Discount coupons gained immense popularity and can be used to get financial discount or rebate when buying a product or availing a service. Usually, discount coupons are handed by manufacturer and retailers as well as business establishments as part of their promotional or marketing strategy. Coupons are often distributed or posted though mail, newspaper, magazines, social media and Internet. Sometimes, vouchers are also distributed directly by the retailer or through mobile phones.
Discount coupons play an important role in businesses allowing them to offer products and services to consumers who will shy away due to expensive price tags. Moreover, it gives businesses an edge in markets where competition is great.
Origin of Discount Coupon
The first discount coupon is believed to be offered by global company Coca Cola offering a glass of Coke to help in promoting the drink. It is believed that the company redeemed 8.5 million coupons. The company thought of an ingenious marketing strategy in promoting the products. The vouchers were mailed to potential consumers as well as placed in various publications and circulars.
In Australia, it is believed that Shop-A-Docket offered deals and discounts at the back of its shopping receipts in late 1900s. Since then, the use of discounts flourished and businesses often use this form of marketing strategy to promote their stores.
Uses of Discount Coupons
Voucher Advertising
The primary use of discount coupons is to promote the business and make it well known in the public. Merchants work hard to advertise their new products and services. Voucher advertising has become popular to businesses because of its effectiveness in delivering higher store traffic and sales. Voucher advertising or promoting one’s business through discount vouchers is making its way in the market as consumers love attractive deals and encourage them to buy the product or to try out the service. This strategy proved to be effective and the use of discount coupons in promoting your product or service can largely benefit your business as people are attracted to deals and discounts.
Attracts Consumers
Another advantage of offering discount coupons or electronic coupons is it attracts new consumers. Businesses lure potential clientele by giving them price cuts to their products and services. Sometimes, customers are loyal to their brands. However, one of people’s weaknesses is very low price. This is what discount coupons offer to consumers. Discount coupons drive clients to your stores and will yield to more sales and repeat sales. Studies showed that people tend to buy more when given a discount. This is because they think that they save more and can buy more with a coupon.
Research
Discount coupons and electronic coupons are also used for research, especially in determining the buying decisions of consumers. Moreover, vouchers are also used to know the price sensitivity of different groups of buyers. This can be done by sending out coupons with different dollar values to different groups. Moreover, studies revealed that people who collect and discount vouchers tend to be more price sensitive than those who do not use discount coupons. With this knowledge, store owners can adjust percentage of the vouchers based on the target consumers.
Incur Savings
Who doesn't love discounts? Everyone loves to buy previously expensive items at a cheaper price. Consumers save on discount coupons evident with its popularity. The primary aim of discount vouchers is to make consumers save money. A lot of mothers gather coupons to chip off some bucks from the budget.
Kill Competition
Discount coupons are also used by businesses to gain advantage of its competition by treating its consumers with low priced items or services.
