Personalize Discount Coupons

Database management techniques these days allow retailers to personalize discount coupons. By keeping track of what the customer has bought—and perhaps even what the shopper has considered, but not bought—you develop a profile and then offer that individual what the profile suggests would carry special appeal.
     Researchers at University of Virginia find that the draw of such customized discounts occurs even if the person doesn’t use the coupons. In fact, mere exposure to a personalized coupon campaign had a bigger impact on store sales figures than did the frequency of coupon redemption. The effect was greater when the customer hadn’t expected the discount.
     How can this be explained?

• A surprise discount generates appreciation in the consumer. And consumers who are grateful spend greater amounts of money with you over time.
• Customers are more likely to notice and to remember a discount when the items you’ve discounted on the coupon are of higher interest to them. In turn, discounts which are noticed increase the customer’s impression that all prices at your store offer good value. An important exception to this phenomenon, however, is if you regularly offer very large discounts—let’s say more than 50%. In this case, the frequent large discounts can lead the consumer to conclude that all your regular prices are inflated. They will then buy from you only if you give them a coupon for the items.
• Most important of all, people like to be recognized as individuals. Personalized discounts communicate caring.

     People love the opportunity to put their personal imprint on all aspects of their purchases. Researchers at Colorado State University found that consumers choose to personalize even if it means accepting design quality inferior to what professional designers would produce. Another study concluded shoppers in a marketing atmosphere filled with fears of privacy being violated still will volunteer ample amounts of information about themselves to a retailer if they see the retailer using this to personalize the shopping experience for them.
     It's easier for you to offer personalization when you accept special orders. Offering accessories as add-on purchases is another approach. And in fact, just having sales staff call customers by name is a bit of personalizing the shopping experience.
     Personalize discount coupons. Then, in analyzing the effectiveness of a coupon campaign, look at the changes in total store sales figures, not just sales of the particular items covered by the coupon.

Click below for more:
Personalize the Shopping Experience
Go for Customer Gratitude and Guilt
Customize Your Discount Coupons