Coupons are a healthy way to promote business. It helps in engagement with the customers, not to mention they attract new customers. However, with its advantages come some disadvantages, so let’s learn a little about them.
We shall learn the delicate balance of promoting coupons without having them overpower the business.
May Not Attract New Business
Discounts carry the ability to influence the perceptions and quality of the business or products. The promo codes on high-priced products eliminate the exclusivity that comes with the price tag. Therefore, if you are selling discounted, expensive products, it may build brand loyalty. However, be prepared to lose some high-paying customers. The high-priced products may feel inferior upon discount.
Promo codes require a certain balance to work properly. You may offer discounts on previous collections to get rid of the idle stock. Offering discounts on the latest collections may hurt the business in more ways than one.
Repetitive promo codes do not sit well with the customers either. It perceives that you are taking unfair advantage of the customers’ ability to pay by over-charging them. On the other hand, it also creates a dent in self-confidence that you can only shop there when the prices are discounted.
The result is obvious! The customers will refuse to pay after availing of the first few discounts. They will most likely wait for coupons or discounts to become active and then purchase.
The practice will result in an uneven sales cycle, which is not beneficial for any business. Customers will only visit shops when the coupons are valid.
Customers lose faith in the services and products if a business continues to offer coupons repeatedly. The repetitive discounting will make the business seem unreliable to sell goods and services of subpar quality. And once the perception grows, it may be challenging to maintain it.
Difficult To Manage
We suggest adopting the practice of Lowe’s coupons, where they are distributed once a week to maintain the business’s credibility. The coupons expire after a short time, so the customers are motivated to use them as soon as possible. It keeps the business in the social circle and results in free publicity.
No doubt coupons are incredible in generating promotion and interest in the business. It is advantageous to create brand loyalty which will benefit the business in the long run. However, you may want to manage it properly.
That’s a Wrap!
You may want to consider alternatives rather than offering coupons. Offer a trial service or a gift with purchase to promote the business. It will reduce the burden of providing discounts barred by the business at the end of the day. You must minimize burdening the business with financial crises and find non-monetary ways to promote the business.
Coupons are a fascinating means to communicate with customers. However, it is effortless to go overboard with it. They can be very successful, but we suggest interacting with the customers to build a long-term relationship.