Task C Report
Produce a report based on research of digital vouchers. The report must include:
A list of four sources of information about digital vouchers (4 marks)
A description of four disadvantages of using digital vouchers (4 marks)
- If too many offers are being made regularly then it could have a negative affect on the brands image as it may make them look cheap.
- Using digital vouchers could be a risk of losing money if the customer does not come back and purchase more stock.
- Customers who are already paying and are willing to pay the full price will start paying less if a voucher is being offered to them.
- digital vouchers could increase the chances of fraud with redemption issues.
An explanation, by giving one example for each, how to overcome the barriers of using
digital vouchers for the following:
– customer acquisition: By making sure the voucher is restricted to one use per new account/customer.
– customer retention: coupons to returning customers can have expiry dates to encourage customers to come back and use the coupon in a certain time period. This will keep the customer engaged and increase sales.