Coupons

Part
01
of three
Part
01

Coupons and Brand Loyalty

Personalized reward coupons and in-app coupons are two best practices for using coupons to build brand loyalty.

PERSONALIZED REWARD COUPONS

  • Personalized reward coupons differ from others in that it has several discount values, better diversity, and relevance. Its unique code reduces fraud and allows for better tracking while helping to control the company's promotional budget.
  • Rewarding existing customers with personalized reward coupons are a great way to ensure that they value a company over its competitors. Brands can send personal emails to customers with personalized rewards that are only redeemable via a specific code.
WHY IT IS THE BEST PRACTICE
  • About 76% of customers believe that receiving personalized discount offers based on their purchase history is essential.
  • Also, personalized coupons propel the consumer for the next purchase.
EXAMPLES
  • Walgreens provides personalized coupons inside its app.

IN-APP COUPONS

  • Mobile apps allow companies to create and promote offers on time.
  • In-app coupons can be used as part of a broader customer loyalty program, in which businesses encourage customers to perform certain actions that will give them access to a unique benefit in the form of coupons on their next purchase. The company should, however, ensure that the coupon message is short and clear, easy to read on all screen sizes, and easy to redeem.
  • A simple referral program to access in-app coupons is a great way to drive customer retention while building customer loyalty.
WHY IT IS THE BEST PRACTICE
  • Almost half of the customers surveyed (49%) prefer landing on a mobile coupon page instead of any app download page or e-commerce page.
  • Also, about 44% of millennial customers report having searched for coupons on their mobile devices.
  • "By delivering mobile coupons that feel natural, seamless, and integrated with messaging, consumers will be more apt to engage and spread the word."
EXAMPLES
  • Uber uses a referral program to reward its customers with ride credits.
  • Starbucks provides its customers with the option of sharing coupons with their friends via its mobile app.
Part
02
of three
Part
02

Using Coupons: Barriers, Part 2

The three additional barriers people cite for not using coupons include increased use of mobile devices for digital deals, discounts and promotions, encouragement of over-buying, and disallowance of coupons in some stores.

Increased Use of Mobile Devices for Digital Deals, Discounts, and Promotions

  • People cite the increased use of mobile devices for digital deals, discounts and promotions for the decline in coupon use, especially with the proliferation of smartphones, where a growing number use their cell phones to redeem offers at the retail locations.
  • Historically, people did not care much about mobile coupons due to minimal consumer smartphone penetration but are today increasingly being deployed in mobile promotions and other shopping deals.
  • Mobile device use prevents people from using coupons because with the advancement in technology, consumers are demanding coupons and deals on their phones in increasing numbers thus leading to a declined interest in coupon usage.

Encouragement of Over-buying

3. Some stores don’t allow coupons

  • Some customers also cite the fact that not all stores allow coupons. These tend to be those that are not part of a national or regional chain. If one has coupons, they fear they might only be limited to use them at stores that accept them.
  • Others also cite some coupons being misleading, especially in the type of language used in the fine print, where the coupons end up giving customers more hassle than it’s worth by saying they can only be used in certain stores.
  • This prevents customers from using coupons if they are only surrounded by stores that do not accept them — even manufacturer’s coupons — causing them time wastage while clipping and saving without possible use.
Part
03
of three
Part
03

Using Coupons: Motivations, Part 2

Two additional motivators people have for using coupons are that there are massive amounts of coupons readily available. According to Statista, 307 billion coupons were available for Americans to use in 2016. Free products earned through the use of coupons also motivate Americans to use coupons. Detailed information is below.

There are Many Coupons to Claim

  • According to the 2019 Coupon and Promo Code Use Study that surveyed over 2000 consumer participants in the United States, 92% of respondents said that they used coupons for making purchases in the past year. Also, the use of coupons among baby boomers was 96% and paper coupon use among millennials was 46%.
  • As per the Eur/Electronic Urban Report, people in the United States are motivated to use coupons because they are available in massive numbers. Statista states that 307 billion coupons were distributed in the United States in 2016 and only around two billion were redeemed. Besides, the United States consumer packaged goods experts also reveal that the industry distributes coupons worth $400 billion, but just $4 billion coupons are redeemed. According to Wikibuy, 48% of companies in the United States use mobile coupons for marketing. The availability of coupons in big numbers is, therefore, one of the main motivators to use them.
  • Also, 90% of Americans use coupons and Slickdeals.net, Ebates, and Groupon are the most-visited coupon websites in the United States. By March 2019, Slickdeals was the most popular coupon platform with an average of 68 million monthly visits. Groupon was second with 51 million visits per month.

Coupons Enable People to Enjoy Free Items

  • According to Eur/Electronic Urban Report, Americans are motivated to use coupons as they enable consumers to get many free products and services. Many coupons offer consumers the opportunity to buy one item and get another for free, mainly in sales.
  • When consumers use coupons to purchase discounted items, they can buy up to four times the product using the money for one product. This reduces the cost of the item to a quarter of the original price. It enables the consumer to grow their stockpile and purchase fewer products in the future. Some consumers use stockpiling "to offset the rise in food prices." stockpiling can become addictive, but sticking to a strict budget will keep things under control.
  • Stockpiling free items that consumers get from using coupons can be addictive. This is because some people stockpile just for the sake of it. However, consumers can prevent this from happening by sticking to a strict budget.
Sources
Sources