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4 Common Mistakes to Avoid While Offering Coupon Codes

4 Common Mistakes to Avoid While Offering Coupon Codes

The coupon codes are an excellent tool for the business, and that is why almost every company is using them. Promo codes for shopping help in bringing new customers and make them loyal. But it is important to use these coupons carefully because if you use this tool, incorrectly it can cost you a lot. It can set back your business, and you could lose some serious money. That is why is essential that you consider the advantages and disadvantages of these coupons before you using them.

Some mistakes are pretty standard. It is important to avoid then if you want to benefit from these coupons. Here are some of the common mistakes that you should avoid at all costs while creating the coupon codes.

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1. Unable to Comprehend the Cost of Customer Acquisition

Customer acquisition is a concept that is pretty fundamental. It is also the principle that drives the campaigns for coupons. It is the cost of the amount of money that you will require to spend to gain the customers. It is important that you think carefully about the CAC that is suitable for the business. The finances of the company are an important deciding factor in determining the CAC. You should be careful and avoid setting the price that is too high because it will harm the financial condition of the company. If the price is too high, then it is like paying too much for advertisement. It is important to crunch the numbers carefully. You should also understand what are going to gain and what you may lose. Know the price of offering coupons before you make the offer.

2. Offering A Steep Discount

Before providing a discount, it is essential that you do careful calculations. Always provide a percentage of premium that is going to work out well for the finances of the company. You should take your time and analyse the financial condition of the firm before deciding on a discount. If you set a large cut, it will help in bringing a lot of customers even the ones who do not usually shop at your place. But a significant discount can end up putting strain unnecessary strain on the logistics and shipping. It will also put extra pressure on the sales team and it will affect their performance. To make sure that the work of the team stays efficient and the finances of the firm are not strained you need to set the discount percentage carefully.

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3. Offering Unlimited Discount

If you are looking forward to offering discounts that are store-wide, then it is important that you offer it to a limited number of users. If you do not take this precaution, then the shoppers can end up taking too much advantage of the sale and buy more products than you have anticipated. If it happens then it can result in high sales but small revenue which is not good for the business at all.

Giving too much discount will also result in emptying your inventory. If this happens, it will set back the firm. If you are designing the coupon campaign to get rid of older stock, then it is possible that unlimited discount will lead you to order more of the old stock. It will not be beneficial for your business. It will just end up costing you more money than you initially estimated.

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4. Not Offering a Good Enough Discount

Most of the time the mistake is made by providing too much to gain customers, but it is possible that you are guilty of not providing enough. You may lose clientele because you fail to provide the best deals. You do not lose much if your coupon deal is not the best one out there, but it can cause your customers to switch to other places with better deals so it is better to come up with good deals. You can experiment with different deals and determine which one is best for you. It may take some time but in the end, it will be worth all the effort as it will increase the sales and bring in more profit.

By keeping these common mistakes in mind while planning coupon deals and discounts, you can come up with the best offers.

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Published on September 17, 2018

How Being Smart With Your Money Leads to Financial Success

How Being Smart With Your Money Leads to Financial Success

Achieving financial success is not something that just happens. Maybe if you win the lottery or something, but for the average person like you or me, it comes from a series of small steps you take over a long period of time.

With each step, you form a new smart money habit. And with each smart money habit, you build towards financial independence.

So what sort of habits can you form to get on that path? Let’s take a look at smart money habits you can start today to get you closer to a financially independent future.

1. Avoid being “penny wise but pound foolish”

It’s tempting to try saving a couple cents here and there when buying small items. However, that’s not where the real money is saved. You’re putting in extra effort for something that doesn’t move the needle.

You get the most bang when you’re able to cut down on your bigger bills. For example, finding a lower interest rate for your mortgage could save you $50+ per month. And cutting your transportation bill by purchasing a cheaper car or taking public transportation can provide large gains as well.

So, look at your recurring expenses such as housing, transportation, and insurance, and see where there’s wiggle room. It’s a much better use of your time than trying to pinch pennies here and there on smaller purchases.

2. When you want something big, wait

Impulsivity can get you in trouble in most aspects of life. Finances are no different.

It’s human nature to see something and want it right then and there. It starts as a kid in the checkout line at the grocery store, and it continues on through adulthood.

We get an idea in our head of something we want, and it’s hard not to go out and get it right then.

A good example is wanting a new car. Perhaps you’ve had your car for several years. It’s crossed the 100k mile mark. Maybe maintenance is due, and you’re annoyed that you need to replace the timing belt or purchase new tires.

