Engage Customers Via Digital Coupons

Whenever you’ve required a customer to work to obtain a discount, you increase the customer’s appreciation for the discount. The right level of work depends on the amount of discount you’re offering, the scarcity of the advertised item, the customer’s enjoyment of games, and more. Digital discount coupons—downloadable to an online device—for use in your store call for an effort which is both easy and noticeable. The consumer needs to either print out the coupon or bring a mobile device to the store to show the screen.
     An analysis sponsored by the Shopper Technology Institute and conducted by Partners in Loyalty Marketing estimates that although digital coupons constitute much less than 1% of all coupons distributed, they constitute more than 5% of coupons redeemed. About 34% of coupons delivered via free-standing insert (FSI) attract new purchasers, while about 46% of digital coupons accomplish this. About 68% of FSI coupons result in a larger sale total, while this occurs with about 77% of digital coupons.
     According to Inmar, Inc., about 88% of coupons are distributed via FSI. As with a digital coupon, using an FSI coupon requires an easy, yet noticeable effort. The consumer needs to extract the coupon from the insert and take it to the store. Not as much of an effort, however, and that might account for the difference in results for a retailer.
     Another possible factor has to do with the stigma associated in the past with coupon use. Any concern about appearing cheap at the checkout could be eased by having a mobile device to show off to all onlookers.
     But perhaps the biggest advantage of digital coupons over FSI coupons is the power of personalization to persuade the coupon recipient to do the extra work. By keeping track of what the customer has purchased and what the shopper has considered, you offer that individual items carrying 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.
     Customers notice and remember a discount when the items on the coupon are of high interest to them. In turn, discounts which are remembered increase the customer’s impression that all prices at your store offer distinctively good value.

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