Big and small product companies and notable and less known brands – all are using the business strategy to use the discount codes to generate product awareness among the people who love shopping and among people who still now, do not know what is a discount code. The discount code is not a very complicated thing. It is actually an exceptional and special kind of digital or alphabetical code that can be distributed within a particular category of customers to subtract a particular monetary amount or percentage which is taken out of the registration fees of the customers.
The interesting fact about the discount code is that, it creates discrimination between shopaholics, sensible customers and frequent or obsessive buyers. The discount code can be levied upon most market products like bags, jewelry, movie tickets, computer game tickets, garments, gadgets, toys, consumer durables and some FMCG products, and the craze for discount codes has increased so enormously that these codes are also used in grocery items, fruit baskets, vegetables and confectionery. For example, Spencer’s retail mart offers a huge discount of about 30% and more on numerous products. Similarly, the grocery stores sponsored by Future Group also gives almost 45%-50% seasonal discount codes on various items.
What are the key things to keep in mind before generating discount codes?
Discount codes are available for major and minor products. The companies must be very careful regarding the following facts:
• There are no limits to the number of discount codes a company can create.
• The company should keep in mind that purchasers cannot ‘stack’ discounts. It is better to give a single discount offer at a particular time.
• The expiry date must be chosen very carefully by the company, so that the buyers cannot make any illegitimate discount claims after a stipulated period of time.
• The company has to mention the product details very carefully, and they should not mislead the purchasers.
The ‘good’, the ‘bad’ and the ‘ugly’ of the discount codes – why should you chose the discount code, and why not?
There has been a constant debate regarding the advantages and the disadvantages of the discount codes. Both the aspects are part of the economic reality, but they must be analyzed very carefully before going for any transactions online. The advantages include a kind of brand consciousness among the buyers, and how the company product is reaching the masses within a brief period of time. Secondly, the discount code generation allows a company to secure its position in the economic market, and online, as well as offline advertisement of the discount coupons really help.
The disadvantages can be that the discount code can be listed on freebie sites, voucher code sites, blogs, and many other sites and the spread of codes can take a viral form which often becomes difficult to manage. Customers can also have a negative idea about the company, as they may seem to be bargain retailer or promotion agents. This is created if the discount codes are displayed on numerous websites.
Therefore, be cautious when you purchase discount coupons.