You can use coupons as a way to increase sales. With the help of coupons, you can get new customers and increase sales, but you also should take into consideration a couple of factors to evaluate whether they are best suited for your business model before you take the first step. Remember that this method, as with everything else, comes with its own set of pros and cons, meaning you need to be aware and know what you can expect before you jump into spreading your coupons around.
Coupons have become more popular for purchasing from online stores or physical retail stores due to the economic downturn that has made shoppers more aware of the price. Below you can learn more about how to use a coupon campaign strategically to help grow your business.
Pros and Cons of Offering Coupons
Attract new customers
Coupons for products or services have the ability to make it easier for you to attract people to test out your product before they purchase it for full price.
When it comes to first-time buyers, the resulting good news is that 31% of buyers returned to make another purchase. Furthermore, giving coupons can encourage people to change brands and may help you raise your brand recognition. For example, Lucky Bike offers various products from the entertainment industry using the services of diebestengutscheine.de for offering coupons and attracting new customers.
Couponing helps businesses to get rid of older products
If you have products whose expiration date may be only a few months away, it is best to get rid of them as early as possible in order to avoid any future losses, plus they will be no longer considered safe to consume or use. Using coupons can keep you from throwing away your products once their expiration date has passed.
Older products on the shelves being sold for a far lower price or with free additions tempt customers with small budgets. It is recommended that you combine such products with coupons to accelerate their sale without risking the safety of consumers. Moreover, as consumers love to use coupons, this allows you to use them with the purpose of introducing or promoting the product itself, apart from disposing of expiring products. As a result, you can get a dual benefit from using coupons for this purpose.
Reduce advertising expenses
Couponing is used as a way of making your products or business popular and recognizable. It can lower your expenses for advertisement using other platforms because coupons have an advertising function as well. Within your coupons, you can put your address, business name, and other important information you think consumers need to know. Using this method, people will recognize your business, and therefore it will certainly entice more consumers and sales. Besides, when you often provide coupons, probably more people will see them and be drawn to them, and consequently, it will lead them to your store. Therefore, instead of putting all those tarps around your corner spend its budget to pay for a coupon in order to attract more targeted potential customers.
Help identify potential customers
Straight into the coupon, customers will print their contact numbers, names, addresses, and the sort, all of which will help you figure out more about what type of customers and what parts of your business place have the highest sales of a certain product. By doing this, you will also get a customer database that will help you a lot in identifying the kind of products that are suitable for your business location. In addition, every time there is a considerable number of potential customers, couponing will also function as one of the tools for the future expansion of the business.
Your regular customers may get accustomed to using coupon
When you offer coupons, it may lower your profit. Actually, one of the most frequent cons of offering coupons to people is that you might be discounting to people who would buy your products even if you did not offer coupons. Also, your regular customers may get accustomed to waiting for coupons, which may cannibalize earnings that were previously generated before you implemented the coupon program. Therefore, you need to carefully plan for when and how you will offer the coupons so as not to affect your customer base.
It will cost you money
The main downside to using coupons is that they will cost you money. Whenever you offer a discount, there is less cash in your wallet. Your solution is to do the math and see if that discount will make a difference to your profit margin either by bringing new buyers into your store or by getting old customers that might have been searching elsewhere for other coupons.
This strategy may not be sustainable
According to studies, offering coupons may not be a sustainable business activity for some companies, considering the fact that some buyers just redeem the coupon and then never return to buy a second item at the full price.
It may decrease the value of your product
They may decrease the value of your product or service offerings. Giving customers the opportunity to buy your products or services at a discount may have a negative effect on the perceived value as well as on the quality you offer.
Once you take into consideration the value of a coupon campaign for your business, then you have to figure out a way to ensure that the discount will improve your bottom income on a long-term basis. Actually, coupons have a huge impact on business owners and shoppers. Nevertheless, when coupons are offered, there are still several things to keep in mind. Shoppers should pay attention to the expiry date applied on the coupon and check the quality of the product before buying. Business owners should be mindful to ensure their consumers’ safety and satisfaction. Products, which are offered with coupons should still satisfy customers’ expectations, and at the same time ensure they are beneficial to you as well.