Coupon is Better Than Discount

Create "Digital Coupon" for Retail shop, the marketing tool that catch the attention of customers in a flash.

According to the consumer survey of Visa e-commerce by the Nielsen Company, about 90% of consumers in Hong Kong have consumption at Retail shops in the past year. Global e-commerce market is growing rapidly, and more people use Retail shopping cart. How to catch the e-commerce trend and set up an effective marketing strategy is the key to decide whether your Retail shop can outrun millions of others.

3 questions to test your understanding on marketing strategy for Retail shops:

1. Do you understand the mindset of our target customers?
2. While promoting new products, or while the sale of the current product dropping, would you reduce the price to attract more sales?
3. Do you know the difference of effect on the branding of Retail shops between direct cut in price and using digital discount coupon?

If you are not sure about the answers to the 3 simple questions above, why don't you continue to read the below article, for right use of digital coupon, for better grasp of customers' minds, and for more effective promotion of your Retail shop and surge of sales.

Pricing promotion includes direct discount and issue of coupon. However, some merchants have a misunderstanding that issue of coupon is troublesome and without obvious effects, and they prefer a direct cut in price. In short term, direct discount may have a more obvious effect than issue of coupons. But in long term, the issue of coupon may have some benefits that direct discounts could not offer. The question is how to attract customers by what kinds of coupons, and how to issue the coupons for the best effect.

Coupon have edges over direct discount...

Some studies in the US find that issue of coupon, when compared to direct discount, have some obvious advantages.

1. To avoid consumers' doubt on the quality of the products
Consumers may doubt the quality of discounted products, speculating that the product is not popular or not of good quality, and discount is given to clear the stock. If discount coupon is used, consumers' doubt would be reduced to a great extent, for they understand that not all people can enjoy the discount, and they would believe the quality of the product remains the same as reflected by its original price.

2. To maintain the expected price in the mind of the consumers
Consumers have an expected price for each product in their minds. The expected price comes from the expected quality of the products as well as the actual price. Direct discount will reduce the expected price in the minds of consumers. Use of coupon is a kind of price discrimination, which can maintain the original expected price in the minds of consumers.

3. To avoid giving customers the impression that the price cut is permanent
In a very competitive market, merchants may need to cut price for long term. Obviously, this is not good to the image of the brand. A long-term discount would mean the same as permanent price cut in the mind of consumers. As the issue of coupon is of much low profile, the fact of long-term price cut could be covered.

What is the best coupon?

Retail shops may offer 3 concessions, namely discount coupon, transportation coupon and cash coupon.

Shop owners may impose 2 restrictions, namely limit on quantity, or limit on amount, or limit on both. For example, free transportation for purchase over $600; or 20% off discount for purchase over $1000, or 30% off discount for purchase of 10 products or more.

Shop owners may set up different codes, names and limits on use for different coupons. Coupon code is a unique number for each coupon. Use of coupon code may allow the merchants to understand how the customers use the coupons. Coupon name is actually the simple description of the nature of the coupon. Limits on use may affect the use of coupon according to the preference of the merchants.

What is the best way to issue coupons?

1. Digital coupon - In accordance with the survey by Business Insider, the US website, e-mail is the most attractive way to issue coupon. By understanding the favourite and habits of the consumers, owners may provide some personal concessions to individual customers.

2. Attached to the products - The coupon is attached to the products or within the package, and issued when the product is sold, and the concession is for next purchase. This method could save the cost of issue, and issue to target consumers, which will lead to repetitive purchase and high redemption rate, thus enhancing the brand loyalty. The weak point is that you cannot control the time of issue, or time of redemption, and lack of attraction towards new customers.

3. Issued on Social media - Coupons can be issued on Facebook/ Instagram, or on prominent site of a webpage. The advantage of this method is low cost. It is also fast, convenient, interactive, and accurate, which means you amy issue suitable coupons for suitable persons according to their preferences.

Issue of digital coupons has better effects than direct discounts, in terms of grasp of the mind of the customers, and the building up of the brand in the long term.

If you wish to issue digital coupons, you may make use of the tools provided by Mezzofy. Mezzofy is the leading digital coupon creator, and allows shop owners of all scales and from all around the world to create their own digital coupons by Mezzofy tools at very very low cost. To find the Mezzofy tools you may just download Mezzofy apps or go to the Mezzofy webpage at


Ready to get started?

Start creating, distribute and accept your first digital coupon in minutes. We offer solution for Non-Developer and Developer. Mezzofy libraries are also available for you to integrate into your existing website or mobile apps.


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