Community Discussion: When The 'Coupon Drawer' Is More Influential Than Your Best Friend ...
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Howdy To Our Super Community!
When I was a kid, I was always fascinated by ladies who spent hours combing through newspapers and mailers, clipping coupons to put in a coupon drawer for future shopping excursions. It seemed like a lot of trouble to go to in order to save a a few bucks, especially given that I grew up in an era that still boasted a pretty stable middle class, but, it turns out, those ladies of yore were really onto something.
A recent survey by Bazaarvoice and CMO Council found that coupons and discounts drive way more return/loyalty business amongst modern shoppers than any other factor, including recommendations from family and friends and paid advertising. Another survey by ROTH and Research Now discovered that 70% of millennial moms sought and downloaded mobile coupons while doing their shopping chores.
There are a couple of facets of these findings that should interest any e-commerce business or local retailer. We've learned from a variety of studies that it can cost up to 7x more to earn a new customer than to retain an existing one, making loyalty programs smart business. Meanwhile, publications like the Wall Street Journal have made it clear that, in the U.S., the middle class is no longer the majority. These two factors seem to lend themselves to an important discussion for our community here at Moz, and in the marketing world at large.
What is driving 70% of young mothers to use mobile coupons, as per the above study?
Is it tight budgets, the love of a deal, pride in outsmarting 'the system' with a little extra effort?
Is your company using coupons? Which ones have you seen convert most highly? Is there some element to them you've discovered to be a real winner?
Interestingly, price is repeatedly cited as a minor factor in customer complaints, and yet, I've personally seen discounts/sales drive business like mad in both e-commerce and retail settings. Just how powerful is the love a deal?
I would love it if you'd contribute your coupon/discount savvy to a discussion here, to help our community better latch onto this massively powerful influence. What are your thoughts and first-hand experiences?
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Pleasure.
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Hey Marcus!
What good insights ... particularly about the 'fun' of coupons. I honestly think the coupon-collecting ladies I knew when I was young were making a sort of game of it, and maybe even feeling a bit smarter than the 'average Joe' who was paying full price when he could have done better for himself with a little effort.
And, yes indeed, every coupon is a brand exposure. I would love to hear more from our community, if any of you are having success running coupons (or even if you don't run a business, but are a coupon clipper and have something to share about what motivates you).
Thanks, again, Marcus, for the interesting observations!
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Hey Miriam
I think there is a gamification element to coupons - the collecting, getting the best deal etc. Certainly, when we had our two youngest children (some 12 years ago now) within 15 months of each other cash was certainly on the tight side. My wife was also at home dealing with two babies and whilst they are absolutely lovely it is not always as mentally stimulating as it could be - could it be that the coupons provide an almost fun element to shopping and managing your budgets?
Just a thought really but if this does factor then people are really engaging with the brand every time they score a good coupon for that product and tuck it away for their next purchase. This is building loyalties and brand bias that likely lasts a lifetime and adds a real kickback for the brand over time.
Super interested to see others thoughts on this.
Marcus
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