic and drive-thru traffic. They get new customers and existing customers to come in to the restaurant. And, they get those customers to come into the restaurant more often. Once people are in a restaurant, they are spending.
Steady Traffic Flow: Marketers use coupons to even out sales peaks and sales valleys. With advanced analytics, marketers understand what products need a sales lift, which days of the week are better or worse than others, what time of the day is slow and so on. By using specific offers, marketers can even out the sales a market or a location sees.
Tampa is a Test Market: Tampa is well-known test market, especially for restaurants. Apparently Tampa offers up a populace that’s relatively representative of the rest of the country when it comes to making food decisions. Fast food companies and other restaurants use their Tampa locations try new offers, new products and new promotions.
Support Specific Locations: Every McDonald’s location pulls in different amounts of revenue. The same goes for Burger King, Taco Bell and every other fast food company. There are a lot of factors involved. Customer service. Traffic flow around a restaurant. The individual franchisee that owns the location. The household income of the surrounding area. The level of competition within the area. Coupons can help stimulate traffic and sales to specific stores.
Now that you know why you’re getting so many fast food coupons here in Tampa you can make the decision to use them or chunk them into the recycling bin.