5 Pros and Cons of Coupons for Business you never knew

This article is a quick guide to the pros and cons of coupons for business. You would also learn about the psychology of consumers to using coupons in shopping.

Research speaks in the favor of using coupons. RetailMeNot, a competitive coupon providing website shows that 96% of consumers use coupons. Put yourself in the shoes of the customer, are you more likely to buy a product for $120 or would you rather wait a few months later and bag it for 50% off?

Unless it is a perishable product, we bet that the majority of people would pick the latter option. And even in the case of food and some other items, the average consumer tends to prefer value over other factors.

Consumer behavior is hugely affected by discount codes. Let us consider a man who is trying to save money and has vowed to not shop in the current month.

When this same man sees a product that has been on his to buy list for half price, is he going to hold on to his promise? Most not likely.

While offering coupons comes with lots of benefits, when you turn the table upside down you would find out the flaws in the strategy too. The right question to ask is “ Is Couponing the right strategy for my business?

To make a better decision using coupons, let’s run you through the pros and cons of coupons for business.


Disadvantages of using coupons

Offering coupons are good for the customer and can also be helpful for the growth of your business. The use of coupons has gone up drastically especially in this age of uprise in E-commerce.

The road on using coupons for business is not always rosy, but it can be a very good marketing strategy that can increase your sales. Below are some disadvantages of coupons.

1. It can chop off good profits

It is important to access your revenue and how it may be impacted before offering coupons. The coupon strategy would attract new and more buyers, but it can also reduce your profits.

Customers who could have bought the same item at the regular price would also get to have discounts.

2. It can spoil customer habits

When your company offers a coupon, your customers would always be expecting that you would offer another coupon later as well, if not immediately, then eventually.

This can upset your profits and can even make regular customers avoid shopping and waiting for the next opportunity of bagging products at discounts.

3. It can reduce the value of your products

Consumer psychology works like this: the more expensive a product is, the better its quality. Offering coupons reduce the price of products and can reduce the value of the product which is not something that you want.

4. The positive impacts may not last for long

Even if offering coupons bring in more customers and get people talking about your brand, the hype can fall as fast as it spiked.

Arguably those new purchasers were only attracted to the deal and won’t stick around for a long time. So, in the long run, all the overall impact may not go in your favor.

5. It can cheapen brand image

Another issue of offering coupons is that if you fail to craft a suitable strategy for it, consumers can slam your brand for it. For example, if you only allow customers to buy some selected items with it, which are either unfashionable or lacking in quality, customers would be let down and this can have a negative influence on your brand’s image.

pros and cons of coupons for business

Advantages of using coupons

Studies have shown that the use of digital coupons is on the all rise. Coupons have been a good tool to bag discounts since their inception.

They help customers save some money and there’s nothing more than that they can want in a world where the prices of things are only getting higher. That said, here are the pro tips of using coupons for your business.

1. It is a good marketing strategy

Online customers can be held in place for developing a customer base by offering coupons following a clever marketing campaign. You can ask people to enter their email and like your social media platforms for getting a coupon. That way, they are more likely to revisit for more shopping.

2. Attracts new customers

Offering coupons would bring in new customers. According to research, 78% of customers who don’t normally make purchases from a brand are inclined to do so when a coupon is offered. When these people visit your store to redeem a coupon, they are more likely to buy products that aren’t part of the offer too.

3. Creates a good brand image

When you offer a coupon, your regular customers are more likely to inform their friends and family about the stellar deal that is being offered. This gets people talking about your business and in turn, help increases brand awareness through word of mouth and increase sales.

4. Sells inventory that wasn’t selling

Offering coupons would also help make room for new stock and get out the old ones. If your products have been on the shelves for a long time and you need to introduce new goods to your customers.

You should consider using coupons and this would help clear up space and sell items that have been hard to sell.

5. Gives your brand an edge over the market

These days customers have come to expect coupons all the time. They wait for coupons and choose their shops based on which one is giving discounted prices.

When your brand gives out coupons, it doesn’t only make existing customers spend but it also brings in new customers who normally shop form your competitors. By offering lower prices you gain more market relevance over your competitors.


With the wise use of coupons today, offering coupon codes is still an essential marketing strategy for the success of your business. The advantages of using coupons can easily outweigh the drawbacks of not using coupons provided your marketing strategy is designed intelligently and you don’t offer coupons too regularly or too stringently. This reduces the value of your products and degrades brand image respectively.

All in a brief, couponing can bring in profits if it is not overdone and done in the right way. Do you have any other ideas in mind? Tell us in the comments!

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