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BizReport : Ecommerce archives : May 10, 2011

Top 3 coupon myths debunked

Consumers continue to look for more coupons and deals every day, but some etailers continue to shun the coupon/discount idea. One study indicates that 94% of consumers know there are coupons available on the Internet although only about 67% have actually printed and used online coupons. Brands may be staying away from coupons because they believe coupons won't help them earn more; not so says one expert.

by Kristina Knight

couponcraze.png"In order for deals to be successful, merchants must identify their business goals and implement a plan accordingly," said Christian Gordun, Founder and CEO, Coupon Craze. "If a retailer's strategy is tailored, well thought out and executed correctly, online coupons are undoubtedly a powerful tool for merchants to attract new customers, engage with users and increase customer loyalty."

First, coupon users and deal seekers aren't loyal customers. Untrue, says Gordun. He insists that coupons and deals are good ways to attract new customers and turn them into loyal repeat buyers. According to Gordun, the deal or coupon which first engages the consumer gives them a sense of added value.

Second, coupons decrease the intrinsic value of a store or brand. No, says Gordun.

"Never underestimate the consumer, as consumers are smart and understand value. It is important to offer a variety of deals and to appeal to different types of customers, i.e. new, returning, VIPs, etc."

Third, etailers lose money when they issue coupons. Another no, says Gordun. He says that coupons should be seen as a buying incentive to capture more interested consumers. Coupons, he says, are a good way to interest consumers in products they are unfamiliar with, and they may not have shopped at all without the coupon.

Tags: Christian Gordun, Coupon Craze, coupon usage, ecommerce, online coupons

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