Many consumers eagerly await the arrival of coupons to help them thrift their way to savings, but plenty of retailers are just as eager about issuing coupons. If this latter reaction comes as a surprise, your brand has yet to realize the amazing potential coupons can offer.
More so than most forms of marketing, coupons can provide immediate, tangible returns and generate ample amounts of affinity from customers. In a digital age where increasing amounts of ads are seen as mere noise, coupons stand out from the crowd by offering real value.
Here are some of the specific ways coupons can enhance a retail brand’s reputation and lift sales:
Bring People into the Store
The most immediate power of a coupon is its ability to prompt action. Offering a customer something for nothing is a great way to motivate buying behavior. They will be much more likely to visit your store — either online or in person — and be exposed to other items you offer.
In-store coupons are particularly effective. Studies show that only a third of all coupons are used online, meaning a customer receiving a coupon must walk past in-store display ads, aisle end-caps and shelves upon shelves of other merchandise to get to the item they want. If they happen to notice something else they want or need, they will be more prone to grab it since they are already at the location.
Even if the customer breezes past in-store displays and only buys the item on the coupon, they have been exposed to your store’s environment. For physical retail, that means knowing exactly where the store is located, what it has to offer and the unique way it approaches business. For eCommerce sales, the customer will have gone through the checkout process and likely have entered and stored information that will make their next checkout much quicker.
Both scenarios acclimate the customer to the idea of making purchases and break through inertia barriers that stymie sales from first-time customers. 91% of coupon redeemers have reported that they will be likely to buy from a retailer again after their first purchase.
Coupons have an amazing psychological effect on people that gives retailers the power to lift sales revenue and purchase size. Studies indicate that coupon clippers spent an average of $216 on their most recent shopping trip compared to others who spend an average of $122.
The offer of a discount makes the buyer feel as if they have accomplished something, freeing up room for more spending. For instance, a shopper with a $100 a week budget receiving a $10 off coupon will now be likely to spend their full $110 available dollars rather than tucking away the $10 they saved for later.
Coupons that offer milestone rewards like “buy three items, get one 50% off!” also bring in more people and encourage larger ticket sizes. 57 percent of shoppers indicate that they would not have made a purchase without a coupon first, and this shopping behavior can be leveraged to increase purchasing behavior.
Customers do not like being bombarded with ads they see as irrelevant. So-called “interruption marketing” like TV commercials and typical online display ads can be seen as invading the person’s mental space with information they did not ask for. They can often feel like brands are trying too desperately to get something from them.
With coupons, you are presenting something with an inherent value. Rather than trying to convince a consumer of something, you are merely setting out a bargain for them to either take advantage of or ignore. As a result, many customers see coupons as an act of generosity rather than a pushy sales pitch. These types of activities can generate customer loyalty and positive word-of-mouth for brands.
To take advantage of all the benefits coupons can provide on a simple-to-manage offer platform, consider allowing Thrive Commerce to provide you with a turnkey Savings Center. We help you control the customer experience with a fully SEO optimized Savings Center packed with enterprise features. Visit our website to learn more.