Consumers Love Coupons, Merchants Reap Benefits
Merchants are reaping benefits from the online coupons that they are marketing, according to a recent study that was conducted by Forrester Consulting.
“The Impact of Online Coupons and Promotion Codes” study was commissioned by coupon and deal marketplace WhaleShark Media. The study establishes a direct correlation between online coupons and increased consumer spending, and reveals that online coupons and promotion codes drive new business to merchants, reinforce brand image and influence the purchase cycle.
Additionally, the study illustrates that customers who use coupon websites shop more online, and also spend more than the average online shopper. Active coupon users reportedly spend over $800 more per year with e-commerce merchants than less active coupon users, and are also 74 percent more likely to try a new brand after receiving a coupon or promotion code.
Online coupons are also reducing shopping cart abandonment, which improves conversion rates and reinforces a positive brand image. Eighty-eight percent of participants claim that promo codes “close the deal” in their purchasing decisions. Furthermore, 80 percent of respondents say that coupons and promotion codes improve a company’s brand image, with 88 percent saying that they have positive feelings toward companies that offer coupons.
And according to a separate study, merchants may want to provide location-based coupons to stay ahead of an emerging trend.
A study by Prosper Mobile Insights shows that 67 percent of consumers somewhat/strongly agreed that location-based coupons are very useful and convenient.
The study shows that most participants (51.1%) prefer their coupons via email, however more than a quarter (25.6%) would like to automatically receive coupons when they are near a store. Other ways consumers like to get their coupons include manual search (32.2%), QR codes (31.9%), text or instant message (31%) and check in through social media (10.3%).
And with only 18.1 percent of respondents claiming they didn’t want to receive coupons at all, it just goes to show merchants that coupons are big business and have the capability of bringing in big business too.
Image Credit: Coupon Audit