Internet Coupons As A Retail Strategy

Internet Coupons As A Retail Strategy

The theory behind Internet coupons is​ the​ same as​ that of​ its low-tech counterpart, the​ shopping coupons delivered in​ the​ weekly advertiser. Internet coupons offer a​ considerable discount to​ the​ buyer in​ order to​ get him or​ her to​ try the​ product or​ the​ retailer. They offer real shopper savings, sometimes as​ much as​ 25 to​ 30% and​ allow the​ consumer to​ try something her or​ she may have been considering at​ a​ more attractive price that makes the​ purchase not so risky. for​ retailers, coupon distribution and​ use does result in​ higher sales volume but also cuts into the​ profit margin, making them a​ generator of​ turnover but not necessarily increased profit. However, most online retailers think any disadvantage is​ offset by the​ usefulness of​ coupons as​ a​ marketing and​ advertising tool. Coupons are popular with Internet users and​ they do bring shoppers in​ to​ the​ virtual stores. One Internet market research firm estimates that 40% of​ U.S. online shoppers use Internet coupons.

Internet coupons may have increased value when used as​ a​ market research tool. Coupons are an​ easy way to​ track the​ popularity of​ items and​ programs. the​ can be a​ good indicator of​ the​ online marketplace in​ general. Manufactures are beginning to​ value online coupons as​ a​ measurement device in​ market research. Retailers are beginning to​ see different strategies behind Internet coupon use particularly in​ the​ way in​ which they are distributed.

As with all coupon use, different distribution strategies will produce different results. a​ coupon site that distributes percent off coupons will indubitably draw shoppers interested in​ lowed price and​ getting a​ bargain. But a​ bargain hunter may not be the​ type of​ consumer that some retailers find most attractive. These retailers may find that when coupons are offered as​ a​ response to​ a​ sales transaction or​ in​ tandem with registration at​ a​ retailer’s website, it​ can result in​ attracting a​ different kind of​ consumer, one who represents repeat business. Used in​ this way, the​ coupon distribution policy can be a​ first step toward a​ customer loyalty program.

This is​ more attractive to​ a​ retailer who sees the​ coupon sale not as​ a​ one-time sale that lowers his profit margin, but as​ a​ reduced sale that creates incentive and​ a​ base of​ loyal customers that will represent return sales. Coupon use in​ this fashion becomes akin to​ a​ promotional offer aimed at​ promoting future business and​ growth of​ the​ business. With this more targeted use of​ Internet coupons, both the​ retailer and​ customer can profit in​ the​ long run. From the​ customer’s perspective, he has tried a​ new product and​ Internet retailer. He has been rewarded with a​ discount coupon for​ his purchase and​ knows where to​ return for​ a​ fair deal when making future purchases. He has reason to​ suspect he will receive an​ attractive price in​ the​ future. for​ the​ retailer, the​ use of​ Internet coupons has resulted in​ a​ solid Internet advertising campaign since the​ best advertisement, in​ any retailer situation, is​ a​ satisfied customer.

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