Everyone loves discounts. Discounts are something that attract customers to stores more than anything else. It proves to be even better if the discount is on food as it is the basic necessity for sustaining life. One effective way of implementing this discount on food is to give out food coupons.
The customers who receive food coupons can redeem the discount on the coupon when they visit the store. The discount might be applicable on selected items or all the times, depending on the policy of the store. The food coupons are beneficial to both customers and the stores.
BENEFITS AND DRAWBACKS OF FOOD COUPONS
| PRO | CON |
| Helps introduce new customers | Less profit from food coupons |
| Brings back old customers | Customer may not buy without coupon |
| Makes introducing new items easier | Timing of giving out coupons |
| Clearing of old stocks becomes faster | Gives discount to people who would have bought anyway |
| Can increase social media engagement | Coupon clutter |
| Customer also buys non-discounted products | Customer may overspend |
| Ensures long term communication | Customer needs to make sure the coupon is genuine |
| Immediate savings for customers | |
| Temporary offer |
ADVANTAGES OF FOOD COUPONS
- Helps introduce new customers
Every store or business establishment have their own customer base. These customers are the loyal ones whose needs and requirements the store caters to. But a business can never escalate and expand if there is not a constant flow of new customers. Giving out food coupons is an effective method to attract new customers as more and more new people will visit the place to avail the discount.
- Brings back old customers
It happens now and then that a part of the loyal customer base of a business establishment drifts away to some other place that suits their needs. It is very important for any business establishment to hold on to the loyal customer base and bring back anyone who might have drifted away. Food coupons work wonders to serve this purpose as it will bring them back to the old place.
- Makes introducing new items easier
People are always skeptical about trying out new items, specially in case of food. They chose to stick to the tried and tasted items and avoid spending money on new dishes. If food coupons are issued for new items, then it will encourage the customer to take interest in the new item and try it out. If they like it, then they will be interested to spend money on it even they there is no food coupon.
- Faster clearance of old stock
If your warehouse is filled with old products and there is no space for the introduction of new products, then giving out food coupons for the old products is a good idea. More the discount, more the customers will buy the items and the faster will be the process of emptying the warehouse.
- Can increase social media engagement
Social media marketing is one of the most effective forms of marketing in the recent times and every business should work towards reaping the benefit of it. If you give out food coupons through the social media pages of the store, then more and more will visit the social media pages to learn about the food coupon and avail it.
- Customer also buys non-discounted products
A food coupon is a way to lure the customer inside the store. But once inside the store, the customer is presented with various options besides the discounted ones. There is a high possibility that they will also end up buying items that are not on discount.
- Ensures long term communication
It is essential for any business to establish a long-term communication with their customer. If the store takes note of the customer’s email id or phone number while issuing the food coupon, then there is a connection established as the store can reach the customer anytime.
- Immediate savings for customers
While availing the food coupon, the customers save a lot of money. Moreover, this amount doesn’t reflect as a cashback or such other ways. The customer gets to save on the spending immediately.
- Temporary offer
Food coupons are just temporary offers meant to escalate business later. These are not permanent discounts and the lower profit from the food coupon is compensated later by the escalation of business.
DISADVANTAGES OF FOOD COUPONS
- Lesser profit from food coupons
The amount of discount provided by circulating food coupons is covered up by the business establishment. Therefore, the more the food coupons that the store circulates, the lower is the profit of the business.
- Customers may not buy without a coupon
If a store gives out food coupons too often, then it might become the habit of the customers to buy with coupons. This will prevent them from spending without a coupon which will ultimately bear a loss for the store.
- Timing of giving out coupons
The store has to strategically decide the timing to give out the food coupons. To always give out coupons or never give out coupons are both foolish acts. Hence, the timing of issuing coupon becomes very impactful.
- Giving discounts to people who would have bought anyway
to give discounts to people who would have bought the food anyway does not prove to be very profitable for the store as they make lower profits from these.
- Coupon clutter
In recent years, there has been a steep rise in the circulation of coupons which has resulted in excess of coupons. This has made the redemption of business by coupons less fruitful.
- Customer may overspend
For the customers, food coupons might appear to be good news but instead food coupons actually increase the tendency of overspending amongst customers.
- Customer needs to make sure that the coupon is genuine
There are a lot of fraud sites that issue fake coupons to increase their online engagement. It is upon the customer to make sure that they do not fall into this trap.
Food coupons are an effective way to attract new customers and it is profitable for the business if they strategize the distribution of food coupons.
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“Business, marketing, and blogging – these three words describe me the best. I am the founder of Burban Branding and Media, and a self-taught marketer with 10 years of experience. My passion lies in helping startups enhance their business through marketing, HR, leadership, and finance. I am on a mission to assist businesses in achieving their goals.”