Business Guide: How to Use Discount Coupons to Maximize Your Profits

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30. Jun 2021
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Business Guide: How to Use Discount Coupons to Maximize Your Profits

Many instances come when online merchants have to make decisions on whether they are ready to offer discounts, what discounts they can offer, when they should offer discounts, and how much their discount offers should be worth. Discount coupons can be a very powerful tool to increase sales, drive traffic to your business website, and propel customer loyalty. But when used the wrong way, they can be pretty devastating too.

In this guide, we will discuss the pros and cons of discount coupons, who you should offer your discounts, and how to use your discount coupons to drive sales and customer loyalty.  

Pros and Cons of Offering Free Discount Coupons Online

Online shoppers love getting discount coupons no matter the time of the year. Thus, offering free discount coupons online allow your business to increase conversions, move your stock quickly, meet sales goals, and increase customer acquisition and customer loyalty as well.

However, like every other thing, discount coupons also have some cons. For instance, your profits will decrease and you might experience little conversion outside sale periods as you slowly train your customers to wait for discount coupons. Thus, such offers also have the potential of damaging your brand up to some extent.

Nonetheless, it never means that you stop offering discount coupons. You should offer free discount coupons online but by using the right strategy.

Who should you offer your discount coupons to?

Before you start offering discount coupons, you should think about your overall branding strategy. If you want to position yourself as a high-end brand, it is better to stick with discount coupons designed for loyal customers rather than offering weekly sales. The same is true in case you have slimmer margins.

On the other hand, if your margins are greater, you can go with higher discounts and weekly sales to hit your goals. Building an online business and a large customer base is not something that you can do within days or a few months. It will involve a lot of thoughtful experimentation to understand what discount strategy works best for you and what types of customers respond the best. For that, you need to determine a goal for every sales campaign and discount offer and start measuring results.

How to use your discount coupons to drive sales and customer loyalty?

There are a variety of ways you can use to offer discount coupons to enhance your lead conversions, customer acquisition, and customer loyalty. Some of them include weekly/monthly discounts, prelaunch offers, holiday and seasonal offers, referral offers, customer loyalty offers, event attendance offers, minimum purchase discounts, and customer milestone discounts.

  • Weekly and monthly discount coupons help drive conversions and increase revenue.
  • Prelaunch offers allow you to drive traffic and pique interest among your existing and potential customers.
  • Holiday and seasonal deals are what you should never miss because they offer a huge potential to grow revenue.
  • Referral offers help you leverage the power of your existing customers to gain new customers.
  • Customer loyalty discounts help you avoid losing your loyal customers to your competitors.
  • By customer milestone and minimum purchase discounts, you can encourage your customers to purchase more and feel good.

The one thing you must ensure that the sites you use for posting your free discount coupons online must be authentic and don’t make your customers feel unsecure while doing online shopping.

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