Coupons-The best/ worst weapon in your arsenal!

Written by Vanshitha M

Published on Sep 28, 2023


The happiness of receiving a juicy coupon or the money we get through some clever bargaining is often thrilling, but taking a nosedive into the topic of coupons, let’s decipher if coupons can be good or bad for brands. Understanding customers is the only way a brand can thrive in today’s competitive landscape, even with giving discounts make sure your competitive edge remains intact.


Did you know that 66% of customers will purchase a product if they have a coupon even if they didn’t intend to?
Coca-Cola was the first brand to ever give a coupon in 1887 and their ROI was jaw-dropping! The market has revolutionized ever since. Fast forward to 2022, coupon values have skyrocketed to over $91 billion.

Source: OmniSend

Coupons can be a perfect tool to supercharge revenue and user engagement, but it’s not necessarily a boon. For small companies where cash flow is dependent on every penny, coupons can be a bane!
So how can we comprehend whether coupons fit right into our strategy? I can help you with that!

Source: SaveMyCent

Harnessing the power of coupons!

  1. Increasing loyalty: Discounts can help glue loyalty to the existing clientele.
  2. New customer base: It’s found that 60% of customers are likely to try a new product due to coupons, and 46% said they will change their initial purchase plans. So the products can be introduced to a new clientele base.
  3. Marketing: Coupons provide a treasure trove of consumer details on the users. This can further be used for email, SMS, and WhatsApp marketing.
  4. Enhanced Brand Image: Brands offering discounts enjoy 55% more positive images.
  5. Old/Unsold inventory: Got unsold or old inventory? Coupons clear the shelves by turning the products into must-haves. Don’t hoard your products, gain profits!
  6. Cart sale: Users have many items in their cart that they abandon, coupons turn them into complete purchases.

Disadvantages of Coupons:

An example of a failed strategy would be the infamous Domino’s tattoo discount where the users who complied with getting a Domino’s tattoo were given the offer of 100 free pizzas a year for 100 years which had an overdrive of submissions leading to new regulations to the marketing.

  1. Premium: Many premium products do not offer any cost reduction to establish a higher value for the products, applying discounts can come as if the brand is only degrading their product.
  2. High expectations: Regular discounts can instill a wrong image of unrealistic expectations ultimately leading to customer dissonance.
  3. Bad image: Increased discounts can create a wrong persona of ‘bad product’ so ‘less cost’.

How can you leverage coupons?

  1. Competitive analysis: Comprehend what your competitors are doing so you can understand how to price the coupons. It’s to decide a better move!
  2. Proper timing: Not knowing when to introduce a discount, and stopping can lead to losses, especially for a small business.
  3. Be specific: Specifications on the discounts, the timeline, and the number of users depending on the environment and product can be a deal maker or breaker.
  4. Don’t just do it!: Every strategy requires a plan. Coupons are only part of a whole parcel of customer retention. For best-of-the-best ways to retent your client. Join us, Retention10! (Please add the website link).
  5. Leverage social media: With the constant upheaval of many coupons each day, it’s tough to keep track of them so make sure your coupons are visible.
  6. Be reasonable and realistic: Make sure you don’t overpromise your clients and undervalue their efforts.

Coupon redemption:

Many users buy new products with the offer of a coupon but many of them do not use the coupons.
Despite 97% of users actively seeking coupons and 71% of people downloading an app only to get coupons but still, a digital coupon has only a 7% or higher redemption rate, and only 1% of coupons are redeemed!


There are multiple metrics businesses use to comprehend the real impact of coupons like redemption rates (% of customers using coupons or discounts), incremental sales (Additional sales generated by coupons), Average order value (Average amount spent by users who use coupons), Customer lifetime value (estimated future value of customers who use coupon based on their retention and spending patterns), ROI (Ratio of profit to cost of coupon). This would be possible by collecting and analyzing data to track the metrics. Customer surveys and A/B testing can be used to compare two coupons. Regression, Segmentation, and Attribution data tools can also help a brand.


Coupons can change a user’s behavior by 83% This can be your ticket in the user’s journey to retain maximum clients. But if misused, it can turn out to be Acilles’ heel Please assess your product, and industry and check out your user needs and competitors analysis. But every task I mentioned can be made simpler by us, Retention10! Join us so you can get every strategy on customer retention.

Why Retention10?

If you are confused about whether to allow a coupon or even with which type of coupon to allot? We are your destination.
We have every trick and analysis to tell you how to perfectly curate the coupons to boost maximum profits.

Thanks for reading.

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Vanshitha Munipally
( Research & Content Marketer )

To get your customized Coupons strategy solutions, Do write to us :

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