One of the surprisingly simple digital marketing hacks that have recently invaded a variety of markets is jewels coupons. Coupons can act as an efficient marketing booster tool, which are now sweeping the jewelry industry.
Business owners have been using coupons to promote their businesses and create marked revenue upsurges. Using coupons in your marketing plan was proven -time and time again- to be the ultimate way of effective sales this year.
It has proven to be of significant importance to not only to the customer but also to the sellers, which obligated marketers and business managers to include coupons in their businesses.
As a matter of fact, the most prestigious handbook used by the marketing and advertisement pioneers, The “Advertising Age”, has confirmed that having coupons in your business is a crucial tool for marketing.
This handbook states that up to 87% of consumers and customers rely on coupons to get the best offers and discounts.
Moreover, coupons proved to be a winning card in increasing revenue even in times of economic recession. Coupons can result in plentiful benefits for everyone involved in the economic exchange.
That is one powerful proof and evidence of the importance of coupons and how they work on the satisfaction of both sides of the exchange.
Here, we are going to list the Pros and Cons of the use of coupons as marketing tools:
The PROs of Using Coupons:
Customers pay more attention when the company that they are already dealing with is providing them with offers and discounts.
This boosts their sense of loyalty to your company, while building trust to go to your company and buy your products and not of others.
They are expecting from your company to gain higher value with discounted prices as a reward for their loyalty.
This helps the business owners, and you, to get their new products out there and achieve more sales.
This will create a Win-Win situation for both ends of the bargain, as you’ll earn more money and maintain customers and the customer will enjoy your product and market it for you.
Customers are often lured by the shiny bargains at sight. They are more likely to purchase the items on sale rather than those with regular prices.
As a result, it is obviously a smart move on your sellers’ side to promote your products with the “Sale” or “Discount” label.
Most business owners, and yourself, are aware of how this method has proved to be a beneficial way of unloading accumulated products in your inventory.
You will not only sell your products but also get rapid cash flow in your pockets.
The coupon services can tremendously increase your brand’s purchase traffic in no time.
Sellers can get profits merely by trading coupons that are unlikely to be used by customers and so can you.
Although this might not occur on a regular basis, it is remarkable how the receivers of gift coupons can neglect them.
This retailing dynamic is strikingly common despite its minimalism.
Actually, A Rice University study noted that “Groupon”, a coupon website, to be highly profitable based on the same concept. It was proven to increase repeated purchases by 31%, and increases redemption rates by a conspicuous 50%!!
Despite the many advantages of the coupons system, it is not completely devoid of flaws. In fact, a couple of problems showed up as they used the coupons in their business. So, as a business owner yourself, you should know the cons of using coupons.
The CONs of using coupons:
1- Coupons form an extra cost.
Sometimes, to add coupons into your business could cause some financial loss because it costs you money. If you decide to implement the coupons service in your marketing strategy, you have to be fully aware with the costs of such service.
Remember that it may act as a burden on your budget, rather than make you earn more money. Make sure that you weigh your profits against the risks and costs, in order to reach a reasonable tactic.
2- Unsustainable option
While coupons are considered viable options for sales promotion, it can, as well, impede the business progress.
If you provide discounts and sales throughout the year, this will cripple your brand’s perceived image.
Besides, it is a well-known fact that less-paid employees will produce poor quality goods and services. When your team gets relatively less tips, because of the reduced prices, it interprets to quality declination overtime.
3- Regular prices are rendered relatively costly
Your customer base may grow accustomed to your discounts, regarding them to be the norm. In fact, the probability that customers will refuse to pay in the regular price, will decrease dramatically.
This will eventually cause an affliction to your pricing system. Low prices offered by coupons might also lead to a false indication of poor quality, as opposed to a high-value, over-priced product or service.
Coupons have recently become the go-to strategy in the world of Jewelry.
Several Companies are currently leading the way in the arena of coupon marketing, offering tremendous offers and discounts via coupons. “Groupons” is considered the ultimate source of all the offers that are granted by coupons.
1- Kay Jewelers
It is one of the leading jewelry entities using coupons. “Kay” is branded as a part of “Signet Jewelers”, which is primarily specialized in bridal jewelry.
It is regarded as the biggest retailer of specialty jewelry in various countries, such as the United States, Canada, and the United Kingdom. “Signet’s” annual revenues account to nearly 6 billion US Dollars.
“Kay Jewelers” provides multiple coupon services, clearances, and gift cards. It also offers up to 40% discounts, in addition to selling previously owned pieces.
2- Zales Jewelry
Another major coupon-offering jewelry company, which is similarly branded under the name of its mother company “Signet Jewelers Limited”.
It is – hands down- one of the largest retailer of classic and contemporary jewelry in the United States.
Zales has substantiated the efficacy of coupons, offering a wide variety of jewelry for every taste, other than its tremendous sales and deals. Zales is a huge name in the realm of coupon-mediated discounts, reaching up to an outstanding 60% discount, especially during special holidays.
3- Charming Charlie
This brand retails a diverse array of merchandise, expanding to include jewelry, apparel, accessories, and other miscellaneous products.
This company is one inexorable competitor, standing against the biggest names in the fashion industry, besides being a fierce competitor in the jewelry market.
This company regularly offers huge discounts and deals, which contributes to this retail business’ success. Its marketing strategy relies heavily on the use of coupons, and the mass selling of an assortment of goods and services.