Promotional Guidance

Coupon Promotions

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Instore Coupons – why Brands should rewarding customers with coupons

Coupons are arguably one of the oldest forms of promotions. As technology has evolved, the traditional coupon has stood the test of time and continues to be present and relevant in the lives of our busy consumers. The concept is straightforward to understand, simple to deliver and importantly, easy to track and measure results. In this blog, we explain why we think Coupons are here to stay, and why Brands should love rewarding customers with coupons.

According to research by intelligent commerce specialists Inmar, ‘88% of surveyed shoppers used at least one coupon in the last three months’. This shows a highly engaged audience with appetite to participate in a promotion.

Those coupons influenced their shopping decisions and drove awareness of a brand. A coupon promotion is a powerful and engaging mechanic.

Versatile reward method: coupons can be set-up an array of ways. A money-off-next-purchase coupon, a free product coupon, a store specific coupon all attached to the purchase of one particular product or a coupon being handed out at a sampling event. Each method will garner different results and achieve different objectives for a brand. Its important to know what the objectives of the promotion is from the outset, to ensure the right mechanic and reward mechanisms are in place to achieve the results desired.

Customer Loyalty: There’s no doubt, that offering coupons encourages customers to return to the store and purchase a specific product, thereby fostering loyalty. When customers are targeted with a coupon campaign and see a brand is wanting to offer them discounts or special offers, they are more likely to choose that brand over competitors at their point of purchase. This not only increases the chances of initial sales, but also increases the chances of repeat purchases of your product, hence driving customer loyalty.

Increase Sales: Coupons can drive immediate sales by incentivizing customers to make purchases they may have otherwise postponed. By ensuring coupons have a short redemption period, you can drive immediacy in their purchase decision making as consumers won’t want to miss out on the chance to redeem their coupon. This is particularly relevant in concentrated product sectors, where you may want to stand out from the crowd of competitors and see a spike in sales. The perception of getting a deal or saving money often prompts customers to buy more or drive trial of a new product.

Targeted Marketing: Coupons allow brands to target specific customer segments based on their purchasing behaviour. By offering coupons in-store, brands can tailor promotions to customers who are already engaging with their products, thus increasing the likelihood of conversion. Coupons can also be delivered in the form of a Door Drop, where the coupon will be delivered directly to the consumer’s home. This drives interaction with your brand threefold as families interact with your coupon leaflet within their home environment.

Data Collection: Coupons can serve as a tool for collecting valuable customer data. Different data sets can be collected pre-and post coupon redemption. Pre redemption, valuable first party data can be requested, with the reward to consumers being the coupon. When customers redeem coupons in-store, brands can track their purchases and preferences, helping to refine future marketing strategies and product offerings.

In-Store Experience: Offering coupons in-store can enhance the overall shopping experience. Customers enjoy feeling appreciated and valued, and receiving discounts at the point of sale can contribute to a positive perception of the brand. This is where you will see the highest redemption rates. The shorter the timeframe from coupon receipt to the consumer being instore and infront of the product, the higher the redemption rate will be. Think carefully when planning an instore coupon activation – do you have the budget to cover all redemptions for coupons that will be handed out? Are you rewarding the right people? Is the coupon offer rich enough, hitting the sweet spot of getting results without breaking the budget.

Word-of-Mouth Marketing: Coupons can stimulate word-of-mouth marketing as satisfied customers may share their positive experiences with friends and family, potentially bringing in new customers to the store. By engaging with a consumer through a coupon mechanic, the chances of your brand message and experience being passed on via word of mouth increases. Consider what message you want to deliver with your coupon to ensure you are maximising positive word of mouth opportunity,

Spike in Sales: Coupons can also be strategically used to encourage sales of specific products at traditionally lower sales periods, or clear out excess inventory. Coupons will naturally drive traffic and sales of your products. By offering discounts on specific items, brands can stimulate demand and ensure that their inventory turnover remains healthy, or increases in comparison to their competitors.

Competitive Advantage: In a competitive market, offering coupons can differentiate a brand from its competitors and attract price-conscious consumers. It allows brands to stay relevant and top-of-mind amidst a sea of choices.

Overall, coupons are a versatile sales promotion technique for brands to drive sales, foster loyalty, gather data, and enhance the overall shopping experience, making them a popular choice for in-store rewards.

We can help deliver the entire operation from fulfilment to risk management. Helping you to create the most cost-effective, engaging and efficient coupon promotion possible.

Get in touch to find out how we can help your coupon campaign.

Coupons are here to stay!

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Promotional Guidance

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