Coupons can help you drive sales to your business. But how? We will look into that.
The very first coupon is attributed to John Pemberton, the inventor of Coca-Cola, in 1889. In order to get Coke syrup to sell in local pharmacies in Atlanta, Pemberton offered two free gallons of the stuff to local merchants in return for their list of customer addresses. Then, in an unprecedented move of marketing genius, Pemberton sent a coupon for a free glass of the elixir to every customer on the list. The effect was immediate: people loved Coke and the ripples from that one endeavor led to a billion-dollar corporation.
Since that time, coupons basically remained similar, with some small variations, for over a hundred years. There were some innovations
But the digital revolution has now overhauled the idea of how people shop with discounts. If you aren’t using the most innovative strategies, you are being left in the dust by competitors.
According to a series of coupon statistics compiled by Wikibuy, 90 percent of people use coupons when they shop. But discounts are not just as simple as giving people a percentage off and waiting for revenue to start pouring in. When creating a coupon it is important to assess:
- Do you have the inventory to handle extra purchases made if the coupon is successful?
- Are you considering the percentage loss that you will have to absorb if more people use the coupon than you expect?
- How are you planning to get the word out about your coupon or discount?
- What is the way people should redeem the coupon and what other information can you glean from them (addresses, emails, etc) in order to make the exchange a value proposition?
Many business owners question the efficacy of coupons. Likely this is because some have experienced failed campaigns. It is difficult sometimes to make people properly aware of an offer and because of this, it can seem futile to create the discount in the first place.
Also, owners are wary that a discount can make their products seem cheap or that they have lower intrinsic value. Moreover, some sales teams argue: Why not pass any savings along to customers? Why not simply prices lower without offering a discount?
However, companies get rid of coupon programs at their peril. In 2012, J.C. Penney saw sales plummet when they decided to forget about discounts. Why would that be? The effect is actually psychological. People like to feel as though they are getting deals and lower pricing doesn’t quite activate that nerve center. So, what can companies do to make sure they are scratching that itch?
Clipping coupons is quickly becoming a thing of the past. Today, digital coupons have dramatically changed the way people shop. The industry of deals is expanding.
Between 2017 and 2022 it is expected that digital coupon redemption will grow over $40 billion with over 50 percent growth by 2025. It represents a huge shift with digital coupon redemption raising over 90 percent in just three years.
Today, customers expect deals to be available online – over 50 percent say they prefer only digital deals and 30 percent want them sent directly to their mobile phones. Another fact you might not realize is that the hunt for deals is becoming easier thanks to online coupons becoming more available via websites like Raise or via email campaigns. Though while deals can be easier to find, that does not mean people are spending less time looking for them.
Fifty-three percent of consumers say they spend more than two hours per week looking for deals Unsurprisingly, perhaps the parental demographic invest even more time, and they are up to four hours per week. That same doubling of deal searching is also rising in the millennial demographic. The next generation is deeply invested in seeking out deals and if you aren’t offering something you will be outdone by competitors.
There are many ways you can distribute your coupons that are gaining in efficacy online, including:
- Email: E-blasts are effective ways to send out specific offers and with a streamlined mail platform it is possible to target emails to specific customers or try out A and B campaigns to see what is landing.
- Social media: Over 70 percent of consumers say they have followed a brand just to see if they can get discounts or deals.
- Loyalty programs: Over 90 percent of consumers will consider joining a loyalty program if it means a deal or discount.
With all of these methods, it’s important to keep your angle shifting and evolving. You may find one method that works well for gaining new customers, but don’t forget that customer retention can be every bit as important as finding new ones.
So far, we’ve demonstrated that coupons are getting a great deal of use, but is that translating to revenue for the companies and products they represent?
Statistics demonstrate that coupons and deals strongly affect consumer behavior making them almost 50 percent more likely to consume faster than normal, and 25 percent more likely to buy more than they would have otherwise.
It’s also crucial for brand recognition, with almost 40 percent of people saying they’ve purchased from a brand they had never heard of previously because of a coupon.
Recommended Read: How To Run WooCommerce Flash Sales and Increase Sales?
According to recent research, almost 70 percent of customers say that coupons breed loyalty to a brand. They are enticed by exclusive offers, and over 50 percent said that these kinds of offers make them feel rewarded.
There are so many success stories regarding digital coupons that it would be foolish not to take these into account when looking to create your next deal or initiative. Ultimately, the question is how best to leverage your digital assets to craft the most far-reaching and useful deal. And remember, unlike in the days of the first Coca-Cola coupon, the industry is rapidly evolving.
So, if you haven’t started to promote your business with coupons, then it is a great time to start. It has great potential to drive sales. Don’t miss this!
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Note: The article on Digital Coupon Statistics was originally published by Luke Fernandez and was last edited by Editorial Team to improve the quality of the article. If you have quality content to contribute, proceed with our guest blogging guidelines.