We know coupons are everywhere and they have been around for a long time. Does that make you feel pressurized to offer coupons to your customers? Are you afraid of being left out of the race if you don’t? Wikigains, a reputed UK coupon site suggests you to look before you take the plunge. Wait and analyse your situation. Are coupons the right advertising tools for your business?
While coupons may mean different things to different people. For a business owner, these are tools for advertising and promotion. They are the medium through which you acquire new customers, retain the existing ones and remind the old ones about your brand. However, the decision to use coupons or not as a part of your business strategy may depend on a lot of factors.
The research team at Wikigains has extensively studied the pros and cons of using coupons. They have listed down some of the important points to consider before you join the bandwagon of companies offering coupons.
Benefits Of Using Coupons
When your sales are low or the old stock is not moving, voucher codes act as the stimuli to push sales and result in a quick cash infusion to your business. It also helps clear out the old stock so that you can make way for the fresh ones.
If you are a new business, it is natural for customers to feel apprehensive about trying your products for the first time. Coupon codes can give them the reason to do the first-time trial and then pay full price to buy the product next time, if they like it.
Encouraging people to switch a brand they comfortable with and make them try your services is tough. However, if you come up with an amazing offer bundled in a coupon code, many people may consider switching the brand to save money.
When your business is new and still struggling to get a foothold in the marketplace, coupon codes can be an integral part of your customer acquisition strategy. By offering welcome coupons for first time users, you can dramatically increase your customer base.
In a study conducted by Wikigains, most businesses said that they experienced a significant rise in sales and new customer acquisition after offering coupon codes.
Not all coupons will be redeem but even those that are never used work as a tool to raise awareness among people regarding your business and raises your increase visibility.
Downsides Of Offering Coupons
Offering coupons may be costly for some business. As a result, make sure you understand what you are actually able to giveaway to your customers.
It may not always work as a sustainable promotional strategy because some customers may only be interested in buying the discounted items. The new customers may avail the welcome offer and never come back for a full price purchase.
Wikigains says that most businesses can benefit from a coupon strategy but they need to analyse their needs and base their strategy on it. According to experts, discounts should be available at all times or else this may reduce the value of your brand. When used correctly and at the right time, coupons can help businesses grow and get more customers.
