Published on January 29th, 2019 | by Sumit Bhowal0
Advantages & Disadvantages of Coupons
For your business to succeed, you must strive to attract a loyal customer base. And to get customers to trust you, you must be reliable and offer valuable products.
Today, many businesses, companies, and organizations use coupons to entice customers to buy their products. For instance, business in the entertainment industry like VideoBlock, they could offer VideoBlocks Coupons to attract more customers
Coupons will attract more customers to your business and hence increase sales. However, as a promotional strategy, you must ensure to have an effective strategy in place, be ready in case things go wrong and understand the coupons that are thought to be rip-offs.
With that in mind, here are the advantages and disadvantages of to businesses owners. You may also get great deals with
1. Attract More Customers (+ New ones) and Increase Traffic
When you sell products on discount, you are likely to attract and retain more customers. As a business owner, you may be aware of the lifetime of the products you have in your store. Some products will remain profitable even when they stay on the market for many years while some will lose their profitability for a short period of time. You are also aware of the products that bring more profit to your store and those that don’t. Every new product you introduce in your store means they will attract either new or old customers. Coupons will help to attract new and existing customers to your store and increase your sales.
2. Cleaning Out Existing Stock
As seen above that coupons attract new customers to your store, it becomes easier to clean out your existing stock of products. This way, you get enough space to stock new products by offering the existing one at a lower price. However, you must implement a good promotional strategy when it comes to cleaning your existing stock so that you attract and retain customers.
3. Cuts Down on Advertising Costs
The good thing about coupons is that you can include your business’s name, address and other important information about your business. This way, you will not need to spend a lot of money on adverts and will also make customers perceive your business as the one that offers great deals which will encourage them to visit your site to get any other discounts.
4. It is an Effective Way to Introduce New Brands
Every marketer knows how hard it is to introduce a new brand or a product to the market. Coupons will attract customers and hence make it easier for you to introduce your new products to them. Another greatest thing is that while giving discounts on the old products, you can then include the new ones just to make the customers to know their existence.
1. Regular Customers Might Feel Isolated
As a marketer, you already know that you have regular as well as one-time buyers. If you decide to give out the coupons to new customers the regular ones will feel left out. In this case, you will need to offer coupons in a way that satisfies the needs of all your customers.
2. Unsustainable Strategy
Giving coupons out to your customers is a way of promoting your products. It is worth noting that, there are people who will buy from you because of the discount offered, and then go away not to come back again once the coupon time has elapsed.
Overall, while coupons can attract customers to your business and increase sales, you need to think about how to use the strategy effectively to improve your bottom line.
Advantages & Disadvantages of Online Coupons to the Customers
Coupons are meant to help consumers buy goods at a cheaper priced than the original one. A consumer will take the coupons to the retailers or manufacturer for it to be redeemed and pay for the items purchased.
The good thing about coupons is that they offer instant value and savings. Here are the advantages and disadvantages of coupons to the customers.
1. Coupons are Easy to Find and Use
Coupons can be found online. For instance, couponsplusdeals.com and many others offer different types of coupons. As a customer, you just need to visit the sites and pick your desired coupons. But bear in mind that different coupons are meant for different products, so choose wisely.
2. Save Money
When customers use coupons to buy products, they get the products at a cheaper price than it originally was, this means saving money while maintaining the consumption levels.
By using coupons, customers end up spending more than they had anticipated. This is even worse in scenarios where the manufacturer will decide to offer free shipping for goods purchased online.
Advice to Customers
There are fake and genuine coupons, so it’s up to the customer to spot the two. Remember, some businesses are only finding ways to increase more traffic to their sites for better search engine rankings.
If you use printable coupons, ensure you can use it at the local retail store, since some stores do not accept certain coupons.