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Give us a call
Call +44 (0) 1633 509 878
Newport, UK Coldra Wood Chepstow Road, NP18 2YB
Give us a call
Call +1 888-979-7818
Ottawa, CA Wesley Clover Intl. 390 March Road, Suite 110, Ottawa, ON
Go to Contact us page

Disadvantages of Coupons

3 min read

Disadvantages of coupons for your business

The gift voucher market is exploding. While revenue reward is high, you won’t maximise your revenue potential without careful management. 
In this blog post, we look at some common disadvantages of coupons and find you the best solutions to manage these.

What is a gift coupon?

A gift coupon is another name for gift cards, gift vouchers, gift certificates and gift experiences. Throughout this post, we will refer to any of these definitions. 
It is important to be aware of some potential disadvantages when utilising coupons.
Let’s take a look at some of the disadvantages of vouchers. 

Common disadvantages of coupons

What are the disadvantages of gift cards?

While gift vouchers can bring numerous benefits to your business, they also present specific challenges if mismanaged. 

In this section, we will explore some of the most common problems when selling gift vouchers so that you can be better prepared for any potential issues.

  1. Disadvantages of vouchers: Understanding the Legal Requirements

Like most industries, a specific legal requirement exists to sell gift coupons. Understanding the law and knowing how to comply is essential for business success. 

In some countries, you could be heavily fined if you put the wrong expiry dates on your coupons. 

Here are some of the basic legal requirements for selling gift vouchers:

Gift Voucher Laws for the UK and Ireland?

Gift Voucher Laws for the US. 

If you need clarification on the laws in your area, contact a lawyer or accounting professional for help.

  1. Disadvantages of vouchers: Weak Marketing Strategies

Selling gift vouchers with weak marketing strategies can be a big business problem.

With the right approach, businesses can reach their target audience and maximise their profits from selling gift vouchers. 

A well-thought-out marketing strategy is essential for companies to succeed in this competitive market. 

It should include creative campaigns, digital and social media presence, and effective customer communication. 

  1. Disadvantages of vouchers: Poor Gift Voucher Designs

Gift Experiences are a great way to show someone you care. But it can be a real letdown if the design is ugly. 

That's why ensuring your gift card designs are attractive and current is essential. 

Not only will this make your gift experiences more desirable, but it will also help ensure they will be used and appreciated by the recipient. 

Unfortunately, many businesses ignore their gift card designs, making customers uninterested.

To ensure your gift cards are successful, you must invest time and effort into creating attractive and modern designs that appeal to your target audience.

Use a high-quality card for a physical voucher with a wallet. Likewise, ensure digital copies of your gift card are attractive.

  1. Disadvantages of vouchers: Managing Gift Voucher Discounts

How you promote your gift vouchers has to be considered very carefully. You should be aware of the disadvantages of discounts. 

Depending on your business type and target audience, how you use discounting and promotions can positively/ negatively affect your branding. 

If you discount too heavily and you’re in the luxury hotel market, you could potentially harm your ‘exclusive’ branding. However, if you don’t discount for significant holidays, you could risk losing all customers to your competition. 

Managing customer expectations based on your voucher prices is important. 

We discuss promotions and discounting heavily in this blog post here:

  1. Disadvantages of vouchers: Limited Delivery Options

Providing multiple delivery options is essential for businesses to remain competitive. When companies fail to deliver a choice of delivery options, it can lead to customer dissatisfaction and even lost sales.

With the rise of online shopping, customers have become accustomed to having various delivery options available. 

Ensure your gift vouchers are available in 

  • Digital form over email
  • First class for fast delivery
  • Options for a luxury box add-on

Make your delivery options clear on the gift card product description. 

  1. Disadvantages of vouchers: Limited Payment Options

Limited payment options can be a significant problem for businesses. 

Not having access to various payment options can prevent customers from purchasing, resulting in lost revenue. 

Additionally, companies may have to pay additional fees for processing payments through specific payment gateways or methods, which can add up quickly. 

As such, businesses must ensure they have access to multiple payment options so customers can make purchases without hassle. Multiple options help increase sales and customer satisfaction.

A great option is to provide a payment plan. Going with payment plan providers such as Klarna, Clear Pay and PayPal Buy Now- Pay Later can increase opportunities for more significant purchases. 

How to manage your gift cards properly 

Using an app to manage gift cards can transform your service. 

A gift card management system is the perfect solution to all your mistakes. With a system, you can:

  • Attract new customers- building on your existing customer base
  • Easily keep track of all your gift cards and their balances
  • Quickly redeem coupon codes to avoid multiple uses
  • Personalise gift cards to suit individuals
  • Utilise Seach engine optimisation to boost your gift card visibility 
  • Make significantly more sales
  • Easily group gift cards for discounts and promotions 
  • A beautiful design 
  • An easy-to-amend product page for your gift card store
  • Flexibility in changing the design of your gift cards and the gift card products on your online store
  • Keep track of analytics to see which promotions work well and forecast the best time to run gift card campaigns 

We’ve written a blog post on how to manage your gift cards effectively. See it here:


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