Discount coupons, when used correctly can drive a lot of sales and help in building a strong connection with your customers. Alex Papaconstantinou, the founder of well-known UK coupon site Wikigains says that coupons are like the occasional ‘LOL’ in messages that help in building a connection, but too much use can reduce the effect.
It is unfortunate that some businesses jump into the discount bandwagon, without analysing their requirements. If you are thinking of implementing promotional vouchers for your business, here are some pros and cons that you need to consider. This will help you predict the possible outcomes of discounting.
Benefits And Downsides Of Offering Discount Coupons
Getting New Customers:
It can work like killing two birds with a stone. Besides making your old customers feel great about a discount offer, it can also attract new customers. Mentioning about the discount in your social media page can help turn heads, especially for those thinking of buying the products.
Quick Means To Drive Short Term Benefits:
There is a reason why coupons are so effective and widely used by businesses. It works as a catalyst to drive more sales in general or for a specific product. It can be used as a good short-term strategy to offer customers a great value for money.
Getting Rid Of Your Out Old Stock:
When you have heaps of old clothes or items lying in your inventory, discount coupons can work like the driver to get them out. To get best results, have a clearance sale once a year or may be two times. Abstain from having a clearance sale on your website at all times as this can reduce the value of your products.
Making loyal customers feel rewarded:
Who doesn’t like to feel special? Treat your old and repeat customers with special perks and benefits. Wikigains says that customers feel rewarded when they get more value for their purchase than just getting a good product or service. By recognizing your loyal customers and thanking them for their efforts, you will likely add more people to you list of customers for life.
Losing the objective:
Remember that the objective of offering discount coupon is to build a good relationship with customers and reward those who are loyal to your brand. Don’t get into a cutthroat competition with your rivals to achieve the cheapest price to get more sales. Focus on improving your products/ services and sales will follow anyhow.
Attracting wrong type of attention:
You have to be careful to not attract the wrong attention from your customers. Make sure people don’t wait for a good bargain to purchase from you rather than appreciating what you have to offer. This can be bad for your business in the long run.
Wrong perception about quality:
Think from the point of view of customers. When a deal is too good to be true, it’s but natural to feel suspicious. Hence, offering huge discounts can make your customers believe that the quality of your products/ services is compromised.
Wikigains says that discounting is a tricky strategy that stands on a thin line, and it depends upon the business how they use it for their advantage. We recommend that you appoint a manager who should be responsible to study the market, analyse the pros and cons and then issue suitable discounts.