The coupon codes are an excellent tool for the growth of business. This is the reason that these days all the companies are using them for their benefit. Coupons or promo codes help to bring new customers to the company and keeps them loyal to the company. Selecting the coupons is a herculean task as they are a good tool but it can also hamper your business rather than helping it to grow. It can give a set back to your firm that may be fatal to your company. You need to analyze the pros and cons of coupons before committing to the audience.
Firstly what are coupons?
In e-commerce and online shopping a coupon code, or promo code is a computer generated code, consisting of letters or numbers or a combination of both that enters into a promotional box on a site’s shopping cart to obtain a discount on their purchase. As defined in the above lines it shows that it is unique code so to use it special rules or method has to be applied.
SoftoCoupon.com states that there are certain stereo type mistakes that one commits while using a coupon code. It is important to avoid them if you want to derive utmost benefit from these coupons. Here is a list of the mistakes that you should do away with while using coupon codes:
1] Unable to comprehend the cost of consumer acquisition- Customer acquisition is a fundamental aspect of the coupons. It is the driving force for the campaigns for the Coupons Monk. It is the cost or investment that you will require to incur in order to gain the customers. You have to consider the suitability of the cost of acquisition that you need to incur. The financial position of the company plays a vital role in deciding the cost of acquisition. You have to be very careful in choosing the amount; setting too high amount will harm the financial condition of the firm. If you decide on prices that are too high it will land you in a situation where you would be paying too much for advertisements. You have to consider the pros and cons of price of the offerings before you make the offer.
2] Offering a steep discount- Before setting the amount of discount you should do thorough calculations. Always ascertain a percentage of premiums that will be suitable for the finances of the company. Consider the financial conditions of the company before deciding the figure of discount. Huge discount will attract the customers but strain the shipping and sales department, and curb their performance. So arrive at a figure that does not hamper any of the department and the company on the whole.
3] Offering unlimited discount- If you intend to give discount store wide then make sure that you provide discount to limited number of users. If you do not regulate the number of users it will hamper you as the customers will tend to take too much of your advantage buy more products than expected. This may lead to high sales but the ultimate profit will be less. Giving too much of discount will empty your stock. If this occurs then it will have negative effect on your firm. Unlimited discount is apt for old stock where you want to discard the stock so unlimited discount is feasible. However in general unlimited discount is not beneficial for business as it will result in more expenses to the firm than anticipated.
4] Not offering a good enough discount- This is a thin line if providing too much of discount is bad but even not providing substantial discount will not serve the purpose. You may lose your clients leave alone getting the new clients if the discount presented by you is not lucrative enough. If your competitors are providing better discounts then you then it will result in their switching away from you. It is a hit and trial thing till you get your best deals and determine the best discount for you. It will take time and resources to find the apt discount amount that will ensure good profits to your company.
If the above points are considered while planning coupon deals and discounts you can get the best deal.