Coupons are considered a favorable option for the customers and probably the most compelling reason to prefer the store among other competitors. It not only acts as a rate cutter for the products or services offered by the store but also adds some exciting benefits as well. Coupons are the main reason that the number of people prefers online shopping and the same could be a great addition to the retail store as well.
On the other hand, being a store owner, things get quick tricky because, while attracting new customers and boosting the sales to its maximum potential it also tends to cut the profits as well. Therefore, one should surely think of the coupons and their suitability to their business model. This is because, like every marketing technique, having coupons also has its own set of advantages and disadvantages.
Advantages: –
- Attract new customers: – Coupons reduce the efforts to grab the attention of customers by claiming less cost before buying the same product at full price. As per the business and marketing experts, the business having coupon codes and offers have a 50% redemption rate. Later keeping the customer engaged with your product or services and then making them buy it depends upon your marketing skills probably.
- Making loyal customers: – Having coupons and rate cutters can also make your customer return to your store again. As per the experts, 31% of the first time buyers return to the store to make another purchase if the offer is quite compelling. This is also an effective way to manipulate people’s minds to switch brands as well.
- Meeting the profit margins: – Although offering rate cutters of the products or services can cut the profit, the minimum profit margin can surely be attained by gaining the targeted number of customers.
- Meeting customer expectations: – A company that maintains a number of coupon websites can get the maximum targeted number of customers. The reason for this is, the number of buyers expects a coupon or discount to get a good benefit when compared to the other competitors.
- Sustaining the competition: – No matter whether the buyers are middle class or rich, they always look for the best deal. Therefore coupons can be a great way to make sure to withstand the competition efficiently.
Disadvantages
- Cutting into the profits: – If the coupons are availed for the products or services that are quite essential and the customer would go for it even if there are no offers, then it is surely a loss to the store owners.
- It can cost an inch of money: – Offering the coupons without understanding the profit margin can increase the incurring losses risk to a great extent. Therefore, one should surely go for proper calculations and also consider the key factors such as the cost of production and overhead expenses too.
- Sustenance from the customers: – Offering coupons may not always be a sustainable practice for every business as there will also be the buyers who avail the offer but never return again for the full price purchase.
- Reduction of the value of offerings: – There is a chance that people would think negatively about your quality if you continue to offer a low rate for the same products. Branded companies may also lose their trust factor from the customer upon the quality as a minority of customers thinks that low price is equal to low quality.
However, while starting a new business one could surely use this technique to grab as many customers as possible to be renowned in the locality easily and fast too. Sites such as GoMontana provide the easily accessible coupons for thousands of stores which will not only help in diverting traffic but also to acquire a targeted number of customers as well.
