More companies than ever nowadays use coupon marketing as a strategy of expanding their market bases and increasing revenues. In most cases, if used strategically and appropriately, discount vouchers can be an efficient way to boost your business. A quick online search, for instance, shows that Norton (SYMC) discount codes have contributed to a gain on 2017 Q2. While this is the case, coupon marketing presents a few risks to businesses. Read on to find out more about the benefits and the dangers of coupon marketing to a company.
So what are the benefits of using a coupon marketing strategy?
1. Coupons bring in new customers
Coupons can be an excellent tool for acquiring new customers. They can entice potential customers to make a purchase which they would not have made had there not been a discount. Again, if they are satisfied with your customer service, they are more likely going to make return visits, and even buy more products than voucher offers.
Reasoning from a word-of-mouth marketing perspective, acquiring one or two satisfied customers from your coupon marketing campaign can result in more new customers (this is especially the case if you have good customer service). They are most likely going to recommend your company to friends consequently expanding your customer base and increasing your revenues.
2. Makes your business more competitive
Coupon marketing offers a great way to steer potential customers your way. Up to 85% of consumers these days tend to look for discount vouchers on products before making a purchase. Therefore, unless you are selling unique products, offering coupons might just tip the scale in your favor.
Again, your company business becomes competitive in the sense that coupons broaden your marketing areas. For instance, you can use affiliates to promote your discounts on their newsletters, websites, or blogs. This, combined with other distribution platforms like social media, expands your market and thus makes you more competitive.
3. Coupon marketing can be great for advertising new products
At times, it may be necessary to entice consumers to try a new product. Instead of offering free samples of the particular product (which may involve home delivery costs), it would better to provide tempting discount vouchers that may result in real sales. If the consumers like the products, they can make return visits and even buy them at full prices.
Also, it will minimize extra advertising costs of your business. Having the name of your company, your address, and other important information on a coupon can lead more customers to your business.
4. Coupons will help you keep your existing customers, and re-activate old customers.
Coupon marketing can help a business to keep existing customers loyal. Discounts often generate goodwill and store loyalty among customers. Customers feel valued, and this makes them keep coming. Again, when old customers notice you are offering discounts on some products, they can make their way back, and then you can entice them to stay. Your business grows.
5. Coupons can generate traffic to your business’ website
Everyone loves a good deal, right? When consumers find a good discount in a coupon site like www.qetes.com, they will be attracted to your online store. This will increase traffic which results to increased sales not only on the discounted products but to other items as well. An individual can be drawn to your business by, say, a discounted shirt, but may also buy a jacket and other accessories in full price.
Potential Negative Impact
However, coupon marketing may also have a few downsides as it poses some risks to your company. Firstly, customers may choose to hold off on making purchases until the next time you offer a discount. This is often the case if your company uses coupons regularly. So it is advisable that you avoid teaching your customers that there will always have a discounts.
Secondly, they can result in cannibalization of your existing revenues. This is especially the case if more of the people redeeming the vouchers are existing customers who would, anyway, buy the products at full prices. Limiting your coupon offers to new customers can solve this problem.
Another risk is that coupon marketing may not be as sustainable for your company as you would expect. For instance, some consumers may choose to buy only the discounted products and move on to hunt for other promos. Again, new customers may not make return visits. Improving your customer service and offering discounts on high-quality products is an excellent way to encourage return repeat business.
So there you go. Hopefully, this post has been helpful. If you are intending to start using coupons to drum up revenues, consider the benefits and downsides discussed here to make an informed decision.