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Discounts Coupons: Know Why And How They Work

Mahima Kalra by Mahima Kalra
6 March 2018
in Analysis
discounts coupons

Image Courtesy: Disk Drill

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We all look for ways to save wherever and whenever possible. This is the reason why around $3.4 billion worth discount coupons are redeemed by shoppers every year on shopping. As businessman or owner of different product and service companies, you can make use of priced promotions and coupons to attract customers and make them purchase and thereby boost sales for a certain set time limit.

Every day we see Latest Indian Discount Coupons of all kinds on display, whether it is food or high fashion. For example, Goibibo Flight Discounts have ensured that the customer gets the best bargain. At the end of the day, it is the customer who is winning. But how do the companies manage to sustain despite offering such huge discounts? How actually discounts work for them when shoppers are spending less amount of money to buy products and services? So to help you out to use coupons and build a marketing plan revolving around discounts you need to understand the science behind it first.

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Gaining confidence of first-time buyers

If the product you have introduced in the market is new, then coming up with coupons and discounts is very much important to attract the new buyers.  Such products are completely new and customers are quite skeptic about spending full price on products that they are not sure is worth the money. On the other hand, when you offer a good discount on such products you actually encourage the shoppers to try it out at least once. Once you learn that your discount strategy has worked well you will be able to bond with the customers and turn them to your long term customers.

People like the word coupons

Whenever people see the word discounts and coupons they actually become happy. As per the study conducted by Claremont Graduate University, taking and redeeming coupons creates higher levels of oxytocin in the body and on the other hand, it reduces the stress level. It is even noted that people are happier receiving a coupon rather than receiving a gift. This works much well in case of brands which are not regular in introducing coupons in the market quite often. Shoppers become delighted and excited when they receive a coupon at a time when they are least expecting it. Some coupons come with minimum threshold and so shoppers end up spending more to use the coupons for good. 

Coupons create a sense of urgency

Mostly the discounts and coupons which hit the market come with an expiry date and this creates a sense of urgency among the shoppers to use it before it gets expired. They feel that if they fail to use it right now then they will lose the chance to get a discount and fail to take its advantage. Again, they want to be sure they are not missing out anything. In case a shopper has missed a good deal in the past it becomes true in their case.

Discounts and promotional deals are expected by shoppers

Do you think discounts work to increase sales? Yes, of course especially during the sale period. Still, if it is not done right it comes with some disadvantages too. Today shoppers expect deals on products they are buying. During online shopping people choose the items they wish to buy and then add it into the cart. After that they start looking for better deals with other online retailers. In case they find a deal elsewhere they will abandon the cart and shop at the store where they found a better deal. If the discount strategy is not well planned it will fail to create the shopping urgency sense in the customers and this will fail the strategy altogether. This clearly shows that it is important to build right kind of promotions to get the best out of them.

Without any doubt we all know that discounts helps to bring in new customers and retain the older ones. This helps to increase the sales. Discount coupons encourage people to buy new products and shop more, thereby spend more. But, it is important that the strategy is planned well to get the best out of it.   

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