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Should your company offer coupon codes?

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Your company has developed a new product and your marketing team is trying to sell as many items as possible through the company’s website. The product does not sell as you expected, and this leads to one of the team members raising an idea…

‘What if we offer coupon codes to reduce the purchase price of the product? This can be a perfect way to ensure that more customers buy the product’

At first, this can be a debatable idea. There is no denying that offering a discount on the product will help increase the number of purchases, but if your promotional campaign is not effective enough, the profit will decrease over time or worst still, you may end up in losses.

By issuing incentives, you will be giving a better deal to your customers than what they would receive anywhere else. As much as this is a good thing, it can only work better if the discounts are offered to people who didn’t have any plan of purchasing the product from your store.  Coupon codes can still be issued to every customer without exception, but then, the average profit per customer will reduce. Besides, you will also have issued the discount on customers who would have purchased the product either with or without the discount.

So what approaches can you implement to ensure that coupon code discounts achieve desired results?

Target potential customers

There is probably a potential customer who is unsure of whether to purchase the product or not. Issuing coupon codes is one great way to sway them away. Among the strategies that you can use to target this group is by contacting them when they leave the store without making a purchase. You can tell them of the special offer they would benefit from by purchasing the product. This is a perfect way to ensure that you only target potential customers, rather than everyone else who visits the store.

Ensure customers return

The more you increase your interaction by offering coupon codes, the higher chances that you will earn customers loyalty.  If the customer makes an order, you can email them a coupon code to offer a discount on their next purchase. You can even go an extra mile to print out a ‘thank you’ note and drop it in the customer’s order. Most customers will be happy to receive such a surprise.

Create a sense of urgency

At times, a customer may be watching your advert thinking ‘this product looks great, but I will purchase it later in the month’. How can you ensure that the customer adds the product to their cart before making an exit? Well, you only need to offer a discount with a limited expiry date. The customer who would have made a purchase later in the month will have to buy the product if the offered discount expires after a week.

Offering coupon codes is a perfect way to drive traffic to your business. You only need to develop the strategies you come up with when issuing the codes for you to know how the strategy will attract more customers while retaining your existing customers.  You can use EasyPromos as your coupon maker and increase visits to your point of sale.

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