This article will show you how to devise and implement an effective coupon code marketing strategy. Learn about four types of coupons designed specifically for special offers, as well as psychological factors that determine their efficacy.
Coca-Cola issued its inaugural coupon in 1887. From 1894-1913, one in nine Americans received free Coca-Cola beverages – for an estimated total of 850,000 free beverages!
Coca-Cola became available for public consumption in 1905.
Below are some fascinating stats regarding couponing (top choices).
2020 was the first year in which 145.3 million US adults used digital coupons; up from 126.7 million customers in 2016. * In 2021, the redemption rate in the US averaged 0.77 percent according to Statista.
In 2019, $467 billion worth of coupon codes were distributed. Out of this total amount, only $3.6 billion were redeemable, which represents savings equal to that amount.
2015 proved the year with the highest coupon usage; 2.84 billion coupons were used out of 319 billion issued, as reported by the Inmar Intelligence Commerce Network operator.
Since 2000, Promo code distribution has decreased by 15 percent to 200.13 billion dollars – this year it fell further with another 12 percent drop since 2018. 2019’s statistics reveal an additional decline of 12 percent when compared with 2018 numbers.
US coupon code industry growth
- US coupon industry growth has remained modest since 2017 at 4.4% (Statista).
Digital coupon code redemption outpaced that of paper coupons by an overwhelming margin in Q2 of 2020; US experts predict their use will expand exponentially to 145.3 million users within one year.
Digital coupon redemptions are expected to surpass $90 billion by 2023, and Savingarena works closely with supermarket chains to supplement or enhance their coupon plans with our comprehensive offer personalization platform.
GROCER X has recently achieved great success analyzing one of its customers: the upselling rate was 9.98 percent; cross-selling campaigns saw redemption rates of 19,588% and 4288% of customers used coupons during random trips to the store.
What types of coupon codes exist?
Coupon codes provide retailers with the chance to offer discounts and specials, which could range from discounts on merchandise purchases, special sales events, or promotional discounts for certain services or goods.
- Percentage-based discounts are the most frequently seen coupon type.
*Free shipping (often offered with minimum order size requirement to boost AOV).
*Gifts often require customers to purchase at least one similar or higher priced product or offer that makes people feel guilty and waste their money if they fail to take advantage immediately may make people feel like their money has been wasted even if it wasn’t utilized immediately.
What Generation Uses Coupon codes
Coupon usage is common across generations 90% of respondents surveyed utilize coupon codes to save money on items such as food items, OTC medications, household products, beauty and health products.
*Millennials are joining in the couponing frenzy! A study released by NCH Marketing Services shows that once millennials become parents, their values-seeking behavior becomes similar to that of Gen Xers and baby boomers. 89% of parents with children utilize coupons when planning a shopping spree as opposed to 78% without children.
- Millennials with children are more likely to use a smartphone to manage their shopping lists (48 percent), access coupon codes/deals (53%), and download loyalty programs from retailers (52%).
- Seniors are taking to online coupons in a big way: the use of them nearly tripled among those over 50 (18% in 2014, up from just 7% in 2010).
Men are significantly more likely to use coupon codes (53 percent vs. 47% for women), although 47 percent of women used coupons last year (compared with 11 percent back in 2010). Female coupon code use has seen significant increases over recent years (up 25 percent since 2014 vs. 11 percent back then).
How Do Shoppers Prefer Receiving Their Coupons (by Channel)
*45 percent of respondents indicated their preference for receiving grocery and food discounts via email, with 11 percent preferring social media for receiving them.
A majority (93%) of coupon code buyers plan to utilize any coupon codes or discounts sent through email, while 40% will share offers received with family and friends members.
- 28% of people are sharing offers from retailers via social media. 47% of consumers primarily utilize coupon code apps whereas 44% prefer points and cash-back apps as their main source for coupons; these trends represent one of the key developments within the coupon code industry for coupon issuers looking to attract new customers and expand their business.
What can coupons do to make shopping easier?
- Over 70% of people enjoy getting coupons!
People who use coupons typically spend 24% more than regular shoppers. In addition, 66% of respondents say that in the event of receiving a coupon code, they would purchase something regardless of their initial plans.
1.7% of people tweet or share offers that save customers 25% or more off brands, and nearly 70% of young people actively search for bargains before making purchases.
Bear this in mind: mental triggers don’t function independently of each other but rather synergistically to maximize impact.
Anticipation on Black Friday Shoppers prepare for this day by saving money and making lists of items they would like to buy on that date.
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