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5 Deadly Coupon Codes Mistakes to Avoid at All Costs

5 Deadly Coupon Codes Mistakes to Avoid at All Costs

Coupon codes can be a great tool for your business. They bring in new customers and get those customers – as well as returning customers – to spend more with your company. However, if used incorrectly, coupon codes can be ineffective, or worse, can be detrimental to your business. If grossly misused, they can even cost your company some serious money.

That’s why it’s important to consider both the benefits of coupon codes and their proper application as well. Here are some mistakes you should avoid when creating coupon codes.

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1. Not Understanding Customer Acquisition Cost

The concept of customer acquisition cost is a fundamental one, and it’s the principle that drives your coupon campaigns. The customer acquisition cost is the amount of money you need to spend in order to gain a customer.

You want to spend some time thinking about what CAC is right for your business; after all, one that is too high might harm your company’s finances, just as you would by overpaying on advertisements. The point here is not to spend a long time crunching numbers, but it is worth taking note of what you stand to gain – and lose – by offering coupons.

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2. Offering Too Steep of a Discount

While a calculated large discount such as 30% off can work out very well for your company, bad things can happen if you don’t take the time to figure out where to apply this discount and how many discounts you give out. For one, a high discount rate might mean a higher CAC.

But on the other hand, a large discount can also work too well by bringing in a lot of people who wouldn’t otherwise shop with your business (and won’t plan to again) just to buy the steeply discounted product. Furthermore, if your company fulfills its own orders, you could be putting unnecessary strain on shipping and logistics, as well as your sales team.

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3. Offering Unlimited Discounts

If you offer store-wide discounts, such as nordstrom coupon codes make sure that they’re limited number of uses. Shoppers could easily take advantage of your discount and buy much more at discount than you had anticipated, leading to a lot of sales but low revenue.

Furthermore, if you give out too many discount codes, you run the risk of running out of inventory. If your coupon campaign was designed to push out older stock, you may end up having to order more of this old, unwanted stock, which could cost you more money than originally anticipated.

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4. Not Giving Away a Good Enough Discount

Most of the mistakes you can make err on the side of giving away too much. But, don’t forget that you can also be guilty of not giving away enough. Sure, not much is lost if your coupon deal isn’t the greatest on the market. You can always provide customers with a better discount.

However, by knowing the sweet spot, you can save yourself some time experimenting with different discounts. There will need to be some give-and-take as you find the happy medium between what’s good for you and good for your customers, and it will take some time and a few attempts, but the closer you get the first time, the happier everyone will be.

5. Discounting Money Cards

This mistake is easy to make and could prove to be fatal to your business. If you choose to offer a discount, be sure not to allow that discount to be used on products tied to real money, such as gift cards. If you allow a 10-percent discount on all your products and one of those products happens to be a $50 gift card, guess who’s taking advantage and buying themselves free money? Everyone. Keep it safe and allow your discounts to be applied only to certain products.

Featured photo credit: CouponMate via lifehack.org

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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Featured photo credit: Austin Distel via unsplash.com

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