Coupons Benefit More Than the Consumer: How Retailers Can Maximize Returns
3. Reach new customers and lure former customers back. Posting discounts and deals on a coupon website is an additional channel for retailers to reach new customers who might not have visited the retail site directly. In addition, coupon sites are a way to reach lapsed customers who come across coupons and deals from stores they used to shop. Putting the customer’s needs first with a discount goes a long way when it comes to building relationships that will last.
4. Sell off excess inventory and get rid of closeout items. By offering discounts on certain products, it can be a good opportunity to liquidate last year’s items, free up warehouse space, and get consumers to purchase items that they might not have been drawn to prior to the coupon being offered. Inventory gets lower and lower on certain types of products, but retailers can play this up and encourage customers to see the importance of buying now, hopefully adding to the demand.
1. Offer discounts year-round. Issue more discounts throughout the year as opposed to just releasing them during seasonal periods. Consumers have come to expect discounts and will seek them out.
2. Focus deals on items that have a higher margin. A consumer will never say that a coupon offered too great of a discount. On the flip side, high percent-off coupons can have a negative impact on a retailer’s bottom line. By offering discounts on higher-margin products, retailers can protect their margins while still offering an attractive deal for the consumer.
3. Test different types of coupons. You should be willing to test different coupons and see what works best: higher-dollar-off thresholds to increase AOV (average order value), different percentages, free shipping, etc. Before current coupons expire, offer new deals to make sure that there is a consistent flow of deals guaranteed to work.