Love them or loathe them, but as a business owner, you simply cannot ignore the coupons that are a necessary evil for your success. A study by UK coupon site Wikigains shows that over 95% of the consumers used some kind of coupon for shopping in the last 90 days. In 2012, JC Penny tried to break the coupon habit and their business saw a drop of 23% in the first quarter. So, if JC Penny had to bend down to the supremacy of coupons, you should too not try to challenge its popularity.
In this article, we will not just talk about how to use coupons strategically for business. We will also tell you how to use coupons for your business without giving up your profit margin. First let’s take a look at the common challenges faced by most businesses.
What Are The Challenges Faced By Businesses
The biggest downside of using coupons for your business is that it will cost you money. Any type of discount means that you are letting go a part of your profit, so less money comes to the pocket. The catch here is to calculate what difference that discount brings to your total profit margin by introducing new customers and bringing back the old ones.
After offering coupons for a certain period, it is important for any business to do a quick math to see how effective and worthwhile it is for you. Unless you evaluate the impact of offering coupons on your business, it will be difficult to determine whether or not it is helpful.
Another challenge is to ensure that you regular customers do not get into the habit of waiting for coupons in order to purchase. Thus, it is important to not overdo couponing or jump into the bandwagon without any thought. A proper analysis of the market and your target consumers can help you devise a coupon strategy that promotes growth without adversely impacting your business.
Wikigains Explains Why Coupons Are Good For Your Business
Despite some challenges, coupons are a great tool to get your brand identified and draw new customers to your store. It can also be used to promote a new product line or clear off the old stock in the warehouse. Coupons may also be used as an incentive to encourage people to try a product or brand that offers ore value or profit to your business.
When used correctly, voucher codes may be used as a means to connect with the old customers. By offering exclusive coupons to the loyal customers, you can reward them for being loyal to your business or store. If you are consistent in offering coupons, you will have more followers and fans in your social media page looking forward to them.
According to voucher experts from wikigains.com, the key lies in using coupons as a means to expand your customer base. Include it as a part of your social media marketing and measure the results of every campaign. A good way to benefit from a coupon campaign is to ask customers to provide their name and email address before issuing a coupon.