Coupons can attract new customers, increase existing customer engagement, and generate new revenue. Physical coupons can be introduced in your store, whereas digital coupons can be distributed via marketing messages on a company website or social media promotions.

According to estimates, 60% of consumers will try a new product as a result of a coupon, while 46% will change their planned purchase. Coupons, whether designed to entice a customer to visit a physical store or a company's website, can be an effective way to increase sales revenue. But if you give coupons to your customers, you need to have a plan because they can lower your profit per sale even though they bring in more money.

The Benefits of Using Coupons in Business

Offering coupons has the advantage of introducing new customers to your store or website. Coupons can also be used to introduce new product lines and assist in the sale of excess or unwanted inventory in order to make room for newer products. Coupons can be strategically used to encourage customers to purchase a new, more profitable product, thereby increasing your profit margin. Coupons can also keep customers coming back by giving them a discount as a reward for continuing to buy from your store.

Email Marketing List

In today's digital world, one way to maximise the value of coupons is to use them to build a social media marketing (SMM) strategy. For example, you can ask each customer to give you their email address before sending them a coupon.

A long-term marketing strategy can be developed over time by developing an email marketing base that can be used to encourage repeat business, offer new products, or for other marketing campaigns. If your coupon is not available online, they will need to give you their name and email address to use it at the register.

Social Media Pages

Another effective way to distribute coupons is through social media platforms such as Meta (META), formerly Facebook. On your Facebook business page, you can offer discounts and coupons. Customers can use the coupon both in-store and online. You can also add an expiration date to create a sense of urgency and get new or existing customers to use the coupon code to buy your product.

Your company page can also be used to promote products and events, as well as communicate with customers. You can strengthen relationships and better understand the needs of repeat customers by frequently interacting with them, offering discounts, or sharing news. According to estimates, 55% of consumers believe that businesses that offer coupons and discounts create a more favourable impression of the store or its brands.

The Drawbacks of Using Coupons in Business

The most significant disadvantage of using coupons is that they cost your company money. Any discount you provide results in less money in your pocket. The key is to determine whether that discount will increase your profit margin by bringing in new customers or bringing back old customers who may have gone elsewhere in search of other coupons.

Existing Revenue is Cannibalized

Even your regular customers may develop the habit of waiting for coupons, which cannibalises revenue generated prior to the introduction of the coupon programme. To avoid affecting your existing customer base, you should consider when and how to offer those coupons.

Profitability has been reduced

Coupons may result in a lower profit on the item or items included in the coupon campaign, but the cost of production remains constant. So, it's important to think about how much a coupon campaign is worth to the business and whether the discount will bring in enough new sales to cover the cost of the campaign over time.

Particular Considerations

When developing a coupon strategy, consider how you intend to use it to boost your bottom line. For example, if a coupon drives customers to your store, they may buy other non-discounted products as well—a common strategy used by grocery stores. The coupon could bring new customers to your store, which would let you keep in touch with them over time through social media or email.

Customers who haven't visited in a while may be enticed to return with the coupon. Using a good marketing database, for example, you can send a coupon to customers who haven't visited in 60 days or more.

Where Can I Find Coupons?

Paper coupons are frequently distributed through the mail or via coupon catalogues, and many retailers include coupons with each purchase to encourage repeat business. Also, a lot of online stores such as Askmeoffers use coupon codes to get people to follow them on social media.

How Are Online Coupon Codes Created?

Many online storefronts include the ability to issue and redeem coupon codes. Askmeoffers, one of the most popular web platforms for online shopping, for example, has a straightforward interface for managing coupon codes. Other platforms' procedures may differ.