When Coca-Cola first introduced the idea of a coupon in 1887, no one had any idea how dramatically the concept would change global business. The idea paid off because the company improved the uptake of their product by consumers and vendors. According to Alex Papaconstantinou from an established UK coupon site https://www.wikigains.com/, most brands today use discounts and other promotions; and lots of studies show that they have every reason to do so.
Interesting Things Studies Have Discovered About Coupons
1. People Buy Because of Coupons
In an extensive study, it was discovered that most shoppers were persuaded to buy by discount offers and other deals. Therefore, if you feel like your customers could use a little persuasion to make a purchase, coupons are worth a shot. The coupons motivate customers make purchase in a variety of ways. For one, they make it easier for customers to buy things that are out of season, have higher margins, or are in surplus. Coupons also encourage customers to consider buying unfamiliar and new products and meet certain spending limits when placing their orders.
2. Coupons Give Customers the Joy of Free Things
To many customers, a product is worth the most when it comes at no price. For one thing, that is the best price any client would hope for. Secondly, something seems more beneficial when it did not cost as much as it is worth, such as when it was given as a free gift. And such offers are rare, so, customers don’t forget them easily. More importantly, customers who receive these free offers are likely to make bigger orders and spend more on such businesses. For this reason, Wikigains believes that giving the client a free gift after making a purchase is a great way to increase sales and boost loyalty.
3. Offering Coupons is Good for Sales
Buyers are now very good at finding good coupon offers and using them to make savings when making their purchases. Hundreds of billions of coupons are distributed every year; and in return, brands are able to boost their sales considerably. Businesses fully understand that there are customers who will pay the full price for their products, and couldn’t care less about coupon discounts. However, there is a group of customers who are waiting for the chance to get a special discount in order to make a purchase. Both classes of customers increase their sales and profits.
4. Coupons Promote The Customer’s Wellbeing
Coupons make people happy, says Wikigains, and science has confirmed it. In fact, a coupon can boost a customer’s oxytocin (the “feel good hormone”) levels by 38%, and this made them about 11% happier than those who never received a coupon deal. These benefits were still evident among customers who went out of their way to get the coupon deals. Generally, coupons were shown to improve relaxation, calm the mind, and even lower the heart and reduce how much sweating the shoppers experienced. So, in a way, offering your customers coupon offers as gifts is not just good for your business, it also gives their wellbeing a shot in the arm.
Again according to wikigains.com, a good promotion, discount or free product should improve new product trials, encourage repeat business, and increase the average order amount. When done right, the promotions should also help you improve the integrity of your brand and keep off ruthless bargain hunters who have no intention of remaining loyal to your brand.