This guide outlines the pros and cons of using a coupons marketing strategy for your business to increase sales and promote your brand.
Using a coupons marketing strategy is one of the most effective ways to attract more customers to your business, and what’s more — make them come back. Coupons with discounts or special offers (such as “two for one”) allow your potential customers to get familiar with the offer while also helping to build your customer base and increase customer loyalty.
Pros and cons of a coupons marketing strategy
Using coupons for business, like any other business strategy, has its own benefits and disadvantages. While the most significant drawback of coupons is that they cost you money, the advantages of using them vary from introducing new product lines and encouraging customers to buy more from you to getting rid of excess inventory.
This article discusses the pros and cons of using a coupons marketing strategy for your business to help you make an informed decision.
The Pros of Using a Coupons Marketing Strategy for Your Business
Increased Sales and Customer Loyalty
One of the most significant advantages of using a coupons marketing strategy is that they increase your sales and build customer loyalty. By offering a coupon to potential customers, you can attract new customers to your business and encourage existing customers to spend more cash on your products. With sites like https://www.supersavermama.com/ making it their primary strategy, there is no reason why it should not work for your business.
For example, if you offer ten cents off for every dollar spent on a product, a customer who buys a $5.00 item will end up paying only $4.00. If a potential customer sees a great deal like this, they will be much more inclined to buy from you, increasing your chances of making a sale considerably.
Coupons Allow You To Test New Product Lines
Coupons are also beneficial when it comes to testing new product lines or services by introducing them at a discounted price. You can then see how well they sell, measure the level of customer satisfaction with the products, and decide whether or not to continue producing them. If they prove to be successful, you can then raise the price of the product or service to make more revenue.
You Can Sell Overstock Inventory Through Coupons
Coupons are also effective at getting rid of excess inventory you may have in stock, especially if you are unwilling to sacrifice any profits. For example, if you have too many t-shirts that you don’t want to throw away, you can use a coupons marketing strategy to sell them at half price or even less than that. It allows you to get rid of your inventory without much hassle and earn some money from it.
Nevertheless, it is important to remember that using excess inventory as an excuse for creating discount coupons is one of the most common mistakes. Discounting products is fine if you usually sell them at an affordable price to begin with. But, if your products are already priced low, you will actually be losing money by offering them at even further reduced prices with coupons. For this reason, you should only use coupons for products that your customers already frequently purchase at your regular pricing.
Coupons Are Easy To Create and Distribute
Using a coupons marketing strategy is very cost-effective compared to other advertising methods such as radio, television, or newspaper ads. They are not expensive to create — all it takes is a simple design and printing of the coupons themselves.
Furthermore, distributing them does not require significant resources. All you need to do is post them around town or leave them in strategic areas where people are likely to see them. Once they are out there, it’s up to the customers to seek them out!
Coupons Are Popular Among Customers
Finally, one of the main advantages of using a coupons marketing strategy for your business is that they are very popular with customers. They provide customers with what they want — inexpensive productsthat allow them to save money on some of their purchases — while also giving them something exciting and fun to look forward to whenever they go shopping. This kind of excitement is often enough for potential customers to want to try out your business, leading to more sales opportunities in the future!
The Cons of Using Coupons for Your Business
Coupons Are Not Free
One of the most significant disadvantages of using a coupons marketing strategy is that they cost you money. Not only do you have to pay for producing the coupons, but you also have to consider the costs of distributing them. After all, someone will have to get paid for the time needed to distribute your coupons. For instance, if you work with a coupon distributor service, you will have to pay them for their services and any additional fees or charges they may apply.
Besides, you have to invest some time and energy to ensure your coupons are available in the right places for customers to see them. Otherwise, all your previous efforts will be wasted.
Some Customers May Abuse the System
Unfortunately, some people take advantage of coupons or use more than one coupon at once or resell them on the internet. While this does not affect most businesses, you should consider it when using coupons for a small business.
Coupons Can Become Expensive Over Time
While it is true that you will save money by creating a coupons marketing strategy for your business, it is also important to remember that if you use them too much, they might become costly over time. Potential customers will lose interest in your business if you continuously offer discounts and special offers. As a result, they will be less likely to buy from you, which will ultimately cost you more money than what you’re saving with coupons.
Coupons Can Be Difficult To Manage
If you decide to create your own coupon designs, you need to create and print each of them. Overall, it can be a challenging process to manage. Moreover, if you want to spend even more money on creating unique designs for different events or sales, you should consider hiring a professional designer to help you out.
Coupons Can Be Difficult to Track
In addition, when you use coupons for your business, it can be hard to track how many times a customer has used a particular voucher or how many times a specific product has been purchased with a specific coupon. Sadly, it means that it can be challenging to determine how effective a particular coupon really has been in attracting customers and increasing sales in your business.
Final Thoughts
While there are plenty of advantages to using coupons for your business, it is also important to keep in mind the disadvantages associated with using them. In order to make an informed decision about whether to use them to promote your business, it is essential to compare the pros and cons of using coupons for your company against other strategic marketing methods such as traditional advertising and social media.
Once you have considered all the pros and cons of using coupons for your business, we recommend talking with a professional marketing consultant. They can offer insight into how well coupon-based strategies perform in your industry and advise you accordingly based on what they know and what you need to succeed in your industry.
