A coupon management system is an interesting way of marketing strategy and penetration in the market by an organization to boost sales. The coupon management system can be a good way of providing discounts and increasing the sales of a company depending upon the strategies being planned and executed by the top level. It can be managed through Coupon Management software or manually wherein an intermediary can act as a coordinator between managing the coupon system of the company and the channel distribution system in the market.
Benefits of Coupon Management System
- A Coupon management system is being widely used by companies to boost the sale of the organization’s products.
- Digital coupon management can also be an effective way to introduce either new products/brands in the market or move out the old stocks or both.
Marketing of Products
- Coupons were introduced in the system as a penetration strategy for the marketing of their products wherein discounts and coupons were given on the purchase of certain items.
- With the use of these coupons, sales increased and thus also providing the discounts to the end user.
Increased Cash Inflow
Encashment of Coupons
- A consultancy can manage the coupons on behalf of the organization, and thus can add support for the dealers.
- Companies can outsource digital coupon management and the payment of the coupons redeemed by the dealer can be encashed rather than going for a credit note or balancing it in the next purchase of the dealer.
- Coupons management through an intermediary can motivate the dealers in the distribution system to enhance the sales of the products as the rewards can be monetary rather than just balancing of accounts.
- Effective coupon management can add new customers for business and can also add up old customers who would also join in.
- It can also minimize the advertising cost of the business.
How ASC Helps?
- Responsibility for GST/ Taxation compliances
- Assistance on matters relating to Finance/GST/Legal/Audit/HR.
- Seamless payments with simultaneous intimation of payment advice.
- Managing the system of dispersal and redemption of coupons.
- Facilitating cash/bank Payments to distributors for redeemed coupons.
- Overcome issues of Net 30/60/90 day payment terms.
- No Tax Hassles – GST Compliance responsibility will lie with ASC.
Frequently Asked Questions
What is a coupon management system?
A coupon management system is an effective market penetration strategy to boost the sales of an organisation. It involves passing on discounts to the customers to increase sales while ensuring an increase in profitability in line with revenue.
What are the benefits of a coupon management system?
Coupon management is basically a marketing strategy aimed at boosting the revenue of the organisations. It allows you to boost the sales of new products as well as clear the stock of old products. It increases your cash flow and helps in building a strong customer base.
What are the things to keep in mind while using coupon management systems?
There are multiple things to keep in mind while implementing coupon management systems. Foremost is the accurate and correct treatment under GST law. Further, planning is important as while passing on discounts, it is important to ensure that you maintain profitability. You also need to bring in an appropriate system to manage coupon redemption. You can use coupon management software or outsource the activity to ASC for better management of your systems.
What are the important factors of coupon management strategy?
Some of the important factors to consider while using a coupon management strategy includes:
- The amount or percentage of discount you want to pass on.
- The products or services for which you want to issue coupons.
- The period within which the coupon should be redeemed.
- Method to issue and redeem coupons.
- Safety measures to avoid any tampering or manipulation.