6 Pros And Cons Of Discount Codes For Online Shopping in 2023
Based on numerous surveys, the vast majority of customers, but also owners of retail and online stores – claim that discounts are the best sales tactic. You might wonder if discounts are really that good – and if so, why doesn’t everyone constantly use them? There are many reasons why some companies avoid them – and in this text, we will emphasize some of the pros and cons of discount codes for online shopping.
Discounts: Bait For Both – Buyers And Sellers
The price of the jacket you want so bad – is now 30% lower if you use a coupon or code. Did you feel your blood flow the moment you saw that? The desire to buy a jacket is greater than ever, and it is there on sale – with only 3 days left to use a coupon. You can’t control the excitement, and you order it online. Discounts that evoke these emotions, and made you purchase the item – are actually the third main motivator of shopping. At least, that is what almost half of the respondents from the numerous studies claim. But are coupons always good for us – or do we become victims of our own impulsiveness when it comes to shopping? Also, the question arises as to how cost-effective discount codes are for the sellers themselves. We will try to answer these and some other questions. Therefore, we suggest you see which 6 pros and cons of discount codes for online shopping.
1. Pro And Con: Raising Brand Awareness With Discounts
One of the real goals of a discount can be to raise brand awareness. Then discounts add value to the brand – and one way to achieve this is very simple. If users are asked to first share your post or link to your site on a profile on one of the social networks, and in return receive a coupon with which they will achieve better the price – then your brand gets a whole army of people fighting and promoting it. Another way is to provide a discount on referrals – meaning to those who recommend your product to a friend. Thus, in addition to spreading brand awareness, the number of loyal customers who advertise your brand will also increase – and they should be rewarded with discounts.
From the customer’s point of view, any discount can be beneficial. It is only important that you stay in control when it comes to shopping. Numerous offers that can be found on specialized sites such as grabatt.de, can offer you discount coupons and codes of various brands – but also services that you may need. These are sites where you will find discounts that can sometimes be more than tempting and worthwhile.
2. Pro: Discounts Due To Stock Depletion
One of the reasons why discount codes and coupons are beneficial – is the emptying of stocks and the sale of obsolete products. Yes, in many webshops, stocks are unlimited from the user’s perspective – but this can certainly be presented and announced in the campaign as if they are limited. As we can see on websites such as reductiondiscount.fr, limited editions can achieve a lot. With the effect of the reduction, there is a tension that the stocks will disappear – which in most cases leads to a purchase. So, depletion of stocks is a valid reason why discount coupons exist – without your brand suffering and its value not diminishing. Something that should be used.
3. Pro: You Retain Old And Acquire New Customers
Discount coupons are phenomenal for those who are on the brand’s website for the first time. This way, you will motivate people to buy their first product, which is always the most difficult. However, if the product is of sufficient quality – then you have done twice as good work. When it comes to retaining old customers, discount coupons help you a lot here as well. Namely, the percentage of leaving the basket is something that bothers a large number of eCommerce stores. It can definitely be reduced if a coupon popup is activated at that point. Those users who put the products in the basket are on the verge of buying something – so the efficiency of these coupons is at a really high level.
4. Pro: Fast Cash Inflow
Considering that when giving a discount coupon for online shopping, you keep the old, but also acquire new customers – it is quite certain that sales will be increased. Moreover, it allows you a larger inflow of cash at once. The money that pours into your account on the pile can be invested further in the business (which is definitely recommended) – or you can treat it as a net profit. When you make a final calculation, you will see that by giving a discount you have gained on the number of sales. In the end, you have probably made a higher income – than if you had sold the products at standard retail prices.
5. Con: Big Discounts Are No-No
If you decide to give a HUGE discount on the products on offer – people will doubt the quality of the product. It must have already happened to you that you went into a supermarket – and saw a product whose price was reduced by more than 70%. Your first thought was probably – the date is expired. So don’t make discounts that are too good to be true. Your customers won’t like it.
6. Con: Campaign Announcement with Discount Codes – Do It On Time
The best campaigns start with a timely announcement. For example, if you want to launch a campaign with discounts on Black Friday – it would be ideal to start with announcements that it will happen. However, you should do it on the days before Black Friday. Many companies even have the so-called Black November and have discount codes, coupons – but also advertisements throughout the month.
The Bottom Line
What is important to know if you decide to use the discount is that it is a sales tactic, not a strategy. Using a discount code or a coupon is good if it serves to raise the value of the brand – and you can always use it, and not just on special occasions.