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We like coupons, and so should small businesses. Coupons such as Godaddy promo codes, FnP coupon codes, etc. are a cost-effective and measurable way to get new customers, sell more products, and bring back customers you may have lost to competitors.

Coupons work by interfering with the cost-benefit analysis consumers perform before making any purchase decision. Customers will only visit a store and buy products when the benefits of doing so outweigh the costs, including the time and money spent on making a purchase.

In this article, we’ll look at five ways coupons help boost traffic to small businesses. However, it’s important to note that central to a coupon’s effectiveness is how it lowers the cost and increases the benefits of visiting a store or buying a product.

Recruit New Customers—Coupons offer discounts to customers. When someone comes across a coupon, the discount or offer is what attracts them. Promos such as Dominos coupons, Nykaa deals, etc are most successful when they reach people who would not otherwise visit your business or use your services.

Going back to the cost-benefit analysis, new customers will be much more likely to visit a store that lowers the cost of doing so. Businesses can’t discount every product at all times, so coupons are a great way to strategically discount.

Entice New Movers: New movers are an extremely important market segment for small businesses. Because they’re new to an area, they must form new business relationships.

It’s a winner-take-all scenario. The first business to reach out to the newcomer is most likely to gain a loyal customer.Better yet, businesses that offer a discount have an even better chance.

Discounts and special offers are the most effective ways small businesses can channel a competitor’s traffic. Even though there are many ways to tell people about discounts, most of them are only available to larger businesses.

For example, commercials and ads on TV and in newspapers are often too expensive and time-consuming for small businesses to produce.

Coupons such as Aliexpress promo codes, free Uber coupon code, etc are clearly and easily allow small businesses to communicate competitive offers that can steer more customers to use a particular business. Small businesses also gain more control over where their discounts are distributed with coupon advertising. Hyper-local businesses must have this control. Otherwise, the discount is lost on the wrong audience.

Re-activate Former Customers: Similar to channelling competitor traffic, coupons also function to reactivate customers. Sometimes customers will stop using a business simply because they’ve forgotten about it.

Coupons work to remind these people about your products, and they also give them an extra reason to come back to your store. After reactivation, it’s fairly likely they’ll become current customers—even without a coupon. A simple reminder and offer can go a long way in customer retention for small businesses.

Sell More Expensive and Related Items: Last, but certainly not least, coupons can help your business sell more products. Many times, when a customer visits a store because of a coupon, he or she purchases more than just the product discounted on the coupon.

This is especially noticeable for restaurants and other places that serve food. For example, when a restaurant offers free or discounted entrees such as Swiggy coupons, Zomato promos, etc, in almost every case, coupon redemptions result in more purchases—wine, appetizers, and desserts—for a better dining experience.

Diners will reason that the money that would have gone toward an entrée can now go toward extras. This can even result in greater spending with a coupon discount than without.

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