First, a little history lesson. Back in 1887, Coca-Cola founder Asa Candler claims to have invented coupons via a novel sampling activity offering paper tickets ‘entitling the bearer’ to a free glass of Coca-Cola. The promotion went on to receive an estimated 8.5 million redemptions in under 30 years, securing the role of coupons in marketing strategy ever since and they are still going strong. For over 50 years Savi has been behind the distribution and processing of millions of coupons for brands and retailers, leading the industry into the digital age and beyond with our unique expertise and understanding. Read on for why we believe coupons are here to stay.
Why use coupons?
Along with many other studies, our research demonstrates that today’s shoppers still regard coupons highly, but why do we believe they can be the right strategy to help brands and retailers achieve their objectives?
1. They are measurable
Coupons are a great way to test and measure the effectiveness of different channel campaigns. Campaign reporting allows deep insight into redemption levels across various channels, retailers, locations, etc. enabling a clearer marketing focus.
2. They generate loyalty
Unsurprisingly, almost half of the people we surveyed said that they would sign-up for a loyalty programme in exchange for a coupon. A quarter also said that their loyalty toward a retailer would be increased by the offer of a coupon, and one in five said that this would increase their loyalty to brands too. So, just giving away a coupon is a solution where everyone benefits; the consumer, the retailer, and the brand.
3. There is no stigma
Our research revealed that coupons appeal to all types of shoppers and found that 70% of those in the £60-70k income bracket were likely to seek out coupons compared with 48% of those with a £5-10k income. Interestingly only 12% of shoppers said they are embarrassed about using coupons and this seems to correlate with the cost-of-living crisis reducing any stigma around money-saving activities.
4. There is a need for them right now
As mentioned 32% of shoppers revealed that coupons are essential to their current budget. We also learnt that more than half of those surveyed had only started actively seeking coupons within the past month. Interestingly the 18-24-year-old age group was most likely to have begun seeking coupons in the past week (40%) highlighting that coupons are becoming increasingly popular with younger consumers.
Although coupon campaigns are fairly straightforward it is vital to plan your coupon strategy carefully to ensure you achieve maximum value from every campaign. The first step is to determine what your objective is – there is a coupon solution for any purpose from increasing sales to growing a database to new product launches.
