Published on: 09 May 2018
Last Updated on: 12 September 2024
There are two sides to offering coupon codes in your business. One side shows that you could make more sales with coupons while the other side shows you could lose profits after discontinuing the coupon purchases. Both sides have a point, and you should pay attention to these things while coming up with a discount strategy. Many businesses still view couponing as a perfect way to drive customers and sales without experiencing revenue losses. If you are considering using coupon codes on your business, here are some of the advantages and disadvantages of the idea.
Advantages of Offering Coupon Codes :
Businesses like Vistaprint have been offering coupon codes with the idea of attracting first-time buyers and it is working really well. You could also attract customers with this method without having to give them more discounts on future purchases. Use it as a customer acquisition strategy.
If you have inventory that you want to unload quickly, offering coupon purchases is the best way to trigger quick sales. It will influence more people to prefer your products over those on other stores as long as the quality matches. You could also use coupon codes to encourage brand switching where buyers from another brand are encouraged to buy from your brand because of the pricing lure. Getting customers to make the first purchase might lead to add-on sales for products that were not discounted, which could help to raise revenues.
Disadvantages of Offering Coupon Codes :
This is a costly decision. You need to estimate the correct amount you can afford to give away. If the profit margin is not impressive, you won’t find coupon sales profitable, so it’s only sensible to use coupons on products that have a good margin. Not sustainable as a promotional strategy because customers may only choose the discounted product and never come back. Some businesses have experienced unprofitable Groupon promotions because customers only pick discounted items and only return when there are more discounts to be exploited. Could affect the image of the business as this in some cases may make it look cheap, which in perception may send a message that the quality offered is not good. This strategy could also encourage customers to always wait for discounts and only buy when you are offering discounts.
Also remember that offering discounts, especially to first-time buyers, could alienate loyal customers who are made to feel they deserve the discount more for sticking to the brand.
Conclusion
With the points discussed here, you can see how adding coupon codes to your business could affect its performance. You need to be careful with offering discount codes as this could also damage the business by lowering profitability even with more sales. Only use this strategy if you are sure the revenues to be gained are enough to get the business running smoothly. It is a perfect way to raise cash and you can clear inventory that has been stuck for a long time. Just make sure it does not lead to losses.
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Are you an eCommerce business looking to address the problem of abandoned carts on your platform?
Do you know how you can ensure that more people close the sales and move cart items into final purchases?
Have you tried using some strategies like offering coupons and discounts to sweeten the deal?
According to a new and very important study made by Feefo, it has been found that there are more than 79% of customers abandoning their carts and not closing purchases on e-commerce platforms. The question, which many eCommerce-based companies are asking is- how can I change this?
In this article, we speak to leading digital marketing specialists and ask them about the various strategies, which can be used to ensure that the items are moved from the cart into the final purchase.
Why Consumers leave Items in the Cart According to the Feefo Study?
The survey is very important to read and understand if you want to improve the sales and revenue generation for your e-commerce business.
According to Feefo, most consumers leave items in the cart because of one specific reason- High Prices! In most cases, the prices displayed on the product pages are exclusive of additional costs like taxes, shipping charges, and in some very weird cases, packaging!
According to the study, it is time for eCommerce businesses to start becoming honest and transparent in showcasing prices to the consumers on the product page itself. This may remove the entire magnet strategy of-
lower pricing,
moving to the cart
seeing the higher pricing
however emotional investments and time
ending up with the purchase
Ecommerce businesses need to realize that digital audiences have started to move beyond just baits and value transparency on digital platforms.
The study pointed out specifically to High Shipping Costs as the primary impediment to abandoned carts. Taxes too are something, which most of us take into consideration. However, additional shipping expenditures are still not acceptable to the vast majority.
How the World’s Best Ecommerce Sites Handle the Abandoned Carts Issue?
According to business experts at the best-performing sites, the need of the hour is to help customers at this stage with a small incentive. In other words, customers are already through 80% of the things a business needs to close a sale. At the cart stage, what you need is a small push, which can be offered by brands to the customers.
Not only will this result in the final sales happening, but it will also boost the image of the brand in the eyes of the customer in a positive fashion.
Some of the best businesses go for the following strategies-
Using promotional codes for both new and existing customers.
Taking away the Shipping Charges for customers and showing the discounted price.
Creating personalized packaging and offering incentives to buy.
Having multiple shipping vendors on the business and comparing prices.
Rewarding the customer in other ways (social media shout outs).
Why Building Positive Business Relationships matter for Ecommerce Businesses?
Building a positive brand and making the customer feel special is critical for the success of your e-commerce business. This means that e-commerce businesses need to invest in their communication. In-app messages, email newsletters, WhatsApp communications, etc. are good ways to ensure that you are always having an open channel of communication.
By valuing your existing customers, you will be able to win repeat purchases for your business. Your existing customers can also spread a positive word about your brand to their family and friends, leading to more sales and revenues.
However, taking care of the costs is the number one thing, eCommerce businesses should look to address at all costs. If eCommerce businesses are able to bring their operational costs down, they will be able to further incentivize sales.
