When Coca-Cola distributed its first-ever coupon in 1887, little did anyone realize that this was the beginning of a huge market of coupons, discounts, and promotions. Today, every big and small retailer uses digital or paper vouchers to promote their brand, reach out to new and old customers, and encourage long-term sales. In this article, UK voucher site Wikigains shows us 3 ways the market reacts to digital vouchers and how retailers can benefit from them.
#1. Coupons Are A Source Of Happiness
A report published by Wikigains reveals that coupon recipients were happier than those who did not receive any. Another study showed that coupon recipients had a significant rise in oxytocin levels, heart rates lowered by five percent and the respiration rate also dropped by 30 percent. So clearly, people who had access to coupons were more relaxed and happy.
While most retailers offer some sort of discounts, shoppers get excited when they unexpectedly find a coupon from a company that rarely offers any discounts. Similarly, an exclusive offer in the inbox from the favorite brand can make a shopper’s day and put him on a shopping spree. The offer can be money off the price of the product or free shipping.
#2. Discounts Result In Reduced Cart Abandonment
When buying a product from an unfamiliar brand, a shopper usually feels uncomfortable paying the full price. However, if there is an attractive discount or a coupon that lets the shopper save money, it is more likely that the person will go ahead with the purchase. Numerous studies have shown that online shoppers are more likely to abandon carts if they can’t find a suitable coupon to redeem at the checkout.
Most shoppers buying from a new brand feel that there must be a new-customer or welcome coupon. Other than the first-time buyer coupon, retailers can also use other promo codes to attract new shoppers and reward the loyal customers. Most customers agreed that they are more likely to return to a brand that offers coupons and discounts.
#3.Promotions Encourage Shoppers To Purchase
A global survey showed that 51 percent of the respondents were likely to be influenced by coupons and discounts to make a purchase. Retailers on the other hand use promotional codes as a tool to encourage shoppers to add higher-margin and out-of-season products to the cart. Discounts can also be used to push related or complementary products. For example, buy a hair shampoo and get 50% off hair conditioner.
Retailers can use vouchers as a way to soft sell a plethora of products to the shoppers and encourage them to spend a specified minimum amount to redeem the offer. Thus, both shoppers and retailers benefit with the use of coupons.
Wikigains believes that every retailer should offer some sort of digital promo code on their website not only to sustain in the market but also build a relationship with customers. However, retailers must avoid the bargain hunters and issue only a limited number of coupons to preserve their brand’s integrity.
