They say, one man’s gain is another man’s loss. So, when a customer makes use of a coupon code, he is gaining by saving a sufficient amount. Does that mean it is the business that ends up on the losing side?
The answer is in the negative.
It’s true that the business will lose a small amount every time someone makes use of a coupon code, but looking at the advantages, the loss is worth every penny, especially for businesses having online stores.
Following are some wonderful benefits of coupon codes for online businesses.
- Special offers or daily deals websites (e.g. selectaware.com) get tons of traffic on daily basis. By offering discount codes, you can get featured on some of these portals and get instant exposure.
- Many niche forums and online communities (e.g. web hosting forums) have separate sections for businesses offering special discounts or bargains to their members, getting mentioned at these forums can bring in lots of targeted traffic with a strong likelihood of conversion
- Sales and price cuts have been a time tested method for new businesses to grab the attention of customers, and gain some footing in the markets with lots of competition
- Offering discounts or freebies is probably the most effective method for small businesses to tap the power of social media. People will be sharing the deals or discount codes with their contacts, resulting in a lot of free promotion
- If you are looking to create some buzz for your business in the blogosphere, special offers or discount codes can be of great help. You can get in touch with relevant bloggers, offering special discounts for their readers or subscribers, and many bloggers will be happy to share this offer in some of their posts or newsletter
The Action Plan for Businesses:
Remember that coming up with a special offer is only the beginning, and there’s a lot of work to be done. You need to reach out and attract a good number of customers; otherwise the promotion will fall flat. Here’s how to make the most of discount pricing strategy …
- Choose the right time for offering a special deal. For example, if you are dealing in gifts or garments, you can choose the Christmas or valentine season to introduce a special offer.
- Make the most of social media platforms like Facebook, or Twitter. That doesn’t mean you should post a discount code on your own FB page and relax. Instead you need to start working on your plan even before the launch. Get in touch with power users (people with a lot of following) and try to make good connections. Once you have made good contacts, it’s the time to make an offer. Chances are that some of your contacts will share or re-tweet, resulting in a lot of exposure.
- As earlier suggested, get in touch with relevant bloggers. Again, building some good relationships in advance can produce much better results.
- Last but not the least, post your bargain deals at special offers or coupon code websites. A simple search at Google will reveal many coupon code websites; you can choose the best ones according to your targeted market and desired location.
- A word of caution, do not try to trick consumers by pricing the products higher than the average market price, to make sure you are still earning good profits even after the discount is applied. Remember that you are looking to turn these customers into long term clients and any kind of trickery can backfire.