Meaning And Importance of Coupons
Coupons are hot property and the state of the economy has much to do with their popularity. Article after article about saving money, mentions using coupons,and consumers are following their advice.
A coupon is a ticket or document that can be exchanged for a financial discount or rebate when purchasing a product. Coupons offer instantly redeemable savings on certain products. That means that consumers get an instant reduction on the price at the point of purchase. They don’t have to send anything to the manufacturer, they don’t have to enter any type of contest. They walk away from the store with the satisfaction that they have saved money.
Now the question that arises is,Why would a company let consumers walk away paying less for their product than the displayed price? Peer pressure may be one reason. Coupons are an inexpensive form of marketing. Due to this fact, almost half of all retailers say that they use some type of coupon program. If a company’s competitors are doing it, the company will most likely consider doing it as well.
That’s not the only reason, however. Coupon programs offer a host of benefits. They can:
Increase the number of new customers – A customer may try a product just because they have a coupon for it and like it enough to continue to buy it.
Help move a specific product
Build brand awareness – A consumer sees the brand name on the coupon even when the coupon is not redeemed.
Reward current customers – Customers are delighted when they receive the gift of savings from the manufacturer of a product that they buy regularly.
Entice former customers to return
Create the opportunity for the marketer to up-sell a more profitable product
Provide the marketer with a highly measurable marketing program
The idea behind a coupon program isn’t simply to get consumers to buy your product. You want them to notice your brand. Well-designed coupon programs accomplish that goal. In addition, retailers will benefit from such programs as it will drive traffic to their store.
Hence Coupons definitely are useful for each and every customer at varying levels,and plays a pivotal role in this world of “Consumerism”!