Increasing sales revenue is every retailer’s end goal for their business. This is why they adopt various strategies to attract customers to their products. These strategies include the use of coupon codes along with other strategic steps to increase sales revenue. According to search surveys, around 90℅ of people who shop online use coupons in some way or another.
Before you start using coupons for your business, you should know what are the advantages and disadvantages, pros and cons of using them. We’re going to discuss these pros and cons further so that you can decide wisely and accordingly.
Pros
Following are the pros and advantages of using coupon codes for your retail business. If you use them the right way, they can bring several advantages to your business.
Help Build Your Customer Base
If you want your business to advance, building a customer base is a crucial step. And if you want to build a solid customer base, you’re going to need to offer your customers something valuable. Customers are likely to buy the product if they feel that they have saved money.
Sometimes, people even make up their minds to buy a product once they see the coupon which they were not going to buy at all beforehand. This not only leads your existing customers to make more purchases but also attracts new customers to your business. This way, more people are introduced to your business and you build a strong customer base. An increasing customer ship increases conversion rates and consequently increases sales.
Build Your Email List
By offering coupon codes in return for the customer’s contact information, you get a chance to build your email list. This way, you get a steady data base of customers’ information where you can contact them. You can send them new product information, promotions and discount codes etc.
There are multiple softwares available that let you design cool, colourful and attractive subscription forms for your website. You can choose the width, background image, font, colour etc for your subscription form. These forms can be in form of short pop up windows. Try to make simple, colourful designs that will attract customers and get them to sign up. Make sure to make the discount offer prominent.
Collecting customers’ emails is important for increasing revenue because this way the customers stay in constant touch with you. You can easily send them information about new offers and attractive promotions etc.
Increase Brand Awareness
When people see all the benefits a brand offers to them, they talk about it. You should use this to your advantage and present your customers with such attractive offers that make them talk about it with their relatives, friends, acquaintances, colleagues etc.
With the help of discounts, you can use the opportunity to make your brand known to more and more people and make them your customers eventually. So just create an enticing offer, put it in the right place for the customers to see and watch your revenue grow. You will see you are generating more revenue because you are meeting the expectations of your customers by constantly supplying them with great, hard to miss offers.
Help Bring In Newer Products
Running a business is a complicated thing and you need to pay attention to all aspects. One aspect is realizing that how much room each product is occupying in storage, how much promotion and coverage it is getting and how sooner or later it gets sold out. Using coupons and discounts on some products helps sell them faster. This makes room in the inventory for more newer products.
Organization is a crucial aspect of business and you need to take steps strategically to improve your business. Some products are hard to sell for some reasons. If you add coupons with them, you will encounter the not selling problem significantly less.
Bring Customers Back
For your already existing customers who have not been to your store in a while, coupons and discount offers will help bring them back to you. If you have adopted a good marketing strategy and have gathered the emails of your existing customer ship, you can send them Fantastic Voucher Codes and discount offers via email to intrigue and entice them. When they return, it is likely that they will make some new purchases too.
Hence, do not forget your already existing customer ship as they can still help you increase revenue. They can even still help bring more new customers to your store by talking to their friends, colleagues etc.
Cons
There can also be certain disadvantages to including coupon codes. You should take a look at the following and decide for yourself whether coupons are more advantageous or disadvantageous.
Reduced Profits
When you offer coupons with various products, it means that you are offering those products at lesser prices to your customers. This may take money from your pocket as your profits will be reduced. There are always people who are going to buy things without discount codes so adding discounts may prove detrimental to you in this sense.
However, you can create balance by rightly determining which products need coupon codes and which products don’t. You should include coupons with such products that bring better to your business than bad.
Decreased Conversions without Sales
If you often use coupons, people can develop the tendency to buy your products only during the period when the sale is going on and prices are reduced. You will notice a decrease in conversions when you take the coupons off so you need to avoid that and keep your conversions growing all the time. The customers can easily develop a habit of waiting for coupons and this will negatively affect your revenue. Hence, you need to design a strategy as to when and how often you offer coupons and discounts to your customers. You need to carefully build your business around such a model that meets your customers’ expectations. And also does not let them create habits that are disadvantageous to your business.
Affected Perceived Value
People tend to think that the more expensive a product is, the better the quality is. Offering coupons all the time can make an impression that your products are not top quality. This will negatively impact your business. You need to ensure the great quality of your products all the time and offering coupons can make your customers think otherwise.
Can Affect Regular Customer ship
If you are offering coupons and discounts to your first-time new customers, it can make your regular customers feel alienated. Hence, you need to take care of your loyal customers and make sure you offer equal opportunities to new and existing customers. This way, no one will feel left out and will have built a solid customer ship of both new and existing customers that are loyal to you.
