The Pros and Cons of Offering Online Coupons to your Business

The Coupons are meant to drive customers to your store. Most of us like to use coupons to get discounts on products from top retailers while shopping online or in-store. A department store JC Penney tried to break this coupon habit of customers in 2012. But what they experienced in fact was a drop in sales by 23%.

Giving coupons, discounts and special sale offers may enhance growth of your business but there are few pros and cons you need to consider before you do so.

Consider the Pros

Most important benefits of online shopping deals are increased customers acquisition, more conversion rate and customer loyalty. With new customers coming to your store, you get the opportunity to introduce new product lines that’s more profitable to your business. In addition, offering coupons can help you get rid of unwanted inventory which is costing you space in your warehouse.

There are many ways to use online coupons as long-term marketing strategy. One of them is to spur repeat customers. Ask them to provide their name and email address in order to grab the coupon. In this way, you can establish an email marketing campaign to encourage their return. Another good way is to make coupons available to those who ‘like’ your page on social media sites (like Facebook).

Consider the Cons

One of the biggest cons is that they cost you money. Any discounted item you offer to consumer means less money in your pocket. Measure and do some math to calculate whether or not an online coupon is worth it for your business.

Other drawback of offering online coupons is that customers get the bad habit of waiting only for coupons and they only wish to avail the best online sales right now. This, in result, dismantles the whole income that is used to generate before the online coupon campaigns. So, you need to consider some factors like when and how to offer online coupons to prevent troubling your regular customer base.


Online coupons are nowadays crucial part of social marketing strategy. Yet, offering coupons will result in reduced profits.

Therefore, we suggest you to use online coupons strategically. Be mindful about profit margin to grow your business and maximize your customer base. You must find a way to analyze that either the discounts will improve your bottom line in the long-term or not.


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