Coupons – a traditional marketing tactic that has seen a renaissance in recent years. With shows like “Extreme Couponing” and entire blogs and groups dedicated to the art of extreme couponing, it can’t be denied that there is a significant rise in consumer awareness about coupons.
Does that mean that coupons still work as a sales promotion? Absolutely. Since 2011, the use of online coupons has increased 13%. This increase shows that coupons are valuable, and that they directly impact the loyalty of customers.
Ninety-two percent of consumers used coupons in 2013. That has only continued to rise. Both mobile and direct mail coupons are utilized by consumers to get the most bang for their buck. While people who use the coupons said that they will switch stores to get great deals, 91% of them also said that they will visit a retailer again after being offered a coupon.
So what does this mean for your business? The first is understanding who to target with your coupons. We recommend leveraging a database to find the right consumers from a demographic standpoint. You are able to parse it down by gender, age, income and a myriad of other information layers. Next, choose coupons that promote new or undersold products – consumers said that they were more likely to try a new product if a coupon was offered.