In retail, price is a major factor in a customer’s path to purchase. To cater to this influence, many retailers use coupons to win customers over. One method retailers can use to win them over is with coupons. According to KissMetrics, 86 percent of consumers say that coupons affect their decision (to varying degrees) in choosing one brand over another. Who doesn’t love saving money? While offering coupons might be a no-brainer, we are going to show you how coupons have evolved to become an essential aspect of online retail.
Digital coupons have become the leading method of promoting products. In fact, MarketWatch found that 59 percent of consumers believe that out of all the different types of promotions, digital coupons have the most effective influence on purchases. In this digital age, retail promotions can reach your customers and prospects more quickly. For example, social media is a go-to tool to promote discounts and coupons. According to a study from comScore, 60 percent of Facebook users “like” a brand to receive an incentive, like a discount.
One advantage that you’ll need to stand out in the hyper-competitive online retail industry is strong branding. Digital coupons can help you build your brand and customer loyalty because customers are more likely to return when they remember and trust you. MarketWatch found that 68 percent of consumers strongly believe that digital coupons have a positive impact on a retailer’s brand and incentivizes them to return. By offering coupons, you create a sense of exclusivity to your returning customers expressing value to your business.
Increase in Sales
Digital coupons can help you increase sales as well. With a coupon, 77 percent of customers will spend between $10 to $50 more than anticipated. The best way to ensure this is through personalized marketing. By sending out personalized marketing materials such as emails, you are able to create a better customer experience. Deloitte found that 39 percent of customers who receive a personalized coupon, recommendation, or promotion end up spending more. To provide more targeted coupons, leverage product data to analyze past purchases and searches.
Contributing Writer: Don Dao