“Why Coupons are a Business’s Best Friend”

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"Why Coupons Are A Business´s Best Friend"

Sophia Xu
Updated: October. 23, 2023 

Coupons are a popular marketing tool used by businesses to attract new customers, retain existing ones, and increase sales revenue. Here are some reasons why businesses sell coupons:

1. Attract new customers: Coupons can be used to entice new customers to try a product or service. According to a survey, 60% of consumers are likely to try a new product as a result of a coupon 1. By offering discounts, businesses can encourage potential customers to take the plunge and try their products.

2. Increase customer engagement: Coupons can also be used to engage existing customers and encourage them to make repeat purchases. By offering discounts on future purchases, businesses can incentivize customers to return and buy more 1.

3. Sell excess inventory: Coupons can be used to sell excess or unwanted inventory that is taking up space in the store. By offering discounts on these items, businesses can clear out their inventory and make room for newer products 1.

4. Boost brand loyalty: Coupons can be used as a reward for loyal customers. By offering discounts exclusively to existing customers, businesses can show their appreciation and encourage them to continue buying from their store 1.

5. Cost-effective marketing: Coupons are a cost-effective way for businesses to market their products and services. They can be distributed through various channels such as social media, email marketing, or in-store promotions 1.

However, it’s important for businesses to develop a strategy when introducing coupons since they can lead to lower profit per sale despite generating new revenue 1. It’s also important to ensure that the coupon program does not cannibalize existing revenue before the coupon program 1.

In conclusion, coupons are an effective marketing tool that businesses use for various reasons such as attracting new customers, increasing customer engagement, selling excess inventory, boosting brand loyalty, and cost-effective marketing.