You can view the Full Study and Report of the excellent Feefo Study below:
Source: www.feefo.com
This article explores the benefits of partnering with a Utah Professional Employer Organization (PEO) in achieving HR excellence.
It focuses on streamlining HR processes, ensuring compliance and risk management, outsourcing payroll and HR administration, and maximizing employee engagement.
Through an objective and impersonal analysis, this article aims to provide a detailed understanding of how businesses can enhance their HR practices by collaborating with a Utah PEO.
The information presented herein is intended for professionals seeking to optimize their human resource management strategies.
Understanding PEO Services
A professional employer organization or PEO refers to a full-service human resource outsourcing. In some industries, it is also referred to as co-employment. Here, the PEO undergoes several employee administration activities, such as benefits and payroll administration. The business itself does not have to intervene if a dedicated PEO team is working out there.
A few PEOs deal with strategic services, although no two services are the same. Hence, it is crucial to research multiple providers and find the best fit. Experts at a PEO help you to take your business to newer heights. But that’s not all to leverage it within your organization. So, continue reading to know more.
Benefits of Partnering With a Utah PEO
The benefits of partnering with a Utah PEO include improved access to competitive employee benefits and streamlined HR processes. By outsourcing HR functions to a professional employer organization (PEO), businesses can achieve significant cost savings.
A Utah PEO can leverage its purchasing power to negotiate better rates for employee benefits such as health insurance, retirement plans, and disability coverage. This allows small and medium-sized businesses to offer their employees comprehensive benefits packages that rival those offered by larger organizations.
Additionally, partnering with a Utah PEO provides access to expert HR support. The PEO's team of professionals can handle various HR tasks such as payroll processing, tax compliance, and employee onboarding, freeing up valuable time for business owners and ensuring compliance with all relevant regulations.
Overall, the partnership with a Utah PEO offers cost savings and efficient HR support that contribute to the success of businesses in this modern competitive landscape.
Streamlining HR Processes With a Utah PEO
Streamlining HR processes can be achieved through the implementation of efficient strategies. By improving efficiency and reducing costs, organizations can optimize their HR operations to better meet their business objectives.
One strategy that can aid in streamlining HR processes is the use of a Utah Professional Employer Organization (PEO). PEOs offer a range of services, including payroll administration, employee benefits management, and compliance assistance. These services are designed to alleviate administrative burdens as well as enable companies to focus on core business activities.
The PEO model allows for economies of scale by pooling resources across multiple clients, resulting in cost savings and improved efficiency. Additionally, PEOs provide expertise in HR best practices and technology solutions, further enhancing process optimization.
Overall, partnering with a Utah PEO can help businesses streamline their HR processes and achieve greater operational effectiveness.
Compliance and Risk Management With a Utah PEO
Compliance and risk management are important components of effective organizational governance. They can be enhanced through the implementation of strategies offered by professional employer organizations (PEOs).
PEOs provide valuable services such as compliance training and risk assessment to help companies navigate complex regulations and mitigate potential risks.
Compliance training is essential for ensuring that employees understand and adhere to legal requirements, industry standards, and internal policies. It helps organizations avoid penalties, lawsuits, and reputational damage associated with non-compliance.
Risk assessment allows companies to identify potential threats and vulnerabilities in their operations. This enables proactive measures to be taken to minimize or eliminate these risks.
Businesses In Utah That Can Benefit From PEO
Both small and medium-sized enterprises follow the co-employment arrangement. But even the larger organizations might also benefit from it. As a matter of fact, PEOs are the best fit for most industries. Some of the renowned ones are as follows:
Property management and real estate
Computer services and information technology
Dealers and security brokers
Health services
Engineering services
Legal solutions
Auditing, bookkeeping, and accounting
Wholesale
Nonprofits
Insurance sectors
A PEO does handle HR-related tasks but that does not indicate you transfer your organization’s entire control to them. It does not:
Make business-related decisions
Assist with sales, product distribution, and even marketing
Spell out hours, schedules, and rates
Outsourcing Payroll and HR Administration to a Utah PEO
Outsourcing payroll and HR administration to a professional employer organization (PEO) can provide businesses with efficient and cost-effective solutions for managing their human resources functions.
Payroll outsourcing involves delegating the responsibility of processing employee salaries, calculating taxes, and managing benefits to a third-party PEO. This allows businesses to focus on their core competencies while ensuring accurate and timely payment to employees.
Additionally, HR administration outsourcing involves assigning tasks such as employee onboarding, performance management, and compliance with labor laws to the PEO. By utilizing the expertise of a PEO, businesses can benefit from streamlined processes, reduced administrative burdens, improved compliance with regulations, and access to HR professionals who possess up-to-date knowledge in the field.
Overall, outsourcing payroll and HR administration to a Utah PEO can help businesses save time, reduce costs, and enhance efficiency in managing their workforce.
Concluding Words…Maximizing Employee Engagement Through a Utah PEO
Enhancing employee engagement is a crucial factor in fostering a positive work environment and optimizing organizational performance. A Utah PEO can play a significant role in maximizing employee engagement through various strategies that focus on improving workplace culture and enhancing employee satisfaction.
