“Coupons were a drug,” JC Penney’s former CEO Ron Johnson discovered in 2012 after their experiment of eliminating the discounts saw a major drop in sales. Eight years ago, JC Penney decided to introduce “fair and square” pricing by doing away with markdowns altogether. Unfortunately, this resulted in big losses for the company by the end of the year, and while the intent was noble, the attempt was an utter failure.
As it turns out, one of the key factors that truly drive consumers to purchase is their perceived savings by making the transaction. In a survey, Statista found that 64 percent of people would opt to wait for a markdown before pursuing a product. Fifty-nine percent would also make time to search the web for coupons before finalizing their purchase.
Coupons give shoppers that fear of missing out because there’s usually a time frame they have to consider. They cannot afford to wait for the offer to disappear. Our bodies also have a physiological response to discounts as discovered in a study led by Dr. Paul Zak, professor at Claremont Graduate University. One set of shoppers received coupons while the other did not. The ones who got the vouchers experienced a 38 percent increase in their oxytocin levels, making them 11 percent happier than those who did not get any.
Since we are now aware of how much couponing can mean to our customers, we also stand to miss out if couponing strategies are not utilized for selling purposes. Here are a few ways you can unleash the magic of this nifty marketing tool.
First-time customer voucher
Offering a discount for their first-ever purchase is a great way to attract more customers. Especially nowadays when people shop online for most of their needs and they can be identified with their unique email addresses, new customer discounts are a good come-on to convert casual window shoppers.
The holidays are usually the time when people feel a little looser with their money. This is more so true when people celebrate their birthdays because they tend to splurge on things that they normally wouldn’t buy. Tying the coupon to a customer’s birthday also gives it that personal touch that can remind them of the urgency with which they must use it, before the offer expires!
Buy 1 Take 1 coupons
Frequently the best way to move more products is by convincing consumers to take more than they usually find necessary. By offering two for the price of one, you also give shoppers that gleeful sense of a great bargain that they definitely would not want to skip.
Couponing is a powerful tool that has proven essential to a lot of businesses, and not just for JC Penney.
People see buying some essentials like one of those adult things they could do without, so finding a Nest Bedding coupon for example for that mattress they do need is akin to saving some dollars for rent and similar bills. For other products that are not as necessary, discounting can mean convincing customers to choose you over your competition. However you choose to apply it, vouchers will definitely give your clients that added excitement and that’s even before they even pay any money for it.