For some consumers, receiving a plastic coupon may feel like winning the lottery. Maybe that’s a bit of an overstatement, but the truth is, consumers are constantly looking for ways to save money. It may not be the most tech-savvy tool a company can use to attract new customers, but it still holds value and is an effective strategy for driving new customers to your store.
Coupons are effective
A 2015 study revealed that a staggering 70% of Americans use coupons. In addition, these consumers saved $3 billion US dollars by using coupons in 2014. This in and of itself is a testament to the success of this type of marketing strategy.
Coupons drive new customers to your store
In a 2007 thesis it was reported that coupons do in fact have a positive effect on consumers in that consumers were more likely to frequent an establishment that offered coupons. While the study focused on restaurant patrons, among others, it is clear that coupons are very effective at driving consumers to a store and motivating those consumers to make a purchase.
Coupons can drive sales of other products
Coupons may be effective at driving customers to a store, but that is not where it ends. Consumers are more likely to make impulse purchases when they visit a specific store. This means that unrelated products in the store are likely to land in the basket of the consumer.
Coupons are a very cost-effective marketing tool that works. Consumers are constantly looking to save money and offering discount cards is a great way to encourage consumers to make a purchase. Keep in mind, though, that coupons aim to drive traffic through discount offers. This means that the store will receive a reduced profit on the item. Careful consideration should be given when applying this technique so as to ensure profitability in the long run.