Coupons, coupons, coupons... everybody has them, and everybody loves them. But how can you use coupons to make more money in your business? Well it's simple actually. Everybody is looking for a deal these days especially with the price of goods rising on a daily basis. So anything that your customer can take advantage of, you can expect them to use your coupon.
By using coupons, there are definitely many pros and cons. Coupons have become the best methodology these days and almost all business are being promoted by the usage of various different types of coupons. Definitely, the largest benefit is that a lot amount of dollars could be saved.
In this article the pros and cons of using coupons for business will be discussed below.
Pros
Discount coupons are also beneficial because they help in reducing a company's advertising costs. Even though some people think that these coupons are just an added expense that they don't necessarily need, the truth is quite the opposite. Your advertising efforts are realized when your customers take a look at your coupons. Since they will come across other products you offer and already know the quality of your goods, they may even decide to buy them as well. Moreover, when customers get your coupons, they are bound to tell their friends and family. And you know just how effective word of mouth advertising can be.
One way in which a lot of companies are using discount coupons is to generate a buzz around their new products. The truth is that new products don't get quick results simply because people are not willing to put their money on risk by buying something that might not be that great in quality. However, because discount coupons offer these products for a reduced price, they are able to attract attention a lot faster. Here, the benefit for the customers is that they are able to try out the new product without having to spend a lot and the company is able to sell their new product.
Coupons tend to create a buzz among customers who regularly frequent your store, office, or website. Frequent visits from loyal customers translate into a quick inflow of cash, which is the main reason for dollar stores giving out coupons and discounts so often.
Every marketer is aware of the lifetime of each product line. While some products are profitable forever, others fade away after a certain period of time. You know which products are profitable to you and which are not.
Cons
Be sure you understand what you can afford to give away. Don't forget to include the coupon service's share in your calculations.
Coupons are a promotional strategy, so it is important to bear in mind that there will be a group of customers who will buy products with discounts only. This means they might not come back to your store once the discount or coupon time is over. That means coupons are clearly not a long time promotional strategy.
In other words, you’re giving a discount to those people who would buy from you at regular price anyway. One way to avoid this is by limiting the offer to first time buyers or setting the geographic distribution of the coupons outside your normal target area.
Mary