Consumers are always looking to get a discount on their purchases. Marketers can increase their sales activity by offering coupons but are they eroding their profits by doing so? Tada’s Coupons Matter Report shows that discounting often reaches an incremental pool of buyers and therefore drives overall sales.
Tada looked at the online shopping behavior of 8,800 consumers. Of those who used coupons, just over half, 54%, noted that they wouldn’t have made the purchase unless they had obtained that discount. Slightly more, 55%, say the coupons inspired the purchase.
Retailers often worry that heavy coupon use will drive full-price shoppers to begin seeking deals. However, in this study, 76% of shoppers didn’t bother to look for a coupon before they made their purchases. And, 2/3 of these folks claim that a deal would have prompted them to spend more.
When consumers are looking for online coupons, they turn to the following sources:
- Email from stores/brands 46.77%
- Traditional flyers/coupons 24.2%
- Online searches 24%
- Coupon sites 16%
- Social sites 9%
In some industries, consumers have been trained to wait for discounts. This is especially true for apparel & accessories where 33% of shoppers want a coupon before they buy. About 22% of electronics shoppers say the same thing. On the other hand, consumers tend not to care so much about gift/flower (7%) and musical instrument (6%) coupons.
A solid coupon strategy can help marketers drive sales, especially if the discounts are released in the proper channels and target shoppers of specific types of products. When do you use coupons in your promotions?