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I have recently bought an yearly subscription of the daily news paper and one of the major deal the news paper offering to its subscribers is a huge catalog of coupons worth over $100,000 which can be used or redeemed for the next 12 months. The coupons are for dining, household items, electronic products, furniture, clothing products, footwear, jewelry and pretty much everything one can think of. I and my wife have kept these vouchers in our car as whenever we are out and decide to go eat somewhere or do some shopping we pull out the coupon catalog from our car and see what kind of coupons we have for that activity. I am my wife have really hooked on to this coupon usage and really enjoying it to the core, last week we bought some t-shirts from Giordano for about $65 and got $20 off leaving us effectively paying $45. This shopping incentive works pretty well in every segment of our spending, creating a win-win situation for both retailers and consumers. From a retailer or brand perspective, discount coupons ensures stock cutting and at the same time consumer gets a good deal for less, its a way of driving higher purchase frequency. It works like therapy for many consumers and feel good about shopping for things and paying less. Many major retailers around the world online or offline confirm that whenever they run a marketing campaign offering discount coupon, their sale goes up by 15% to 20%. A major computer manufacturer recorded higher sales after launching its coupon campaign of $25 off on spending $100 or more. It encourages the consumer to come back and that results in more sales and more revenue for the company. A discount coupon encourages the customer to come to the store, once they are in the store, they get an opportunity to find out about other products and brands and new collection in that store which leads to further interest to purchase something. The downside of discount coupons is that it means fewer margins for businesses. They do little for profitability as they generally offers products and services at or below the cost price. The key factor here is earning consumers loyalty and hope that the consumer will come back next time looking for further discount and end up buying product at full price instead. Largely consumers who only buy using discount vouchers or coupons result in good revenue but less profit. However having said it all, in present economic scenario where there are fewer buyers in the market, many retailers and manufacturers are not looking for making profit, they rather want to survive or see through this tough period by simply surviving and not getting bank corrupt hence discount coupons works wonder for them.
Article Source: http://www.bharatbhasha.net Article Url: http://www.bharatbhasha.net/marketing.php/196958 Article Added on Wednesday, December 16, 2009
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