Advertising
Advertising

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.

Advertising

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.

Advertising

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.

Advertising

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.

Advertising

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

More by this author

6 Reasons Why French Press Makes the Best Coffee 9 Things To Remember If You Love Someone Who Doesn’t Easily Show Affection 12 Ways To Earn More Money While You Have A Full-Time Job 7 Steps to Reduce Your Laptop’s Fan Noise & Increase Speed 7 Ideas To Decorate Your Home Using LED Strip Lights

Trending in Budget Activity

1 6 Easy Ways to Treat Yourself 2 Seven Tips to Save Money While Renovating Your Home 3 4 Ways to Make Every Penny Stretch in 2017 4 Getting Out of Debt in 4 Simple Steps 5 10 Amazon Review Sites That Will Get You Really Good Deals

Read Next

Advertising
Advertising
Advertising

Last Updated on March 29, 2021

Life Insurance: A Secure Way To Protect Your Future.

Life Insurance: A Secure Way To Protect Your Future.

Life is a journey full of ups and downs. No one can actually predict what might happen the next moment; there are times where the happiest moments do not even take a second to turn into the gravest. Planning for your future can help you face such unwelcomed but irrepressible situations with much ease. We all want to make every memorable event of our life more special and to cherish all those moments happily and worry less, you must financially plan your future. But no one has control over life and death. Who would wish to see his family suffer in his absence? Insurance hands over the financial jeopardy of life’s happenings to an insurance company.

Importance of getting a life insurance

No one has control over life and death. Nobody would like to see their family suffering in an absence, and that’s why many people recommend life insurance. A life insurance plan is one of the best ways to secure the future of your family, even against those financial troubles after an untimely demise. These plans are safe and credible, and you could trust them for your family’s better future.

Advertising

On the other hand, a life insurance policy is a contract between a company (insurance provider) and policyholder in which the insurance provider ensures to pay a certain amount of money to the nominated beneficiary in case of the policyholder’s death during the term of the agreement. There are different types of insurance plans, and it is important for you to know the benefits of those plans such as a funeral, medical or some life expenses provided they are mentioned in the agreement.

Choosing the right insurance plan

If you’re about to select an insurance plan, you should consider some important factors:

Advertising

  • The time at which you start investing in a program and the number of family members you want to get insured. Obviously, a married man with two children has different needs compared to a single one. The number of persons who are dependent on an individual also varies from person to person.
  • The next thing you need to consider is you and your family needs. What are your child’s dream, your retirement plans, for how long would your dependents need financial support, any personal injury, etc. And do not forget those events or situations that will surely demand a huge sum of money.
  • The next thing one must consider is your current income. You should preferably choose a plan which you can afford.

Now you must be having a pretty clear idea of how to choose the best plan for you. Further, you should also compare various plans offered by different companies and numerous sites available online that help will you to compare them.

Differences between life insurance plans

Here’s a short brief of some plan categories you can choose according to your needs:

Advertising

  • Term Insurance Plan – You have to pay once, and your nominee gets the paid money under your misfortune demise. It ensures a person for a fixed time. If you survive the policy period, you do not get your premiums back.
  • Whole Life Policy – This plan continues for your lifetime. Under this, the policyholder has to pay regular premiums, until their death.
  • Endowment Policy –  In case the individual dies during the tenure, the beneficiary gets the amount assured. If the person survives the policy tenure, they gets back the premiums paid with other investment returns along with several other benefits.
  • Money Back Policy – In this a portion of the money invested is returned to the investor at regular intervals. If you survive the insurance term you get the entire amount back; else the beneficiary receives the entire sum assured.
  • ULIPs – These are the life insurance plans that offer you future security plus wealth creation options.

Many people do not opt for whole life policy and endowment policy because of the high amount of money you need to pay, while others may prefer to opt for these if they have a high life expectancy. Surely you will find the best one for you.

So what are you waiting for? Plan for your future and live a happier and carefree life today.

Advertising

Featured photo credit: aryehsampson.com via aryehsampson.com

Read Next