In marketing, a coupon is a ticket or document that can be redeemed for a financial discount or rebate when purchasing a product. Customarily, coupons are issued by manufacturers of consumer packaged goods or by retailers, to be used in retail stores as a part of sales promotions.
What is a coupon business?
Coupon companies promote discounts from participating businesses directly to consumers, providing a valuable service for both groups. Businesses profit from working with coupon companies by boosting traffic in their stores and encouraging first-time visits.
Do coupons increase sales?
Coupons help marketers grow market share, increase sales volume, sell faster, cultivate loyal customers, and drown out competitor advertising. Coupons can encourage consumers to make a repeat purchase. Offer a discount on their next purchase, and you will be at the top of their shopping list.
Do stores lose money on coupons?
You’ll be happy to know that your store doesn’t lose a dime when you use coupons. In fact, they make more money when you use coupons to save. Not only does the store get back the coupon’s entire worth, it also will receive from the product manufacturer a payment of 8 cents per coupon redeemed.