Are Coupons Effective?
Coupons are a cost-effective and measurable way to attract new customers, sell more products, and reactivate customers you may have lost to competitors. Coupons work by interfering with consumers’ cost-benefit analysis before making any purchasing decision. Far from that, most research shows that the number of Americans who use coupons and other offers regularly exceeds 90 percent. In the midst of our digital age, the opportunity to save money remains attractive to consumers, even when the method to do so is a paper coupon.
Redeeming coupons via mobile phone is not news for the marketing industry. Digital marketing is an efficient and simple way to promote products and gain new customers. Most mobile coupon statistics indicate that the online coupon market will grow as both consumers and retailers switch to online shopping. Of all the reasons customers buy something, saving money is at the top of the list.
This need to save is the reason why discount coupons have become an important part of running a successful business. Studies show that customers spend 25% more money with a coupon than without one. There’s even a popular TV show that follows people as they shop hundreds of products with coupons. Coupons are valuable for e-commerce because they inspire customers to take action.
In fact, 48% of customers buy sooner when they have a coupon, and 37% of customers buy more than normal. To make your offer stand out from the competition, do some research to see what types of offers other retailers have available. Then find a way to go one step further. For example, if they offer customers a 10% discount on their first purchase, do the same, but also add free shipping.
Also include social media in your coupon marketing strategy, as 71% of customers follow brands for coupon purposes and 74% use social media to decide whether to buy something. There are billions of users on popular social media channels, such as Instagram, Facebook and Twitter, so your strategy should include sharing discounts regularly. This amount of exposure is sure to grab your attention and attract many different types of customers. Nearly 90% of the generation stated that they would try a new brand or product if offered a coupon or discount.
As a result, it’s important to consider the value of a coupon campaign to the company and whether the discount will generate enough new sales revenue in the long term to offset the cost of the campaign. Digital coupons that can be redeemed with a smartphone are usually sent to the user via text message or an application. Coupons can boost business to your store and help create a discount marketing strategy to increase your long-term repeat business or sales per customer. In addition, an expiration date can be set to create a sense of urgency, encouraging new or existing customers to buy your product using the coupon.
In addition to that, many major retailers offer coupons to manufacturers, which further incentivizes customers to download the app. When newspapers were dethroned by their online counterparts, it seemed that cutting coupons or receiving them in the mail would eventually end. This is because coupons are seen as a kind of “handout” for the poorest people and, as a result, some consumers prefer not to use them. Coupon psychology emphasizes the inherent value that consumers can achieve, even if that value is not significantly valuable.
While coupons and rebates are essentially the same mechanism, both offer some kind of incentive, usually as a discount, to generate an immediate purchase and increase the brand’s market share and sales, because they operate on a different timeframe (coupons are an immediate redemption, while refunds require some action on the part of the consumer after the purchase), its effectiveness and cost to the brand will be different. About 67% of surveyed brands used social media to announce flash sales, coupon offers and product discounts. Keep in mind that sharing discounts with your audience is more strategic than publishing the same type of coupons repeatedly. In addition, coupons can build loyalty to existing customers by using the discount as a reward to ensure that they continue shopping in your store.
Paper coupons have accounted for about 90% of coupon distribution in each of the past three years and dictate the overall direction of distribution trends. For example, Square, one of the most popular web platforms for shopping online, has a simple interface for managing coupon codes. Finally, according to coupon statistics from different sources, customers have admitted that they spend more money when using coupons. .
References
