Clipper or Clicker: How Coupons Can Work Today
Do you remember FSI’s (free-standing inserts) and Sunday circular coupons? Those tools were a core part of marketing products in the grocery channel in the pre-digital age. You could clip and save big bucks weekly with a pair of scissors and a copy of your Sunday newspaper.
Supermarkets carry over 50,000 products, and about 80% of new products fail within the first eighteen months. How can you stay top of mind and gain trial and awareness? With DTC marketing shifting the dynamic of retail products, what role can coupons play in your marketing mix?
Today, businesses are increasingly using digital coupons to sell to their customers because they are an excellent method to thank existing and new clientele. Digital coupons, or e-coupons, are excellent strategies for companies in various industries, not just grocery. They allow businesses to use them in place of printed, manually distributed versions.
New research by Inmar Intelligence finds that 54 percent of all shoppers recently purchased a new brand because it was less expensive. However, nearly a third said they were influenced by a digital coupon.
With inflation challenging consumers with higher grocery prices, shoppers are open to ways to find discounts on that phone that is in their hands all day long.
Coupons have existed for a long time, and now technological advancement and social media’s reach have made it easy for marketers to give discounts that matter to customers. With e-coupons, consumers can comfortably access a product while on a budget and even make more purchases in the future.
How Digital Coupons Influence Consumer Behavior
Everyone loves free things and discounts on purchases.
Studies find that buyers are likely to recommend a product when it offers discounts, giving free visibility to the business that provides the coupons. Additionally, it encourages customers to keep seeking products from the same seller.
About 91% of consumers indicated loyalty to a seller that offers relevant discounts and coupons — and about 67% of consumers determine where to shop based on whether or not digital coupons are accepted.
Digital coupons have become a powerful marketing technique that generates revenue consistently. Thanks to social media, consumers can now give recommendations and share coupons across several digital channels with just a few clicks.
Considering 99% of buyers have used coupons at least once in their lives, a business offering coupons have much to gain.
Studies find that consumers stimulated by coupons – those who would rather spend time looking for a good deal – are more likely to buy from a brand that offers digital coupons. There are many types of coupons, but the main takeaway from experts is that providing discounts on purchases can reduce cart abandonment during checkout.
The effect of e-coupons on consumer behavior is impacted by the type of coupon and the strategies used in presenting discounts to buyers. For example, offering a coupon-based discount on a purchase could be more likely to convince one audience to convert, while a coupon offering free items with a purchase could be more effective elsewhere. It pays to know your audience.
Advantages and Disadvantages of Digital Coupons
The advantages of e-coupons in a business plan seem clear-cut. However, as much as digital discounts favor consumers and marketers alike, they sometimes have adverse effects.
Pros
Up to 75% of consumers consistently do research on the price and other factors despite identifying as “brand-driven.” In other words, brand loyalty isn’t a given, but coupons can tilt the balance. Since most buyers use digital coupons to save money, they are an excellent method to entice budget-conscious customers to shop with you and stick with you.
Coupon redeemers purchase products from businesses more frequently than those who don’t use coupons. As a result, prompting consumers to spend less will encourage them to buy more.
Finally, digital coupons deliver a high conversion rate.
Unlike paper coupons, you can’t forget digital coupons at home or misplace them in your car — which is crucial because 79% of consumers will not buy an item if they forget its coupon. Because digital coupons are easily accessible, consumers are likelier to follow through with the purchase.
Cons
It can be challenging for companies to deploy coupons as a successful component of their marketing plan. Retailers frequently seek to provide their target customers with exceptional coupons and discounts but balancing the discount with the company’s desired profits is tricky.
Some brands have found great success with discounts of around 15%, while others might find different coupon amounts resonate better with their audience. Furthermore, compounding discounts – say 20% to 25% – might encourage more significant numbers of high-volume purchasers.
However, because digital coupons can be shared easily, people are sending, tweeting, and posting about those supposedly “exclusive” deals online. It consequently gets difficult for a brand to track voucher redemption metrics. Additionally, running many discount deals at once only makes things more confusing.
When to Use Digital Coupons
Marketers often need to keep up with trends and understand their audience’s behavior toward their products. This result can be achieved through several processes, including digital surveys or ratings. However, customers are only likely to participate in these activities if they gain something from them. Incentives are a must-have.
A business can influence its target audience by offering discounts. For example, when Walmart introduced self-checkout, it used coupons to encourage customers to use the new service. This approach increased cart size compared to existing customers.
Digital coupons are used to attract new customers. When a consumer makes a first-time purchase, you might invite them to take advantage of a particular savings promotion or offer free shipping. Again, knowing what your customers are likely to value goes a long way.
Digital coupons or promotions can also stimulate consumers to act quicker and take an item in their virtual or physical shopping cart and buy it now – versus waiting.
Fuel Transactions With e-Coupons
Digital coupons have been driving sales across the digital retail industry for years. Building a marketing campaign using e-coupons can help your brand gain trial, whether you are a small business or a retail veteran.
When you understand your audience, you can learn what they value, then imagine what kinds of promotions and discounts might move them to make a purchase and remain a loyal supporter.
Digital coupons – no scissors necessary.
Photo by Perry Merrity II on Unsplash
Guest Post Author: Zac Amos is the Features Editor at ReHack, where he writes about cybersecurity, information technology, and other tech topics. On Sundays, he doesn’t sit around clipping coupons with a scissor.
You can set up a time to chat with me about your marketing challenges using my calendar. Email me jeffslater@themarketingsage.com Call me. 919 720 0995. The conversation is free, and we can explore if working together makes sense. Watch a short video about working with me.
