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Sunday, July 20, 2014

Pros and cons of companies using coupons for marketing

Benefits of business coupons
Coupon branding affects business marketing
Businesses want to attract a large crowd of paper into their store or to their website. While it takes great products, amazing prices and customer loyalty to develop a winning and successful brand, it also requires you to give the consumer more than the other guys.

There is a lot of competition out there, and you must prove that your company is worthy of their time to be a success. One method that most companies use to attract customers is coupons.

A coupon entices the customer to shop, but it also reduces the profit that will be earned on that particular item. Yes, both pros and cons of coupon usage by companies exist, and here we will shed light on a few of the pros and cons.

Pros of company coupon use

One of the biggest advantages of using coupons is that they attract the customer your way. According to research, approximately 85% of all shoppers use coupons when they shop. Deals have a special way of catching the eye, so you can ensure that the use of the coupon sparks a great deal of interest in what you have to offer. The coupons even insinuate the return of the customer, especially if you are constructing things the right way.

Even when customers are redeeming coupons, your business isn’t likely to lose money. In fact, once the customer is inside of your store or on your website, they are likely to spend far more than what their coupon is offering. So, it is a gimmick that can win for both of you if the right strategies are in place.

Coupons are great to help advertise a new product or service being offered by the company. What better way to help customers get acquainted with what is being offered than with an offer that also saves the money?

At the same time, coupons can also help promote products that aren’t selling very well in the store. While a customer may be unwilling to spend X amount of dollars on the item, with a 25% discount coupon, the price may be just what they need to make that purchase. This is a trick that so many businesses use, and it just happens to be one that works very well in most situations.

Coupons make it easy to measure and analyze your sales. The coupons are considered to be one of the most accountable methods of advertising today. What does this mean to your business? It means that you can see exactly where customers are spending their money, the price they are willing to spend for a product and so much more.

Cons of using coupons

There are also a few negative aspects associated with the use of coupons by business owners. It is imperative that the negative aspects of things be taken into consideration just as the positive. Let’s take a look at some of the negative points of using coupons as a business owner.

One of the biggest considerations that a company needs to consider when deciding to use coupons is whether or not it will impact their business in a manner that requires the use of coupons and sales to get customers in the door. While you want to always have a great deal for the consumer to take advantage of, you do not want this to be the one and only reason they visit your store.

Coupons can also hurt the image of some businesses. Some people do not view coupons as a way to save money, rather than a cheap gimmick. Consider the reputation of the business that you operate to determine whether or not coupons will reflect this negative image rather than a positive image.

As you can see there are far more advantages of using coupons than disadvantages. As a business owner it is up to you to decide whether or not coupons should be used at your facility. However, for the most part, coupons are a great form of marketing that almost all businesses can use to benefit greatly.

Consider both the pros and the cons of coupon use with your company, and then decide. Chances are you will love what coupons can do for your company.

Image license: Dmdonahoo; CC BY 2.0