Your Brand Is Missing Out If You Aren't Embracing Coupon Advertising
Many brands think they will lose money by offering discounts, but it can actually increase their sales, grow customer loyalty, and even change buyer behavior. Coupon advertising is one way of the best ways to bring in customers while having a trackable ROI.
Here are a few reasons why you should make coupon advertising part of your business and turn it into a valuable part of your marketing strategy.
Customers With Coupons Are More Likely to Convert
Customers who enter your store with coupons are more likely to convert than your typical in-store or online visitor. Think about customers who visit stores whenever there is a major sale. The customers had to go out of their way to get to the store for a sale, which means they are hoping to find something they like.
Even if they’re not in love with the products or services you offer, customers are likely to buy something (anything) to use the coupon.
This is why marketers often use coupon advertising to introduce new customers to the brand or encourage old customers to return. They might send out coupons to potential leads or promote exclusive discounts on social media in hopes of bringing in new people to at least try their products.
This is also why people invest in marketing on deal sites like Groupon. Brands hope that if customers try their business once using a discount, they will be more likely to return and pay full price.
Coupons Make Customers Spend More
Coupon advertising is a great way to convince customers to spend more than they otherwise would have or to try more expensive brands.
Multiple studies have found that coupon users actually spend more than those who don’t, but feel like they’re walking away receiving a better deal.
In one study, customers were presented with six different types of hand soap. Half of the customers received a discount coupon, and the other half didn’t. When researchers analyzed the receipts, they found that customers who did not have coupons spent $2.07, while customers who used coupons spent $2.28.
It’s possible that customers feel like they received a better deal on more expensive soap with the discount, but other social scientists theorize that coupon users already think they’re getting great deals, so they’re actually not as frugal as non-coupon users.
If you’re looking to encourage customers to splurge on your brand, coupon advertising is a great way to bring people in.
Coupons Make Customers More Likely to Buy Additional Items
Offering coupons for specific products can actually lead customers to buy products unrelated to the deal and encourage them to spend more during the shopping experience. One article from Forbes explained that the more time someone spends in a store, the more likely they are likely to spend.
If offering a coupon keeps people at your store or business, they are more likely to add other items and additional impulse buys to their baskets.
Additionally, coupons oftentimes make customers spend on items they don’t need. Because they have a coupon, they think the item is a steal and worth what they are paying for it. When customers spend on items they don’t need once, they are likely to repeat the behavior throughout the store, and add more unnecessary items.
You might offer coupons for specific discounts or services related to your brand, but find that customers spend much more on a variety of items when they visit your business.
Discounts Convince Customers to Try New Things
Your customers operate on a spectrum of risks versus reward. When they evaluate your product, they consider whether the rewards (or the benefits of your products) outweigh the risks (losing money paying for it).
The more your items cost, or the harder they are to access, then the higher the perceived risk as customers start anticipating the disappointment that comes with all of that effort.
Discounts significantly lower the risks associated with your brand. Customers feel like they are spending less, which means the potential losses associated with your brand are lowered. This means the scales are more likely to swing in your favor. Instead of deciding that your products or services aren’t worth it, they might decide that trying the items are worth the risk, turning them from audiences to customers.
This is another reason why companies use coupon advertising for lead generation and to grow their customer list. If they can convert new customers, then the next step is to turn them into repeat buyers who enjoy buying from that business.
Coupon Advertising Increases Loyalty
Customers feel good when they make a purchase and think they got a good deal. The brain releases dopamine, one of the brain’s happy chemicals, and people are left with a positive association with your brand. Other ways you can trigger dopamine in customers is through positive client interactions and great customer service.
Whether the people using your coupons are new customers or repeat buyers, the dopamine will create a positive association with your brand in their minds.
The next time they need products or services related to your brand, they are likely to think warmly about you.
This is how coupon advertising generates customer loyalty. While customers might be lukewarm about your brand at first glance, they will develop joy and loyalty when they feel like you offer great deals and services at affordable prices.
Tap Into Coupon Advertising With My Area Network
If you want to test coupon advertising for your business to make sure that you actually generate a positive ROI and see the benefits to your brand, contact MyArea Network. We will set up a consultation with one of our marketing experts to learn about your business and come up with promotional ideas that work for you.
We always tailor our meetings to our clients, and never offer cookie-cutter solutions. Let us work with you to discover the best options for your business.