Discount coupon – What is it, definition and concept | 2022

A discount coupon is a promotional strategy used by companies to increase sales in many product categories.

In other words, it can be said that a discount coupon is understood as a price reduction. For that reason, it stimulates people to buy more than one unit of a certain product or stimulates them to try new products.

Generally, coupons are used to get a quick increase in the level of sales. They can be used to attract potential customers and get existing customers to buy more. Also, for current customers to buy new products, or experiment with new sizes and models.

Of course, for these discount coupons to be effective, they must be accessible and easy to identify and use. Therefore, they should be distributed in print advertising inserts, on packaging, through direct or electronic mail, in store displays, and via the Internet.

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How does the discount coupon work?

To begin with, a discount coupon works as a sales promotion tool. This can appear in printed form or through a code that is frequently used on Internet pages.

Naturally, when it is printed it can be included in the same product or packaging or sent directly to consumers. Likewise, if they are codes, companies use the Internet to be able to exchange them.

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Without a doubt, they are used as a strategy to increase sales of current products or to make new products known. The discount coupon offers an advantage to regular customers. For this reason, it allows, first of all, to build customer loyalty and also increase sales. This, by lowering the price, making it more attractive to the consumer.

Who can the discount coupon be addressed to?

Discount coupons can be addressed both to final consumers and to distributors of a product. If they are aimed at final consumers, the objective is to attract the attention of consumers to a certain product or a specific store. The advantage offered is to give you a price reduction for a certain period of time.


Of course, the discount coupon is equivalent to an amount of money. Therefore, they are accepted by the dealers or dealers. These coupons are exchanged with the company that manufactures the product and in this way the merchants recover the value of the coupon.

What requirements must a discount coupon meet?

Among the main requirements that a discount coupon must meet, we can mention:

  • It must be easy to identify. That is, it must be immediately identified as what it is. It must not cause confusion in the consumer regarding its purpose and presentation.
  • Clearly communicate its nature to consumers.
  • It must have the required legal support and protection.
  • The coupon must meet certain standards that facilitate handling by distributors.
  • It must cover and satisfy the needs of dealers and distributors.
  • The form of the offer must be clearly defined. The value of the discount, the brand, the quantity and the size of the product must appear on the front of the coupon. Similarly, the place or the way to redeem the coupon.
  • If it is printed, it is better to have dotted or perforated lines and specify the expiration date of the coupon.
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Advantages of using the discount coupon

The main advantages of using discount coupons are:

  • Increases customer loyalty to a specific product or brand, causing them to make purchases on a regular and continuous basis.
  • Increases the level of sales, especially in products that have high prices. In addition, they can help increase the sales of any product by taking advantage of certain periods or seasons during the year.
  • You can attract potential customers.
  • Greater recognition of the brand, the product and the business.
Discount Coupon 1
Discount coupon
Advantage

Disadvantages of using the discount coupon

The disadvantages of using the discount coupon are:

  • It puts the image of the brand or the company at risk. This is because the consumer could consider that the brand or company has become common and could lose positioning.
  • You can reduce the profit margin. This may result because the discount is very expensive for the company. For this reason, it is recommended that the calculations be made in advance, in order to make a decision that is favorable in handling the discount.
  • It could cause a drop in income. This could result when people buy the product at the normal selling price. But, by taking advantage of the discount, they continue to buy the same amount, causing a drop in income.
Discount Coupon 2
Discount coupon
Disadvantages

In conclusion, it can be said that the success of a discount coupon depends largely on the support that the producing company receives from distributors and merchants. On the one hand, the distributor must have a sufficient level of inventory. This implies that you must increase your margin of orders and support with the placement of the product in places that attract attention. Only if this support is obtained, an effective increase in the level of sales will be achieved.

On the other hand, discount coupons are promotional strategies that have become very popular with the use of the Internet. Discount coupons on the Internet have been widely disseminated and as a consequence it is a very successful strategy used by many companies.

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