Home' The Channel Magazine : August 2011 Contents National Newsagent August 2011
The introduction of digital marketing
has seen the coupon move from being
a paper coupon cut out of a magazine
or newspaper to a digital downloadable
Getting customers to buy your product has become a real
challenge. Many marketing and advertising campaigns are not
working and many retailers are wondering what they should do to
There is one tool that at present is the hot marketing
Provide coupons for your customers and, at present, you will
grab the attention of a lot of potential customers.
Coupons are not a new idea, they have been around and been
used by many generations of shoppers, it is that they have taken
on a new lease of life at present.
Many of your customers are looking at their cost of living and
the family budget and wondering where they can save money. The
result is that they are being bombarded with discount offers in
almost every shopping window.
The shrewd retailers are targeting consumers and using
coupons as a means of getting the customer in to their business.
American consumers are particularly attracted to coupons
and over the years that I have been going to America I have
observed coupon offers in newspapers and in stores. According
to AC Nielsen, the research company, these coupons peaked in
2000 when the value of coupon offers reached 4.4 billion dollars.
This has declined, but in 2010 it was still a 3.3 billion dollar
According to Advertising Age, the advertising bible, 87% of
American shoppers use coupons. Research carried out by AC
Nielson indicated that 95% of customers like coupons and 60%
actually look for them.
One reason some retailers dislike coupons is because of
'Extreme Couponing', the consumer abuses the coupon situation.
It is estimated 13% of American shoppers fall into this bracket.
They are heavy coupon users and abuse the situation. Some are
buying the specials and then reselling them at markets or to
their friends at a profit.
Having said that, 70% of coupon users are looked on as
enthusiasts, many redeeming coupons 188 times a year.
The old fashioned paper coupon is still popular with many
shoppers and should not be neglected as a promotional tool. In
the new 'Bricks and Clicks' retail world we live in, the coupon
has taken on a new life.
Value Marketing Coupons... e-Marketing
The fastest growing marketing technique at present is Value
This is where a retailer provides a coupon on a dedicated
website. 34% of women who are exposed to e-coupons are
frequent users of them, whilst 51% of 18-24 year-olds will use
them if they are presented with them.
The value of coupon marketing is that they can:
Expand your geographical market
Entice new consumers to come to your business
Attract existing customers to come more often
Increase your profits by allowing you to sell add-ons at a greater
profit than the offer.
The introduction of digital marketing has seen the coupon
move from being a paper coupon that was cut out of a magazine
or newspaper or collected in store to a digital downloadable
Most digital coupons are time or volume related and this can
be down to hours or a few hundred units, this encourages the
potential consumer to make a quick decision.
The role of the retailer is to ensure that they have plenty of
the product on offer in stock, plus use the opportunity to get the
consumer to purchase other full priced products or to return to
the store again.
Coupons are usually discount coupons, but BOGOF (Buy One
and Get One Free) coupons are also promoted on such schemes.
The Value Marketing Coupons via a dedicated provider is
either promoted via international sites, Groupon being the most
commonly recognised or via local websites. In our city of Perth
we have numerous sites including Cudo, www.cudo.com.au and
Integration is the Key
How can you make coupons work for your business? Imagine
you have a coupon on line. It promotes a select number of
products that are only available on a coupon offer during a quiet
time in your business. You promote the coupons on line and
tell the consumer they have to rush into your store before you
sell out. The offer is promoted in-store as well as online with
a ticking clock and number of units left. Create some theatre
around a coupon offer and let the team and the consumers join
in the fun.
Coupons are a hot marketing tool!
ARE YOU A COUPON
KING OR QUEEN?
By John Stanley
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