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So, you get the itch.

You start digging around online, and you realize you could trade in your current car for something newer and more exciting… all for a few hundred bucks a month. Then you get obsessed.

Here’s where you have to take a step back.

Your newfound obsession is clouding your judgement. Rather than giving into the impulse, wait it out.

Set a timeframe for yourself. Maybe you come back to the decision three months down the road. See if the obsession lasts.

It might, but often, a funny thing happens. Often, you forget about it. And often, you find that the new car wasn’t a need at all.

The impulse faded. And you just saved yourself a ton of money.

3. Live smaller than you can afford

You finally get that big raise. And you want to celebrate – and why not?

You’ve been looking forward to this forever. And after all, it was all due to your hard work.

That’s fine, splurge a little. However, make it a one-time deal and be done.

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Don’t get caught in the trap that just because you’re now making more money, you should spend more.

Too often, people get more money and feel like they that gives them the means to buy a bigger house, a bigger car… you know the drill. Resist.

The fact is that living smaller than what you can afford is one of the fastest ways to build savings.

But if you constantly upgrade as you begin to make more, then you’ll never get ahead. You’ll just build up more debt along the way and have just as little wiggle room as before.

4. Practice smart grocery shopping

Food… it’s one of the biggest portions of any budget. And if you’re not careful, it can be one of the biggest drains on your wallet.

But luckily, there are a few things you can do to ensure that you stay smart with your money when buying groceries.

Create a grocery budget

Set a strict weekly grocery budget. When you know how much you can spend on groceries, you can then plan your weekly menu around it.

Once you know what all you need, you can go shopping and keep a running tally as you shop to ensure you’re on track.

I tend to do this in my head, rounding for each item. However, writing it down as you go would probably work best for most people.

Make a list… and never deviate

Never go to the grocery store without a list. If you go to the store with a ballpark idea in mind, you don’t have a true ide of what you need.

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You’re not well-researched. You don’t know what the sales are. As a result, you’re going to make decisions on the fly.

These impulse decisions will lead to overspending, which will derail your grocery budget.

Eat before going grocery shopping

It’s also important to eat prior to going to the grocery store. Hunger is a powerful force.

If you’re shopping on an empty stomach, everything is going to look good. In particular, you may find a lot of ready-made, processed snacks will look enticing.

After all, you’re hungry now and that food is easily available. So subconsciously, you may lean towards those items.

Unfortunately, not only are those items typically less healthy, but they’re likely more expensive. You pay for convenience.

However, when you eat prior to shopping, then you’ll shop with a clear mind. Your hunger won’t cloud your judgement, influencing you to make poor decisions like a cartoon devil resting on your shoulder whispering in your ear.

This makes it much easier to stick to your grocery plan.

5. Cancel your gym membership

Now that you’re all set on your food, it’s time to get smart about managing your budget in terms of physical fitness. And let’s begin by avoiding the gym. The gym bill, that is.

The average gym membership costs around $60 per month. That’s $720 a year.

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Yet, two out of three gym memberships go unused. That means two-thirds of people who have a gym membership are literally giving away almost a thousand bucks a year. It’s crazy!

I recommend seeking an alternative. One good alternative is to look into fitness streaming services.

Streaming services allow you to stream hundreds of workouts like Insanity and p90x, right in your own home for around $10-20 a month. That’s $40-50 less a month than the average gym membership.

Of course, then there’s the free option. The internet is full of free workouts that you can do on your own with minimal or no equipment.

For example, there’s the Couch to 5K program, that I personally used a decade ago to ease myself from couch potato to running my first 5K race. If I could do it, anyone could.

Then there are free resources like reddit that have limitless information on workouts. The Fitness subreddit has done all the research for you, populating workout tips and detailed workout routines for anyone to use in their wiki.

There are several routines that require no equipment. And you can join in on the subreddit to become part of the community, making it easier for those seeking comraderie and encouragement in their fitness goals. All for free.

It’s baby steps… And baby steps can start now!

I’ve never met anyone that can’t stand to be a bit smarter with their money. And on the flip side, anyone can get smarter with their money. But remember, it doesn’t happen all at once.

Begin by fighting your impulses. Prepare for the week and be smart at the store. And cut monthly expenses like gym memberships that are overpriced and you probably aren’t getting your money’s worth out of anyway.

The devil is in the details. And the details can change your lifestyle and prep you for a financially independent future.

Featured photo credit: Unsplash via unsplash.com

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