How good you feel when you’re leaving the store after making purchases, and the cashier hands you an online coupon code for you to redeem next time you make a purchase.
We know! This is what coupon marketing strategy is. By utilizing coupon code strategy; businesses ensure of the followings:
- Customers are returning.
- High revenue generation.
- New customers guarantee.
- Low costs of advertising.
Coupon marketing strategy is effective in gaining new customers, turning them into an existing one. Boosting sales is another benefit of this strategy. Recent findings revealed that 9 out of 10 consumers redeem coupons when they undergo a shopping process.
Nothing is more potent than word-of-mouth advertising. Every single customer is essential; their satisfaction will give you rewards bigger than you anticipate. Till today, online coupons have proved themselves to be quite useful, spreading far and wide, customers taking your business everywhere with them.
Pros of Online Coupon Codes
Below are the beneficial aspects for your business when while offering online coupon codes to consumers:
1. New Consumers
The primary advantage of providing online coupon codes is new clienteles for business – the more the consumers, the merrier the sales and profits. You’ll have numerous people helping you get rid of old inventory; making space for new stock in warehouses. With coupons, a customer may even try something new because they don’t have to pay – they’ll be willing to sacrifice their coupon.
2. Advertising Costs
The eCommerce platform’s prime advantage is: free of charge advertising, or if a platform charges; it is a negligible amount for advertising your business. Online coupon codes are an optimum solution to promote your business; making sure half of the people avail them. Nobody leaves a good offer; if your coupon is offering something new from the market; chances are majority will redeem it.
3. Creating a New Baseline
With the help of online coupon codes, you can achieve new heights of marketing visibility. The digital advertising world is gigantic, and so is the clientele-base. You can have new customers every day; if and only if, you offer something customers will be interested in having.
Cons of Online Coupon Codes
There are several benefits of online coupon codes but comes with it few drawbacks as well. To be sure that your business doesn’t get affected due to these cons; read the points below and stamp them out from business:
1. Cost Money
96% of customers have redeemed online coupon codes every month – indicating that you will be selling items below your procuring price. You must strategize and make a list of products you can offer in coupon campaigns when customers redeem their coupon codes. Do the math correctly; you’ll have an idea of how much is at stake.
2. Customers Wait For Coupons
Once a customer gets habitual of acquiring and redeeming the coupons; they’ll wait for it. They won’t be going elsewhere. This means you’ve to consider the fact that existing, as well as new customers, will come to redeem the coupons they’ve earned. The business must be ready to entertain them all. You must know when and how often you can offer coupons in a month, and what will be the impact of it on business.
3. Reduce Profits
Due to online coupon codes, you’ll face a decrease in profits but an increase in clientele. A factor that plays a part in decreasing gain is purchasing price – it’ll be constant or fluctuate towards an increase. Key factors to ponder here:
- You must know: is it a good time to offer coupons? If not, when if the perfect time?
- Will it help the business to grow, and achieve its vision?
- Is your business in good shape to sustain the blow from reducing selling price?
In a Nutshell
Online coupon codes are the best resource for new startups or businesses who are on the verge of failure. You can grab a massive clientele from online coupon codes, which will ensure you have market recognition. These codes will drive an insane amount of traffic towards your store, be it online (which will have more traffic) or physical store. Make sure you’re ready to entertain heaps of customers when you launch your online coupon codes.