The fine line of coupon codes
Coupon codes are a great way to gain new customers, it’s also a good way for returning customers who are on the fence to purchase something.
but...how often should you offer coupon codes? How much percentage off should you offer?
There was a brand I followed years ago that closed up shop called Arkaik. They exploded on social media in no time and seemed to look the part. I remember seeing them tweet out coupon codes on a daily basis. After a while it seemed like people only purchased when they released a coupon code. I can’t remember why they closed down but I do remember all the coupons on my feed.
If you constantly release coupon codes, your customers will get accustomed to only purchasing when you run them.
It’s also unfair to offer new customers deeper discounts than your loyal supporters.
For example, you’ve been a loyal customer to your cable provider, and you see them offering a sale for new customers. $49/month for cable for 2 years with an agreement...
...but wait, you pay over $150/month and you don’t think it’s fair at all!
So why would you do that to your loyal supporters? Is it fair to offer a new customer 40% off while they don’t receive anything?
I have gotten to the point where I only offer deeper discounts to our loyal supporters. Majority of the time it’s through our email newsletters, which is a huge benefit for them to sign up for it.