In the year 1887, the coca cola company distributed the first coupon. Little did the company realize how vital the concept would be in building the e-commerce future. With the coca cola voucher, customers could redeem a glass of coke with it in any dispensary. Coke was introduced a year later, and it benefitted most from this strategy as it encouraged vendor and consumer adoption. Nowadays every retailer and brand are using discounts and other promotions to elevate their business. Companies that understand the science between discount offers create a good brand image give happiness to the new and the returning clients and also to provide a boost for sales. Below are some studies which show how consumers react to coupons and how freebies and discount improve the success of the company.
Deals boost the overall revenue
Consumers last year redeemed 2.84 billion coupons from the total of 319 billion which were distributed. Customers who are crafty know the places where they can find good deals and coupons. Brands which issue unique brands both benefit shoppers who want to save money and retailers who are growing their sales. Big companies are using coupons as part of their marketing strategy to increase their revenue.
Promotions influence buying
A worldwide study that was conducted by retailmenot found out that out of 1,009 participants 51% of participants agreed that were swayed by discounts, sales, and deals while they are shopping online. In the united states out of 10,000 participants, 51% felt the same way. Retailers can encourage customers with coupons to:
- Add particular items to their carts
- Discover new products which will compliment product launches
You can think of promotions and discounts as a means of enticing shoppers. A lot of the time when coupons are available most of the customers will try to convince themselves not to buy the products.
The power of free things
Consumers are mostly drawn to free products than to discounted products even if the discount helps them save on money or get extra value from their purchases. Shoppers always think that they have gotten the best deal when they get to walk away with free things instead of spending less money on the overall products which are purchased.
Free products, discounts, and promotions will help you to preserve the integrity of your brand by limiting the amount of coupons which can be used by customers.
— Mardel (@Mardel_Inc) 12 de agosto de 2018