Some brands sneer at the idea of offering coupons since they seem to only benefit the customer, but the truth is that coupons help out businesses just as much. Coupons have been shown to increase sales lift, bring in new sales leads then convert them reliably while also contributing overall to brand loyalty.
New forms of digital coupons have even more exciting benefits to offer. Contextual deals delivered at the right time and place via beacon platforms have been shown to have more reliable conversion rates and an increase in ROI, especially since they can be personalized to the shopper’s profile.
Don’t just take our word for it, though. Here are some compelling statistics that demonstrate the power of coupons in all their frugal glory:
From Clipping Coupons to Copy and Paste
Digital coupons have found tremendous success in the business world. Brands have seen that problems like customer churn, abandoned carts and low conversion rates can all be fought against with a well-placed or well-timed coupon.
Consumer research firm Compete discovered the power of coupons in a series of surveys a few years back. They confirmed that 91 percent of customers who redeemed a coupon with a retailer intended to revisit that brand again. Coupons also contributed to a significant sales lift, increasing shopping cart sizes from an average of $122 for non-coupon-clippers to an average of $216.
These same shoppers also reported a higher overall sense of satisfaction from their experience. Even more interesting, 57 percent of their surveyed shoppers admitted that without a coupon they would have never made a purchase in the first place.
As you can see, coupons impel consumer action in ways that few other techniques can. They also help create feelings of affinity that last throughout the customer’s shopping experience and then encourage them to shop again at a later date.
The Power of Beacons
Since Compete’s survey, a new player has arrived on the coupon scene: beacon offers. These coupons are contextual, dynamic and can be personalized to the shopper’s prior behavior or preferences. Using beacon platforms and proximity marketing, brands can create a more exciting and engaging in-store shopping experience while also driving sales of promotional or high ROI items.
Mobile intelligence firm NinthDecimal (formerly JiWire) revealed last year how proximity marketing could pave the way for more appreciative and purchase-prone customers.
- 53 percent of surveyed consumers indicated that they were willing to share their location in order to receive more relevant offers, and 57 percent said they were more likely to engage with these location-enabled offers
- 62 percent of customers surveyed said that they would be likely to share localized deals with friends
- 63 percent said that coupons add more value to their shopping experience than any other form of mobile marketing
A separate study from a mobile-focused beacon marketing company found that 75 percent of customers in test markets who received beacon-triggered offers said they would be more likely to make a purchase. 61 percent claimed that they would be more likely to visit the store in the future.
Harness the potential of beacon platforms and proximity marketing so that your own brand can reap all of these benefits. Visit Digital Social Retail’s beacon ad server product page to discover more about how beacons can connect you with your customers in powerful ways.
