If stores want to hear from consumers, they should probably consider digital coupon marketing. Most consumers believe that digital coupons can create brand awareness. The same proportion of respondents believe that they generate loyalty. In 1887, Coca-Cola distributed the first coupon in history.
The company didn't realize how important the concept would be in shaping the future of commerce. According to Coupon Sherpa, “Between 1894 and 1913, it is estimated that one in nine Americans had received a free Coca-Cola, totaling 8,500,000 free drinks. By 1895, Coca-Cola was being served in every state. Some shoppers consider a first-time discount to be a prerequisite for brands looking to acquire new customers.
This is because 62% of consumers spend two or more hours a week looking for promotions on the web. Fortunately, retailers can rest assured that any coupon issued can continue to attract loyal, lifelong customers. In fact, 91% of shoppers who redeem coupons say they would visit the same retailers again. As emotional creatures, people are more inclined to accept free offers than discounted ones.
Whether they're right or not, shoppers believe they get a better deal when they stick with something free instead of spending less on their overall purchase. Consumers are overwhelmingly confident that any discount offered by a company is a legitimate reduction from the original price. In other words, you could technically increase the price of an item by 20%, then turn around and offer a 20% discount, but consumers rarely consider this possibility. This trust in your business and the discounts you offer creates a sense of excitement towards your offer.
However, be careful not to exploit this sense of trust by offering suspicious offers to increase your profits. These types of coupons are accessible to consumers from a number of different locations. Customers download coupons from a company's website, directly from an email, or through social media. Most of the time, these coupons can also be accessed from mobile devices.
While there is no real substitute for offering quality products and fair prices, coupons do a great job supporting those efforts when competition heats up or consumer expectations dictate it. Studies show that offering a coupon or discount can deter consumers from looking for the same product elsewhere. Digital coupons are often intended to entice a consumer to make a purchase on the retailer's website by offering a certain percentage discount, free shipping, or other discount. A disadvantage of coupons and discounts is that they empower consumers to wait for them when making a purchase from you.
Findings like these confirm why coupons are so popular, no matter who the consumer is, wealthy shoppers are more likely to use coupons. The psychology of coupons emphasizes the inherent value that consumers can achieve, even if that value is not significantly valuable. This is what research shows on how consumers react to coupons and how strategic branded discounts and gifts can contribute to a company's success. A survey found that 80 percent of consumers were willing to change brands or businesses because of a coupon or other offer.