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% 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% 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% 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% 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% 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% 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.
With the number of digital coupon users constantly growing every year, eMarketer predicts that the number will grow to 124.4 million by the end of 2016. It is undeniable that digital coupons have the potential to expand your company in terms of brand development and sales. So even if you haven’t started utilizing digital coupons, it’s never too late. As experts predict the number of users to continue growing, it’s safe to say that digital coupons won’t be leaving anytime soon.
Contributing Writer: Don Dao
Wiser provides a complete suite of solutions to give retailers, brands, and manufacturers the edge to stay both competitive and most importantly, profitable.
Want to learn more about what Wiser can do for your business? Sign up for a free 14-day trial here.