5 Unknown Pros and Cons of Coupons for your Business

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Statistics speak in the favor of coupons. RetailMeNot, a competitive coupon-providing website reveals that 96% of consumers use coupons. Put your feet in the shoes of the customer; are you more likely to buy a product for $120 or would you rather wait a few months and bag it for 50% off? Unless it’s a perishable item, we bet the majority would pick the latter option. And even in the case of food and other non-durable items, the average customer tends to prefer value over other factors.

Consumer behavior is hugely impacted by discount codes. Consider a man who is trying to save money and has vowed to not shop in the current month. When this man sees a product that has been on his to-buy list for half price, is he going to follow through with his promise? Not likely. While offering coupons comes with obvious perks, turn the table upside down and you’ll see the flaws in the strategy too. The question stands; is couponing the right policy for your business?

To make the decision easier for you, let’s run you through the pros and cons of couponing. Let’s start with the demerits.

Cons of offering coupons

While offering coupons is beneficial for the customer, is it helpful for your business? It can be that your customers’ savings are directly proportional to a decline in your revenue. While the use of couponing has gone up drastically, it’s not sunshine on both sides always. Here are some cons of couponing that you should be aware of before jumping into such a discounting strategy.

1. It can chop off your profits:

It is crucial to assess your revenue and how it may be impacted by offering coupons. Diving into this ploy can attract new buyers, but it can also reduce your profits. Because customers who could’ve bought the same items at regular prices also get to avail discounts.

2. It can spoil customer habits:

When your company offers a coupon, your customers start expecting that you would offer another coupon as well, if not immediately, then eventually. This disturbs your profits even further as regular customers avoid shopping waiting for the opportunity of bagging products at discounts. 

3. It can reduce the value of your products:

Customers' psychology works like this; the more expensive the product, the better it's quality. Offering coupons reduce the prices and hence, also takes the value of the items down which is not something that you want.

 4. The positive impacts may not last:

Even if offering a coupon brings in more customers and gets people talking about your brand, the hype can also fall as fast as it rose. Perhaps those new purchasers were only attracted to the deal and won’t stick around for more. So, in the long run, the overall impact may not go in your favor.

 5. It can cheapen brand image:

Another con of offering coupons is that if you fail to craft a suitable strategy for it, customers can slam your brand for it. For instance, if you only allow them to buy selected items with it, which are either unfashionable or lacking in some other way, customers are let down which can have an adverse influence on your brand’s image.

Pros of offering coupons

Studies show that the use of digital coupons is on the rise. So much so that by not offering a coupon code, your brand misses out. Coupons have been a tool to bag discounts since their inception. They help customers save and there’s nothing more than that they can want in a world where the prices are only climbing higher. That said, here are the pros of couponing for your business.

1. Can make for a solid marketing strategy:

Online buyers can be held in place for developing a customer base by offering coupons following a clever marketing campaign. You can ask customers to enter their email and like your social media platforms for availing the coupon. That way, they are more likely to revisit for shopping.

2. Attracts new customers:

Offering coupons can bring in new customers. According to a study, 78% of people who don’t normally make purchases from a brand are inclined to do so when a coupon is offered. When these customers visit your store to redeem a coupon, they’re likely to buy products that aren’t part of the offer too!

3. Creates brand image:

When you offer a coupon, your regular customers are likely to inform their friends and family about the stellar deal that is being offered. This gets people talking about your business. This, in turn, can help increase brand awareness through word of mouth.

4. Sells inventory that wasn’t selling otherwise:

Offering coupons can also help make room for new stock. If your products have been taking place on the shelves for a long time now and you need to introduce new goods for whatever reason, coupons can help clear up space and sell items that have been hard to sell.

5. Gives your brand an edge over the competition:

These days customers have come to expect coupons. They wait for coupons and choose their shops based on which one is offering discounted prices. When your brand offers a coupon, it doesn’t only make existing customers spend but it also brings in new customers who normally shop for your competitors. By offering lower prices you gain points over your competition.


With how common couponing has become, offering coupon codes is essential for the success of your business. The pros of couponing can easily outweigh the cons provided your marketing strategy is designed intelligently. Don’t offer coupons too regularly or too stringently. This reduces the value of your products and cheapens brand image, respectively. To ensure customer loyalty, require their email and support for your brand’s social media accounts.

In brief, couponing can bring in profits if it is not overdone and done smartly. Do you have any other pointers in mind? Tell us in the comments!

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