Coupon Site Advantages & Disadvantages

Posted on | May 23, 2008 | Comments Off

There is quite a bit of thought around how effective coupon sites can be for a business. The main thing to keep in mind is that it really depends on what you’re selling. Some product categories are very coupon driven because of price sensitive customers that like to switch between brands simply due to promotions being offered. Other product categories create quite a bit of brand loyalty.

In the event that you are in the first category then there are quite a few advantages to using coupon site. One is that you can use these coupons to create brand awareness leading to brand differentiation that may reduce future product switching by consumers. Another advantage during this is that coupons can maintain unit sales volumes if you are in an industry with lots of fluctuation between brands.

Another advantage is that the shorter lead time for online couponing compared to traditional print couponing allows a business to better respond to competitive or sales volume pressure. Online coupons are much more effective than other ways as well as more and more U.S. households stop receiving Sunday papers.

A final advantage is that you can use coupons to gather consumer information. The cost per response in this instance is generally much less that many other methods. Beyond that your respondents are more qualified because they want the product you offer.

One of the disadvantages is that online coupons are sometimes limited to particular stores or a particular item in your store rather than being able to be used anywhere or for multiple purchases. Another disadvantage is that people have to print them out. Many households don’t have that capability and this can be a deterrent.

Additionally, there may be too many steps to claim the coupon, making it not worth the effort in certain consumers’ minds. If you are using a discount code and the person has to enter it in a website to shop online they may just give up and buy from a competitor with a lower pre-coupon price.

Finally, more people are likely to use online coupons for online purchases. It may be harder to encourage use if you’re trying to get consumers to use your coupons in brick and mortar stores.

The bottom line is you have to know your market and target them well. If you offer something valuable that makes it worth a consumer’s time and effort then they will use on the coupons they find online.

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