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Expert Answers to Biz Questions
Listen in! Pick up some expert advice to a reader's question that we selected from CyberSchmooz.
Everything About Couponing for Your Business: Pros, Cons, and Tips to Use
There is no doubt that couponing has become one of the most buzzing promotional tools of most of the businesses nowadays. Isn’t it? And, are you also doing the same for your business? Well, I, being a marketing manager, too have done the same for my organization.
And, with my experience, I would like to mention that using coupons depends on many factors which include your business model, what is your objective and so on. It is definitely not something too easy and quick!!
However, coupons are nothing but advertisements through which you try to attract your customers. Right? So, you should act in a strategic way before you take the ultimate plunge. You ought to know very well about the every aspect of using coupons.
And, today, after doing a thorough research, I am here with a lowdown of the three main facets of offering coupons which are:
- Pros of using coupons
- Cons of using coupons and
- Tips to use coupons effectively.
Let’s discuss these three eminent features of couponing now!!
Pros :
There are a huge number of benefits of using coupons and vouchers. And, I guess, that is why this concept has stimulated the market immensely over the time. For example, if you take a glance over the famous coupon site like Dealslands then you can notice that how wonderful and excellent it is!
Here are the perks of using coupons for your business:
- Results in a quick infusion of money.
- An easy way to unload your inventory
- Might encourage switching to brands.
- Let people try your products or services as ‘first time trial’ at a lesser price before they decide to buy for full price.
Cons
But, couponing is not a bed of roses of course! There are multiple drawbacks of the same even. So, you need to be very cautious and smart while offering coupons for your business.
The demerits of couponing are:
- Sometimes offering coupons can turn out to be something very expensive for you.
- Might not become a sustainable promotional strategy as customers can sometimes only buy the products which have been offered at a discounted rate.
- Coupons might cannibalize your existing revenue as you would be offering discounts to your regular customers even who will anyway buy your products at a regular price.
- Customers can become so much comfortable with the idea of waiting for deals and offers that they just start to avoid buying at a regular price from you.
Tips
So, after knowing about the aforementioned pros and cons, if you want to offer coupons then you must keep some tips in your mind to be in a ‘win-win’ situation always. I did a research on the marketing strategy of the top brand like New Look and many others and then came up with the following suggestions for you.
Read ahead!
- Competing on the real value of what you sell is better than doing the same on the price altogether.
- Don’t forget to think about your offer from the customer’s point of view.
- Understand the margin of your profit before you decide the discounted price.
- Assess the impact beforehand that couponing will create on your regular customers and business.
- Always keep an eye on the impact of percentage discount on the worth of the product. Suppose, if you offer a $ 400 off or a 2% discount on the purchase of a $30K car then it will not encourage the buyers to make a purchase.
So, I hope you are completely clear with the idea of offering deals and offers as a promotional tool for selling your products and services now. Then, what are you waiting for?
Just keep in mind the summary of the elaboration given above, understand the intricacies and thus no one would be able to stop your sales graph from climbing the stairs of success.
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