Pros and Cons of Social Media Coupons

Here we have laid out the Pros and Cons of Social Media Coupons. The idea of social Media Coupons are growing at a Pros and Cons of Social Mediastaggering rate. I know so many people who get emailed updates daily from places like Living Social and Groupon. These companies email about their daily or weekly website deals. It seems that every company out there is willing to at least try it. Companies as large as Whole Foods has stuck their toe in the water. There some concerns that we have when our clients use both of these sites. The sales pitch is how easy it is up-sell the clients when they walk through the door. The reason the pitch is to up sell is that the social media coupon is 50% of the original price. From your 50% sales sacrifice the social media company gets half leaving the store owner with only 25% of the original price. So there are two sides to this coin that most people do not consider. First many people can’t get past only 25% of their normal market price. Second these platforms have huge followings, and to reach your target market you have to be very picky about your offer. I have listed some of the basic pros and cons of Social Media Coupons.

The pro side to this is:

  • most of the time it increases your foot traffic in the door, and it will also increase your website traffic.
  • You will also be able to reach people that you never could before.
  • A link from this website adds a certain amount of trust from google.
  • Increased phone calls
  • Ability to gain personal information data for further customer communication
  • Almost Immediate action from the end user of the social media coupon platform
  • Potential up sales
  • Potential for word of mouth referrals

The con (flip) side:

  • Most of the customers who purchase the coupon only use the coupon and will not return unless another coupon comes out
  • The amount of time it takes to assist these customers
  • Time spent tracking coupons, and conversions for up sales
  • The Deal has to be very descriptive or you will deal with a very unhappy clientele
  •  At times it can take 60 days from the time a Deal/ Coupon is purchased to get paid


When considering some type of Coupon think about exactly what you are after. I personally look at it like this: 80% of the people who purchase your coupon will not return again and will never speak your name. Sounds discouraging, but the 20% is what you are after anyways. So if over 90 days you sold 100 coupons, and your employees were diligent in doing their job then you would have 20 new repeat customers. You would also have their important information to you, things like name email, birth month…. Allowing you to contact them at predetermined times. The loss on the product needs to be considered as an advertising cost to reach your ideal clientele.  I can not stress enough the size of the followings that many of these platforms have. Everybody want to have more bang for the buck! So please be very careful when choosing the right platform and the right product to promote to get that customer through the front door.

If you are considering something like Groupon or Living Social for your small or medium business, and would like assistance to facilitate a successful campaign please let us know. We are always happy to assist you!

Thank you for reading our Pros and Cons of Social Media Coupons.

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