Sales attract customers like honey attracts bees. It’s no secret that people love discounts and are more likely to buy a lot when offered a sale. However, the balance is not only tilted in favor of buyers. In fact, businesses can also earn more from a coupon campaign. It started in 1887 when a cola giant offered the first coupon. Since then, the company can be called the father of coupons. Learning from his strategy is what allowed other companies to understand the vast merits that the technique offers.
When the first coupon was introduced, it was a BOGO deal that didn’t just mean customers could get more for less. With an increasing number of customers wanting to take full advantage of the offer, retailers required more colas. This boosted the company’s business and fostered its success. In addition, as more people visited the stores selling Cola, the owners of local pharmacies were also enjoying the benefits.
Since then, the use of coupons in marketing has only increased. In today’s digital environment, more people want online discounts that encourage savings.
Wondering how offering coupons can skyrocket sales?
Increase brand awareness
Coupons create excitement. They make more people aware of a brand. More people are likely to visit a site or store that offers a discount. The marketing campaign is something that people not only get involved in; they also talk about it and involve more people. It is how a company can subtly create its presence in a competitive environment. A survey showed that 22% of shoppers were likely to share news about local deals and discounts with others, and 91% of shoppers who used a business coupon returned to visit.
Increase the number of customers and loyalty
When your business offers a coupon or code, customers are more likely to visit. This would not only improve the number of customers, but also customer loyalty. Most companies set sales records by offering monthly, quarterly, semi-annual, or annual sales. As customers learn to expect discounts, they tend to visit more often. By doing so, they often make more purchases at no discount and see what you have in stock. As brand awareness is built, more buyers visit. The strategy works indirectly to improve sales and is a smart move specifically in times of declining financial business.
Reduce costs
Coupons are similar to print ads. As mentioned above, they push brand awareness in a positive direction and also attract more customers. By doing so, they function as advertisements and reduce advertising costs. In addition, they can also help you save more. For example, when an online company offers a discount on paying by cash bank transfers, it reduces the costs incurred in transactions made through other sources, such as credit or debit cards. This money saved equals increased revenue and can be reinvested to generate more sales.
Help free up space
No customer wants to see the same items on the shelves every time they revisit. Likewise, no brand would want to showcase older items. However, throwing old products in the warehouse is often not an option, as that would mean that they will not be sold at all, which has an obvious negative impact on the financial scale of a company. By offering a clearance sale or coupon on items that are slow to reach shoppers, a business can free up space. This freed up space can be used to bring the latest products to customers. Therefore, attractive offers help sell excess inventory, which increases sales by making room for trendy products.
Helps keep up with the competition.
Coupons help smaller brands compete in a world where larger brands rule. The strategy attracts a part of the clients of the largest companies. Take, for example, a new label that is trying to raise its head in the competition. A coupon campaign would attract customers and improve sales as shoppers are offered similar products at better prices. In another situation, an established brand can keep up with other brands in the same niche by offering discounts to keep their customers instead of losing them to a company that offers better prices and discounts.
Allows a company to plan better
A coupon campaign allows a business to collect customer data. By studying the characteristics of the buyers that are attracted, the company can better plan future marketing campaigns. It gives a company a clearer idea about its target audience. This improves sales as a company does a better job of marketing, which is one of the pillars on which it is based. Therefore, upcoming offers and products offered may be better suited to meet the requirements of this particular customer segment to make sales.
In short, coupons and promotional codes are a quick way to improve the performance of a business in the sales department. Specifically, internet marketing. They attract more customers, help you compete better and therefore increase sales.
