What are the pros and cons of using coupons for business purposes?
Coupons are the best way to generate more and more customers for your business, which is a widely accepted strategy of many. Before heading into the topic let’s check how often customers use coupons while purchasing in the below chart.
In today’s world of marketing, nearly 96% of consumers have made use of coupons in the past 90 days. JC Penny opted to try to break the consumers for the habit of coupons in 2012. He experienced a 23% drop in sales during the first half of 2012. Well, if JC Penny can fail in changing people’s shopping behavior, they probably must not try it either.
Hence, the concern is not about either you should use the coupons for your sales increase or not. Rather it is concerned with the ways you can make use of the coupons strategically to grow your business. Besides, it must focus on how you can grow your business without spending much from the margin of your profit.
Consider the cons of the coupons at the beginning
One of the most important cons of using the coupon is, it will need you to pay a good amount of money. All the discounts offered that you give will mean the least earning of money in your pocket. Thus, the good method is to measure whether this discount will create any difference in profit amount or not. Besides, decide if it will introduce new consumers to your store, or it will return the older ones which might have made their shift to the new shop in chase of other coupons.
Jay Goltz, in his New York Times column, “Doing the Math on a Groupon Deal,” opted for developing a method to calculate either or not a coupon offer will be credible for your profit margin or not.
Also, your regular consumers can get along with the waiting habit for the coupon. It is capable of cannibalizing the income which is getting generated before you introduce the coupon campaign. Thus, you must know at which time and in which way you should go for offering the coupons by coupon websites like mronn.com to avoid any impact on your regular consumer base.
Coupons always turn up with reduced profits on the items or items added in the campaign of coupon. However, the price of purchasing that product will not change. Thus, while you consider the relevance of coupon marketing for your business, it is important to look for a way to determine whether the discount might come up with better sales or not. We need to talk more about the way of using coupon marketing in a strategic method to leverage the expansion of the business.
What are the pros of using coupons?
The first and foremost advantage of offering your coupon consists of the driving of fresh consumers to your store. It helps you to introduce new product lines. At the same, it offers you the best chance to run a clearance of all your old inventory to arrange some more storage in your warehouse or store for the fresh set of products. It entices the customer to try out a new brand that is very profitable and get the old customers to return to your brand.
It would be best if you always focused on maximizing the advantage of the coupons in your digital world of today’s marketing. It offers a great way to build up better customer loyalty. Coupons can easily become a pivotal strategy for your social media-based marketing; you use them in a strategic method.
Another best way to enable the coupons for long-term business marketing tactics is to influence repeat in the customers. It will help you to collect their personal information with an email ID to offer the coupon. You can use their details for your future email marketing.
Also, you can distribute your coupons on social media sites like Facebook. Consider the coupons become available for those consumers who give a ‘like’ to your social networking page. It is a great way to communicate with your customers to construct a long-term business relationship.
Here is how you improve the strategy of coupon marketing to improve your business line:
- While the coupon drives traffic and prospects to your store, the customers may then buy the other products. This is very common in food stores.
- The coupon can encourage customers group who are not much available for a long period. It can encourage them to make a return to your store.
- It will introduce you to new customers for your store.
The Bottom Line
Coupons are one of the most excellent strategies to target new customers while maintaining loyalty with the old ones. The focus must be on developing your coupon marketing strategy. You must know how this incredible method of coupon marketing strategy with exciting discounts will boost your expansion of business or it will enhance your sales.