Why Coupons Are Used as A Sales Promotion Technique?

Updated on March 15, 2021 | by Alex Jones

Why Coupons are Best Promotion Method

To establish a strong business in today’s world, you need to know a lot about sales promotion and advertising. It is a way of stimulating sales by attracting the attention of customers according to their interests. Numerous shows, advertising boards, quotes, and demonstration activities are used to upgrade the selling efforts in the market. This can also be used to track the activities of customers who submit their details while purchasing the products. One such method of promoting sales growth is the use of coupons and discounts. Ajio’s first order coupon lets the users enjoy some deduction in price when they download the app for the first time. 

How do Coupons Work?

A coupon can be compared to a form of cash that you can use in stores to reduce the amount needed to be paid. The face value of the coupon depends on the date and situation. It may rise or fall according to the ongoing events and festive seasons. After you submit the coupon to the cashier, it is sent to the manufacturer via mail. The job of the manufacturer is to check the printed data on the back of the coupon to capture its value. 

Types of Coupons

Every headquarters consists of a person who is in charge of inspecting the coupons that are submitted daily. The UPCs provided in it can be scanned via devices that are already available to them. The coupon is tallied to get the final amount that needs to be removed from a customer’s bill. It can also be done single-handedly by providing the necessary invoice to the retailer. The structure of coupons is varied to reduce the chances of hacking. These are the two main categories of coupons that you can see everywhere:

Randomized Codes: 

These have a high standard of security that does not let any unauthorized user get access to it. It uses a ten-digit code that is tracked by the staff at the counter before finalizing the bill. Since it uses the ten-digit code, the chances of guessing the number by other users become almost impossible. The code is unique for every customer and cannot be shared or distributed among other individuals.

Static Coupon Codes: 

As the name suggests these coupons use a single code that is distributed to every shopkeeper to reduce any kind of complication. It is a way of combining the coupon codes with the promotion campaign used by the company. Hence the need of creating individual codes and sending them to millions of buyers gets extinguished. Also, they are very easy to remember for customers who have to buy daily. 

Why Coupon Codes Use Expiration Dates?

Every coupon requires an expiry date to ensure that customers don’t re-use it constantly even after the offer has expired. Without expiration dates, the value of coupons will get nullified as everyone can use it to confuse the manufacturers. It is a smart way of keeping everything transparent between the shopkeeper and customer so that they don’t use the discount that is one month old. It also acts as a shield to protect your company’s sales from coupon hackers. 

Importance of Coupon Codes in Business

The economic situations can vary at different places depending on the natural or technological crisis. It can hamper the financial condition of the customers on a large scale. The demand for items might fall if the price of items and services are kept high despite such hard phases. This is where the usage of coupons kicks in. It is an ideal way to entice customers in visiting a brand new store or business location that has just arrived in the market. The deals need to be designed in such a way that both parties can enjoy a good amount of profit. If the discounts are too high it might reduce the worth of the products that are being sold. Here are some important uses of coupon codes for business owners:

Sales Volume can be Stabilized: 

Every organization needs an effective and efficient strategy to control its sales volume. Coupons can help your company to reassure the customers that the price reduction won’t affect the quality of the product. How the product is promoted will be taken into consideration by the customers who are dependent on it. If the customer faces any kind of discomfort they will shift to a better brand with beneficial facilities. 

Provides Better Usage of Storage Space: 

There are many items in the store that are rarely bought by the customers because of their extreme price details. Providing discounts through coupons can give them the chance to buy such expensive items. Thus, the owner can make use of this storage space to keep other materials that have even higher demand in the market.

Build a Good Reputation of the Company: 

Many groups in our societies can’t buy expensive products and services offered by high-end organizations. Helping such needy people with discounts can enhance the reputation of your company. Many organizations gain the impression of being socially responsible by providing special offers to senior citizens, military people, and other social workers. It will automatically help your company to gain followers via social media sites and other websites that are driven by youth. 

Promotes Product Differentiation: 

Supplying coupons is a great way to make your company unique and more attractive than your competitors. It gives that extra edge to the products created by your company. Customers will surely remember a brand name that offers low prices while buying expensive kinds of stuff in the market. The data gathered through these coupons can also be used to compare with items that provide similar services in the market. Customers can make use of Ajio offers today to grab the best deals before it goes out of the sale. 


Coupons are a way to create a bond between the customers and retailers. It is a way by which business owners ensure to provide their audience high-quality products at a low rate. 

Related Post