Do Coupons And Vouchers Work For Business?
All of the shopaholics out there, including me, love any discount we can get. In fact, who in the world doesn’t like buying something at a cheaper price? Sales are what we live for and we love all brands and stores that offer coupons.
But today, let’s look at these coupons from another side of the road. Are they bad news for businesses?
On the surface, any discount results in less money in your pocket. However, doesn’t it bring more consumers to the store offering them? How to know if they are good for your business or not?
Well, let me tell you that it does wonders to improve your sales in the long term. Let’s take an example of Gossard, a lingerie brand. Gossard code helped the brand raise its sales figure tenfold in just a few months.
Want to know how? This blog will help you decide whether to offer coupons to your customers or not. Continue reading…
Pulls in New Customers
Have you ever bought something just because you could get it cheaper than its usual price? Most of the shoppers are guilty of this act.
This explains why most businesses use vouchers to drive new clients to their products.
The psychology behind this phenomenon is simple: People, who otherwise might not be interested, will give your product a chance if they can get it at lower prices. It allows them to try out your product without spending much.
In fact, new users later become regular buyers of your product if they like it the first time. Isn’t it great to increase your customer base without much effort on advertising?
Revives Past Consumers
Most shoppers switch to other brands after a time even if they like the brand they currently use. Why? Just because they get bored or even forget about a brand if they have a huge number of substitutes to choose from.
Hence, you have to be careful not to let your current purchasers move on to your competitors. How? By offering them additional benefits from time to time.
Coupons can rekindle the interest of your past customers in your product and remind them about why they chose it over others in the first place.
I am well aware of the fact that losing customers is inevitable for any business over time. But you can counter it by coming up with different ways of regaining their interest.
Keeps Current Users Happy
It is much harder to retain customers than to gain them. Competition between businesses is intense in this era, making a huge variety of product available for shoppers to choose from.
In such circumstances, it is necessary to keep your clients happy and satisfied in different ways. Coupons are one of the most effective ways of doing that.
Such benefits give them no reason to stop using your brand, even though it means less profit for you.
Conclusively, every customer is valuable to the business. That is why you have to make sure they stay with you for a long time.
Sells out Unwanted Stock
It is not wise for businesses to keep their stock in storage for a long time. Products go out of trend fast and then do not sell out later.
Discount vouchers are the best way to get rid of unwanted inventory quickly without much loss. It makes room for the new stock or products in the warehouse.
Increase Sales for Related Goods Too
Ever heard of “killing two birds with one stone”? This saying relates to coupons too. Let me tell you how.
Discount vouchers results in more sales, not only for the product it is for but also for other related items too. When individuals go to a store to redeem their coupon, they might be tempted to buy other associated things too.
Let’s take the example of a dress. A woman who buys a dress at a discounted price will be encouraged to buy matching sandals too with the money she has saved on the dress.
“For everything you have missed, you have gained something else”.
I totally believe in the saying mentioned above. Businesses may see coupons as a loss or a reduction in profit margin but they definitely are beneficial for them in the longer run.
To avoid any actual loss from discounts, the key is to estimate how many purchasers the vouchers should attract to cover the reduction in your profit margin and increase it. This way, you make much more money than the amount of the discount you offer.
In addition, you earn a huge number of new customers who tried your product just because they could get it at lower prices. Not to forget that these coupons and vouchers made your existing customers happy too.
To conclude, coupons and vouchers definitely work and business should try to take as much benefit as possible from them, especially the new start-ups.