How retailers can benefit from consumers’ save-centric mentality
It seems today's shoppers are always searching for a bargain. While many choose to visit discount retailers, some consumers have associated such enterprises with low-quality items.
While this may not always be true, the perception still persists, which has caused people to leverage coupons. While some are cut out of a magazine or booklet, others are delivered through email.
Why bother with coupons?
At face value, it doesn't make sense for a merchant to offer shoppers 20 percent savings on a pair of shoes or 15 percent off a book about the Democratic Republic of the Congo. However, retail customer intelligence tools have shown that providing people with coupons improves customer retention enormously.
Businesses aren't necessarily distributing these coupons at random – they're providing discounts to people who have purchased goods from their outlets and ecommerce stores in the past. Experienced merchants are cognizant of the fact that it costs more money to aggregate new business than it does to retain old.
An omnichannel angle
Integrated Solutions for Retailers noted a study conducted by Forrester Research, which is comprised of thorough surveys with 500 consumers who used digital coupons over the past three months. The organization made the following discoveries:
- More than half (59 percent) of participants noted that digital coupons and coupon codes were likely to have a profound influence on their purchasing decisions
- The majority of respondents redeemed digital coupon codes within three days of receiving them
- One-third of consumers surveyed used coupons immediately after receipt
- More consumers are using smartphones and tablets to redeem digital coupons
- Just under three-quarters (68 percent) of participants maintained that coupons greatly influence their loyalty
Whether online or in-store, coupons are ubiquitous. Due to the fact that mobile involvement is growing more prevalent, retailers need to ensure their POS software deployments can register coupons sent from smartphones and tablets. Scanning codes at an in-store checkout kiosk should be another convenience offered to consumers.
Where is coupon use the highest?
Apparently, Pennsylvanians, particularly those living in Pittsburgh, take advantage of coupons quite a bit. Pittsburgh Business Times noted the city ranked seventh on the Forrester survey of nationwide cities' digital coupon use. It also noted leveraging such discounts increased 15 percent from last year.
Other metropolitan areas that ranked in the top 10 slots were New York City, Boston and Baltimore.
The better merchants accommodate bargain-hunters, the more loyal their customers will be.