As we head into the period of holiday shopping, small business owners are always looking for ways to take advantage of the "buy" mentality that seems to take over our country. However, in between the deep discounts and crazy (and expensive) marketing campaigns, it can be difficult for a small business to know how to best balance the lure of a promotion with the cost of discounted products and services. To help make sure that you please both your customers and your budget, keep these coupon practices in mind for your holiday discounts.

Remember the Purpose of Coupons

When used correctly, coupons can be an extremely effective marketing tool. They attract the attention of people who might be considering your business, but need a little extra push to purchase. While there is always the hope that coupons will drum up new business, they aren't designed to make you a lot of money. Make sure that whatever holiday discounts you offer are ones that you can afford for the duration of the offer.

Use Holiday Discounts to Your Advantage

Do you have some inventory languishing in your storage room? Services that are rarely used? Consider using coupons to help move hard-to-sell items or to bring awareness to specific services. There’s no rule stating that discounts have to be applied to the items and services that are your best sellers. Be smart with your offers and help your holiday shoppers explore the full range of your products and services.

Clarify Your Limitations

Limit one per customer. Expires after 30 days. Cannot be combined with other offers. You want to make sure that the coupon is tempting to your customers but does not allow them to take advantage of a loophole that harms your bottom line.

Encourage Repeat Visits

A one-time holiday discount or sale might bring customers to your door for that specific day, but what is going to help them come back? Try using a coupon that is tied to a return visit or surprise your customers with a thank you that includes a promo code for next time they shop at your store or on your website.

Don’t Forget to Share

Word of mouth and referrals are some of the most effective ways to build your business and cut through the noise of your competitors. Give your customers an incentive to share their love of your company by offering a coupon for liking your social media pages or send them a special code that offers a discount to their friends and family. A satisfied customer can become your best ambassador.

In Conclusion

The holiday season is a great time for a small business to attract new customers and reach your financial goals. By using holiday discounts and coupons in a smart and healthy way, you can use this period to help your business grow and prosper.