The Challenges of Coupon Management
Coupons are an indelible part of our retail landscape.coupons Whether they're clipped from Sunday papers or downloaded from retailers and restaurant chains' apps, coupons remain a powerful tool for shoppers. In fact, two-thirds of consumers will make a purchase they weren't planning on making solely because they found a coupon for it, according to a recent survey.
But despite their popularity, coupons still pose challenges for business owners.coupons The way in which they influence consumers is complex, and their value for both buyers and sellers is not always clear.
A coupon is a piece of paper, a digital code or a plastic or digital voucher that can be used to get a discount on a product or service. They're used in both physical and online stores, and can be used to reduce the total price of an order or to waive a shipping fee. Coupons can be a great way to attract new customers, as well as to reward loyal ones.
For example, the Coca-Cola Company distributed handwritten coupons in the late 19th century that were good for a free glass of their new drink. This was a highly effective promotional strategy, and it helped to launch the brand into widespread recognition and success. It also set the stage for the future of coupon marketing.
Coupons can be costly to issue, however, and they don't always provide the most accurate picture of how much a customer will spend at checkout. When a coupon is used, a retailer must subtract the value of the coupon from the order, which could be more than what would have been spent without the discount. This can cause discrepancies in the bottom line, and may require more rigorous analysis to ensure that coupons are being used in the most cost-effective manner.
Similarly, many coupons are based on a minimum spending amount, which can be tricky to manage. Smaller orders are often better suited for fixed discounts, like $5 off $25, than percentage discounts, as the percentage amount will likely be minimal for such a small order. Larger orders, on the other hand, can benefit from increasing the total to meet a minimum spending requirement in order to receive a larger discount. If done with caution, this can be an effective strategy to reduce overall spending.
Moreover, some coupons are specific to the product in question, while others can be used at any store that carries that brand. This can make it difficult for a consumer to figure out the value of a coupon, and can lead them to spend more than they intended to in order to save money with it. To help with this, consumers can use price-comparison websites to learn how much products typically sell for and to understand the true savings potential of a coupon. By becoming a smarter coupon user, they can cut their spending and still have enough money left over to meet other financial goals. This can be especially helpful for people who are saving for a major purchase, such as a home or car.