5 Reasons Why Couponing is Different from Discounting


E-commerce has started growing faster than ever in the country. Now that the recent edition of GOSF is over, all the online retailers would have a good idea about where is the difference in their expectations and actual consumer response. The key elements that are the driving force behind a festival like GOSF are discounts and coupons. Note how I wrote the two things separately, this is because they are different things.

Many a times they are used interchangeably because coupons ultimately do provide discounts over and above the conventional discounts stores have. If you are running an online store or are planning to start one, there are some things you should know about the difference between coupons and discounts.

A coupon is a ticket or document that can be exchanged for a financial discount or rebate when purchasing a product. It is the most effective way of generating interest. Everyone loves coupons. They gain popularity and achieve multiple goals.Coupons help boost up the sales number in short term by generating traffic, they are the reason to attract new customers, inactive customers and also make consumers break their routine shopping patterns to take advantage of a good coupon offer.

1) Coupons Help in Branding
They are like small advertisements which help in promoting a product or company. Coupons are an add on over discounts. A site may present a discount on a product but a coupon will help customer avail an additive benefit of discount over the already discounted item, making the entire shopping experience exciting. Moreover in this form of affiliate marketing, you pay only when you acquire a customer and not only for displaying your store on a third party site.

2) Coupons Attract First Time Buyers
Existing customers are more likely to share their exciting coupon offer experience with friends and relatives, thereby attracting new customers. People love discounts and attractive coupon offer gets new customer lot. Additionally, coupons sent as vouchers with delivery items retain existing and many a times they share them with their family and friends, hence helping in acquire new customers.

3) Coupons Have a Clear Validity Period as Compared to Discounts
A discount is a rebate offered on the actual value of the product by the particular brand. It is a brand’s sole wish as to when or when not give a discount offer for the customer. Whereas, a coupon has a fixed period of its validity, and the online store chooses the items on which a buyer can avail the coupon. Therefore the customer is aware of a coupon’s longevity and can redeem it before it expires. Generally discounts are applied on certain products and varies per product. However, couponing is generally sitewide or category wide, thus it gives the buyer more options to chose from. So we can say coupons are more exhaustive.

4) Visibility of Coupons is Higher than a Discount Offer
A coupon is advertised so as to make it available for inactive and new consumers along with regular customers, however the discounts will be available on the sites and visible only when a buyer make a visit. A coupon acts as a promotional tool as compared to discounts. It is easier to track coupons, you can have different coupon codes for your social media pages, email campaigns and the couponing sites.

5) Positive Psychological Effect of Coupons
Coupons have a psychological effect on the customer, that he is the one who is getting the best deal (compared to other buyers) and thus attracts the buyer more towards that brand. After all, coupons have a feel good factor about them.

Author- Vikash Khetan
Vikash Khetan is an engineer turned entrepreneur and is the founder of CouponzGuru.com, which is a leading coupons and deals website in India. He has worked as a Business Analyst in IT for 5 years, before taking up his passion for Internet Marketing full time.

About CouponzGuru:
Launched in 2011, CouponzGuru is one of the first coupon aggregating sites in India. It has discount coupons for over 350 online stores and strives to have an updated collection of latest & working coupons, which are manually verified before being uploaded, to ensure all visitors get what they want.


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