While it’s true that people like to save money, there are plenty of people that shop simply because something is being offered at a discount. But this brings up an interesting question, can these discounts be hurting the reputation of your brand?
Can You Offer Coupons Too Often?
Online coupons can be used strategically to bring in more sales. However, going overboard can make it seem to your customers that you are overcharging to begin with. Over time, many of these customers will simply wait until you offer coupons before buying. This will increase the complexity and time to manage the coupons. Even if you have a third party company handle this for you, it will require a time commitment to continually add the coupons that customers expect.
A better way to go is to build up your brand, as one that offers quality, in a way that customers will expect you to price your products accordingly. This is how high-end companies and brands can continually charge higher prices. They offer quality products that often last longer than the cheaper counterparts.
Offer Coupons Strategically
A good use of coupons is to sell slow-moving or discontinued inventory. If your inventory is costing you money for storage and maintenance, the coupons can help draw attention to those non-selling items and generate buzz. By moving these products out of your inventory you make room for items that sell at regular price.
Coupons for Your Best Customers
Another great use of online coupons is to offer them exclusively to preferred customers. These are the customers that are purchasing the most from you, so giving them coupons can help keep them loyal and continuing to buy. The great thing about online coupons is that, in most cases, they can be tracked as to who is using them.
You can decide if you want to let these preferred customers distribute these exclusive coupons to people they know or if you want to ensure that they only use the coupons themselves. If you decide to let them give the coupons away, it is possible to give them further incentives when they do so. Deeper discounts or even cash back are both great ways for this to happen.
It is a delicate balance of overdoing the use of coupons and bringing in more sales. It also depends on the type of products or services you sell. If they are the types of items where perceived value will be hurt by offering coupons, you may want to forego their use. However, if your products can be sold at lower price points without a loss in perceived value, then it may make sense to implement them.