A company uses a great amount of time to develop the most perfect product, after which all of their focus shifts on selling as many products as they can. This is exactly where promotional codes or coupon codes come in. Discount codes will inevitably help in the sales of a product and increase the chances of acquiring potential customers. However, if the necessary thought is not put into the promotional campaign, you may find yourself at risk when it comes to profit levels.
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Coupon codes can be a great way to increase your customer base, in the sense that you may use them to bring those people into the fold who wouldn’t have been your customers otherwise. If a company is giving away free coupon codes to everyone, it’s basically giving away money.
Here are four brilliant ways in which a company can use coupon codes.
Reward Facebook fans
Do not give away coupon codes to everyone. If there is a new product or service that you want people to try, just tweak your Facebook page. You may also use a third party app to determine your top loyal followers. This move could help reinforce the loyalty of your customers. This tactic helped a restaurant in Arizona, USA take off successfully from the ground. So start incentivising people on your Facebook fan page by displaying coupons to them.
Reward new customers
One way to increase the above mentioned loyalty of your customers is to provide coupons codes that automatically apply discounts on their first purchase. You do not necessarily have to let them know that a discount is one their way. A sweet element of surprise is a great tactic to secure a lifetime of customers.
Getting rid of inventory
This is a clever way of giving out coupon codes without hurting the brand and without having to bear any consequences later on. If you have a product which won’t move out faster or which customers might be hesitant to buy, ship them out as coupon codes. A lot of indie brands and small ecommerce sites use this tactic, where they create coupon codes to ship these particular items when a certain amount of money is reached in any order.
Everyone likes some free goodies, and doing this will ensure that you kill two birds with one stone. While it secures faith and goodwill among customers, it won’t make you recur loses as well.
Distribute through partners
Using this mechanism, companies can provide special discount offers to their partners which they can distribute to their audiences. You can set a time-based deadline or quantity-based limits to reap the best benefits. Also, do not forget to provide those partners with benefits and commissions acting as an incentive to keep them interested in promoting your business.
For any new company, using the scheme of discount and coupon codes is the easiest way out. But remember to take these steps very cautiously, lest they should result in drastic fatality for the company at large.