Are you taking advantage of the power of coupons? Store-wide discounts and everyday low prices are great, but there is something about a coupon that people really like. Middle income people. Rich people. High discounts. Low discounts. It doesn’t matter. People just like coupons.
According to fast.MAP’s annual Marketing-GAP study (2011), 97% of U.K. consumers surveyed are using coupons. Moreover, a 20% face value is enough to motivate more than half of shoppers to redeem their coupons. A 50% face value will motivate three quarters to redeem them.
This data is not alone. An A.C. Nielsen study found that 60% of U.S. consumers actively look for coupons. An article in the Wall Street Journal (“In a Pinch, Snip” 2012) found that 54% of U.S. shoppers surveyed said they had already stepped up use of coupons. Fast.MAP found that three in five consumers redeem coupons “occasionally” and three in 10 redeem them “regularly.”
Despite the proven power of coupons, fast.MAP found that marketers continue to underestimate their value. In fact, for the seventh year running, the research firm’s Marketing-GAP survey found that marketers expected fewer than one-quarter of consumers to redeem 20% coupons and less than three in 10 to redeem 50% coupons. That’s a big gap with consumers’ self-reported behavior!
Here are five reasons that you should not underestimate the value of coupons:
1. Coupons sell more than the product discounted. You may not make a ton of money on the product or service you are discounting, but once you get those customers in the door, chances are they’ll walk out with more.
2. Coupons expand your market area. Consumers cannot resist a deal. When the coupon is good enough, people will travel significant distances to redeem them. Once these shoppers are in the door, the rest is up to you.
3. Coupons steal business from competitors. No matter how loyal consumers may be to their favorite brands, coupons have a powerful draw. With a coupon, many will try your brand at least once.
4. Coupons re-engage inactive customers. Sometimes customers get lazy or disengaged with your brand. Coupons get customers re-engaged.
5. Coupons track and prove results. Coupons are one of the most trackable promotions. Use coupon codes to track the results of specific campaigns, marketing channels, or promotions. Or try serializing codes to track not only the results of the larger campaign, but the behavior of individual respondents.
Coupons are a simple, inexpensive way to boost the power of your marketing. If you are looking for ideas to jumpstart your couponing efforts, give us a call. We are happy to help.