By offering comprehensive HR solutions and support, a Utah PEO can help organizations create an engaging work environment where employees feel valued, motivated, and invested in their work. An organization can easily achieve this by implementing effective communication channels. Thus, it provides opportunities for professional development and growth, recognizing and rewarding employee achievements, promoting work-life balance, and fostering a supportive team atmosphere.
And it’s a wrap on this article! Comment below and share your thoughts on this. Until then, happy reading.
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Intrapreneurs and Entrepreneurs - they sound similar right?
Yeah, they do, but their definition, meaning, and characteristics are totally different from one another. Here is what we know about entrepreneurship.
Read the guide till the end to grab some rich insights.
Who Is An Intrapreneur?
Here is a concise definition.
An intrapreneur is the one who is responsible for developing an innovative project or idea within an organization.
He/she doesn’t face the outsized risks that an entrepreneur doesn’t. However, he possesses the major access to all the capabilities and resources of an established company. To be very specific, the intrapreneur gets the autonomy to work on projects having a considerable impact on organizational development.
The term intrapreneur is an amalgamation of two words like “internal” and “entrepreneur.” In 1978, it was first coined by Elizabeth S. Pinchot and Gifford Pinchot II in a white paper.
How Does Intrapreneurship Work?
You are now well aware of what is an intrapreneur. They are the employees of an organization who are given the responsibilities of working on special ideas and projects. In addition, they are given the freedom and time to develop and grow the project that an entrepreneur would.
Does this sound like they work solo? Well, not really because intrapreneurs have all the capabilities and resources of the firm at their disposal. Additionally, they have different objectives. While an entrepreneur envisions the creation of a company from level 0, the intrapreneur has a broader vision for an established entity.
The visions mainly involve radical changes to company processes, products, or traditions. He applies his skills and experiences directly to implement them on the job.
What Are The Characteristics Of A Good Intrapreneur
I hope, by now the meaning is pretty clear to you? Now, Intrapreneurship has some roles and responsibilities which require some special characteristics. Below, I have listed some of the characteristics an efficient intrapreneur must possess.
1.They Are Passionate About Problem Solving
Angels and Intrapreneurs will agree on this one. Focused intrapreneurs are the ones who are passionate about solving problems and set forth to resolve business-oriented issues.
2.They Are Curious, And Adaptable Enough
When it’s the start of a business, the intrapreneur has to play roles in several sectors such as product management, engineering, and marketing. Hence, angels look for people who are curious, adaptable, and respond to learning and development.
3. They Are Transparent
As an intrapreneur, the fastest and most efficient way to gain the confidence of your sponsors is by showing transparency. If any unwanted circumstance happens, then also, transparency needs to be maintained.
4. They Are Resilient
Intrapreneurs starting a business simply have an idea which they have to work super hard to give a shape. That’s why they need to be highly resilient since it’s likely they would come across a plethora of obstacles throughout their journey.
Pros And Cons Of Intrapreneurship
Here is a critical analysis of Intrapreneurship I have explained through an evaluation of its pros and cons. Take a look at the table below:
Pros Of IntrapreneurshipCons of IntrapreneurshipIt decreases the financial risk on the innovatorThe glory you enjoy is not for you only, it’s shared.Makes use of all the organizational talent and resourcesThere is high potential for conflicts with the other members.Increases the delivery of better services, products, or support.Returns are generally less in comparison to the entrepreneurs.Enlarges your reputation and develops your network.There are a myriad of risks pertaining to failureIt’s a stepping stone to entrepreneurshipYou will still have a boss monitoring you
Companies Around The World Having Intrapreneurs
Here are some leading tech giants around the world who support Intrapreneurship just like different types of entrepreneurs:
GoogleMicrosoftShutterstockIntelFacebookAppleGeneral MotorsVirgin
Frequently Asked Questions (FAQs):
Q1. What Does Intrapreneur Mean? An Intrapreneur is an employee who is given the support and authority to create a new service or product. Unlike entrepreneurs, they have no concern about whether or not the product would become a revenue source for the company. Q2. What Is Intrapreneur Example? One of the greatest examples of Intrapreneurship is Dreamworks Animation. It’s a media behemoth that gave classic works like Madagascar and Kung Fu Panda. They also offer classes on script writing to the animators. Q3. What Are The Types Of Intrapreneurs? The 3 types of Intrapreneur are as follows:1. Advocate, coming from a customer-facing role 2. The creator coming from an internal-facing role3. The change maker coming from an external-business-facing role. Q4. What Is The Difference Between Intrapreneurs And Entrepreneurs? The main difference between Intrapreneur and Entrepreneur is that an entrepreneur is a ground-up-and-go person when it comes to their own money. On the other hand, an intrapreneur is someone who starts steaming from inside a large company. That’s all about Entrepreneur Vs Intrapreneur.
The Bottom Line
That’s all we had to say about Intrapreneurs. They are overlooked often in the realm of entrepreneurship. However, with the world-changing innovation coming up, established corporations are prioritizing them. Wanna learn how to become an intrapreneur and Intrapreneur Vs Entrepreneur in more detail? Then keep an eye out on our website as we will be coming up with a guide to that.
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