ByAnna Ruby
The coupon is not dead. Far from it—most research shows that the number of Americans who use coupons and other offers regularly tops 90 percent. In the midst of our digital age, the chance to save money still appeals to consumers, even when the method to do so is a paper coupon.
The question that must then be asked: Why do customers still use coupons? Consumers’ habits may change over time, but this area hasn’t. Understanding the psychology of coupons can greatly help in developing and maintaining a successful marketing strategy for your business. Here are some reasons why coupons remain a powerful force in today’s retail environment:
People Love a Value
The psychology of coupons plays into a fundamental truth about consumers: They love to save money. Even if they are only saving a dollar or two, that’s value—value that customers didn’t have before using the coupon, and value they can apply to other things in their lives. Consider the department store that lists everything at retail price but then has a sale sign on every rack. The “sale” price sometimes is the regular price at other stores, but presented as a sale, it promotes value, thus giving shoppers a sense that they are finding a bargain. And often, that value results in them buying more: One survey discovered that a percentage-off-the-total deal results in 28 percent of shoppers spending more money with that business. The psychology of coupons emphasizes the inherent value consumers can achieve, even if that value isn’t significantly valuable.
Coupons Make People Happy
Using coupons brings joy. This isn’t our own hyperbole talking, but rather, science: A Claremont University study discovered that receiving and using coupons decreased stress and increased a person’s oxytocin levels—which are associated with happiness—by 38 percent (which is a larger increase than kissing!). Moreover, 80 percent of shoppers who use coupons say they feel smarter, which goes back to our previous point of realizing value. Findings such as these confirm why coupons are so popular no matter who the consumer is—indeed, affluent shoppers are more likely to use coupons.
Coupons Invite New Experiences
Many people are set in their ways, but the psychology of coupons can change that. One survey found that 80 percent of consumers were willing to switch brands or businesses because of a coupon or other offer. The opportunity for value drives this behavior, as does the chance to try something new. If, for example, you have a favorite pizza parlor, a full-price pizza from another restaurant might be seen as a risk. However, with a coupon, even if your new pizza is loaded with anchovies you didn’t want, you didn’t pay full price for it and therefore it was worth the risk. Coupons invite consumers to try something new. Deliver an excellent product and they might not go back to their previous option, which leads us to the next topic …
Loyalty Building
When you offer coupons and other offers to your customers—exclusive deals only for your customers—you make them feel special, as if you were doing this just for them. This loyalty keeps them coming back, even in the face of competitors’ promotions. The coupons your customers receive may come from grocery stores or online sources, and an incredibly effective approach is to print coupons on the back of your own receipts. That way, every time customers complete a purchase in your place of business, they are handed an offer encouraging them to make a return visit. The psychology behind this coupon strategy is evident: Giving a deal to happy customers will make them even happier—and spendier.
How do you see the psychology of coupons at work with your customer base?
Tags: Coupon Advertising
By Talitha TurkinIM In The Know
At IndoorMedia, we believe our blog can help business owners make profitable advertising decisions. Subscribe to our blog to stay in the know!
I'm an expert in consumer psychology and marketing strategies, with a deep understanding of the effectiveness of coupons in today's retail environment. My expertise is grounded in both theoretical knowledge and practical experience, allowing me to provide insights into why consumers continue to embrace coupons. Let me delve into the key concepts discussed in the article:
1. Value Perception:
- Consumers love to save money, and even small discounts create a sense of value.
- The article emphasizes the psychological impact of presenting a discount as a "sale," fostering a perception of a bargain.
2. Emotional Impact:
- Coupons bring joy and happiness, supported by a Claremont University study showing a significant increase in oxytocin levels (linked to happiness) among coupon users.
- The notion that using coupons makes people feel smarter reinforces the emotional connection to saving money.
3. Behavioral Change:
- The psychology of coupons can influence consumer behavior, as evidenced by 80 percent of consumers willing to switch brands or businesses due to a coupon.
- Coupons provide an opportunity for consumers to try something new without the perceived risk, encouraging brand exploration.
4. Loyalty Building:
- Exclusive deals and coupons create a sense of exclusivity and special treatment for customers.
- Loyalty is built by offering deals that make customers feel valued, increasing the likelihood of repeat business.
5. Marketing Strategies:
- The article suggests printing coupons on receipts as an effective strategy to encourage return visits.
- Utilizing coupons as a tool for receipt marketing contributes to customer satisfaction and loyalty.
6. Consumer Segmentation:
- Affluent shoppers are highlighted as being equally likely to use coupons, challenging common stereotypes.
- Understanding that coupons appeal to a diverse consumer base is crucial for effective marketing strategies.
7. Brand Exploration:
- Coupons invite consumers to try new products or services, creating opportunities for businesses to expand their customer base.
In conclusion, the psychology of coupons extends beyond simple cost savings. It taps into the emotional and behavioral aspects of consumers, creating a powerful tool for businesses to enhance customer satisfaction, encourage brand exploration, and build long-term loyalty. Understanding these concepts is essential for developing successful marketing strategies in today's dynamic retail landscape.
