(Newswire.net — June 3, 2020) — Offering coupons online is an excellent business strategy. Coupons have been studied to maximize sales performance. More than 80% of the population makes purchases through discount coupons. Coupons are a great way to save money for the buyer and expand sales for the manufacturer.
Having a business and betting on the effectiveness of the coupons is a great step. These are used to attract as many buyers as possible. However, a studied and intelligent strategy must be considered. Well, just as coupons can be advantageous to the business, an imbalance can cause large losses.
You must first define the characteristics of the client you want to cover. Based on the selection of the target client, detail the characteristics of the client based on the interaction with the products and with the advertising portals, and design a strategy that manages to offer you the coupon. This selection will allow you to confine the coupons, and make them more effective.
Actually, the coupons bring more benefits than losses, but the possibility of these, are still being taken into account. A great strategic plan that companies carry out is the application of coupons for very new or slightly discontinued products. When they are very new, buyers don’t miss the opportunity to test the product. When they are almost discontinued, a good deal can reposition them.
Advantages of using coupons for your business
Offering coupons is totally advantageous for the company that applies it. There are studies that determine that more than 25% of buyers return to take advantage of the promotion. Coupons can lead a company to total success. Well, through coupons, two factors benefit, both sales growth and enhancing the image of the brand.
• Public attention
The first thing to know is that coupons activate the interest of the public. If a brand wants to make itself known, and plans to promote a product, the coupon is the best option. The population, for the most part, takes advantage of the possibility of an offer. And really, who doesn’t like to get carried away by a good promotion? Coupons help to quickly increase the public that owns a business.
•Cash flow
Coupons lead to sales growth. Therefore, the cash flow is greater. Coupons promote the direct entry of cash into the business. Perhaps, the profit of a product in promotion is not the highest. However, by the very fact of being on sale, it is sold in masses and it is here, when there is a resounding profit.
•Customer satisfaction
A business or brand is prosperous when the customer is satisfied. Today, Shoppers are used to receiving sale coupons. Well, this allows them to buy more and spend less. Because of this, companies are already fully involved and committed to offering coupons that the buyer is happy with.
Giving a customer the opportunity to come back and get discounts through coupons leads to their total satisfaction. Therefore, earnings improve.
• Staying in competition
Almost all the existing brands are in full competition to expand their products and exceed any limit. Therefore, the application of coupons for each one is dynamic. Shoppers are constantly searching for the best coupons to help them cut their expenses.
Coupons help companies stay in constant competition. The better the offers, the sales will stay active. In addition, applying coupons to products that do not have as much output, increase their consumption. Coupons motivate companies to continue producing and raising new ideas.
•New products
Brands always consider launching a new product. It is key for a company to launch a product linked to an offer. Coupons help drive and position these new products on the market. A new product attracts the attention of a few buyers. A new product on offer draws attention at the mass level.
The new products with offers, in addition to enhancing profits, highlight the image and brand name. Therefore, if a company wants to make itself known quickly, including a new product with an offer is the best option.
Disadvantages of using coupons in your business
The use of coupons must be done under a strategic plan. Well, excess promotions can generate losses, and at some point, this can be catastrophic. A dynamic but not excessive activity related to coupons must be maintained. Coupons will not bankrupt a company. But if they are not gifted with intelligence, negative results can occur.
• Cost factors
The cost of a product doesn’t just cover the cost of content. The cost of production, the cost of packaging, the cost of shipping etc. are involved in this. Therefore, when applying a coupon, each of the corresponding costs must be taken into account. The promotional adjustment, to be a little above the total cost and below the original sale price.
By ignoring the factors involved in the cost, the coupon target is not met. Well, since launching a coupon to the public requires an additional cost, the budget would not be able to cover all the expenses.
• Imbalance in earnings
The purpose of the coupons is to give the customer a cheap option for a product. It should be taken into account that an offer or discount reduces the profit of the product in its entirety. For this, the company must ensure that the strategic plan is the total impulse of the product. If a product on sale is sold in masses, the profits will be sustainable. Otherwise, a product on sale, which is only captured by some buyers, results in losses in profits.
• Reduction of offers
Coupons may be guilty of lowering the value of your product offers. They are two notable aspects to highlight.
The first factor is the value of a product on offer. Coupons usually have a period. Upon expiration, the cost of a product returns to its original price. This can cause the product to stop being sold in quantities.
A second factor is that the offer of a product can compromise the sale of another product of the same brand. Which is totally disadvantageous. That an allied product stops selling regularly generates an imbalance. This, in extreme cases, could influence the disappearance of a product on the market.