Clip Mistaken Notions About Coupon Users

In the past, a fistful of consumer behavior findings suggested a stigma associated with use of discount coupons. Researchers at University of Colorado-Boulder, University of Virginia, Duke University, and University of Bologna described associations between coupon use and being a tightwad. Researchers at University of Alberta and University of Manitoba found that when people in a store saw someone using a coupon, judgments of the coupon users, and even of those standing in line with the coupon users, were tugged in a negative direction.
     What a change! Today’s shoppers pride themselves at digging out specials. With the social media daily deal programs, the shoppers are encouraged to trumpet the news to all their friends and encourage everybody to join in.
     The mistaken notions about coupon users now have to do with the wealthy. Clip any mistakes, retailer. An Ipsos Mendelsohn consumer panel study has been tracking coupon use among households with at least $100,000 in annual income:

• About 70% use a paper coupon at least once each month. More than 45% use one weekly
• For online coupons, more than half use one monthly and almost one-quarter use one weekly
• About 60% have purchased a daily deal offer

     Don’t exclude these affluent consumers from your coupon-based promotions. Coupons are a draw. The Ipsos Mendelshohn study found little drop-off in interest even among consumers with more than $250,000 in household income or with at least one million dollars in assets.
     Here are a few shopper psychology tips to get the most from your coupon programs:

• Distribute coupons as early in the shopping process as possible. Researchers at MIT found that coupons presented at the store entrance drive up sales much more than do coupons available in the aisles of stores. RedPlum.com distributes coupons online before the customer even leaves home for the store. Many retailers end a customer’s purchase by giving a coupon for a discount on a future visit to the store.
• Use conditions on coupons to influence the size of the entire store purchase. Those MIT researchers also found that when coupon redemption required the customer to spend more on an item than they’d planned to, the customer tends to increase the total shopping trip amount.
• Help people stay proud to use their coupons. One way to add status is to hook a noble cause to coupon use. RedPlum brags about their sponsorship of a missing children location program.

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Give Coupons Early and Proudly