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How to Use Coupon to Influence Consumer Behavior

Everyone loves a chance to get a percentage off on their purchase. Companies rely on premium pricing to convert their audience in this age of consumer branding. Why people love a good discount is not even the question. The question is, the effort consumers are willing to put to avail these discounts. 

How to Use Coupon to Influence Consumer Behavior

Consumers are very careful when it comes to product pricing. They want to get the cheapest option without having to compromise on quality. Many of them don’t even consider pricey products as an option. Marketers today have to overcome complicated challenges.

  • Getting customer’s attention in a competitive environment
  • Winning consumer loyalty to establish long term relations

Among the tools marketers can deploy to overcome these hurdles, coupons are extremely effective. 

Leveraging Discounts to Influence Consumer Behavior 

Coupons and discounts are much more than the incentives companies offer their customers to save money. They have an immense impact on the way consumers interact with their product and the company as a whole. Strategic coupon marketing has the potential to boost your marketing efforts. To succeed in the era of consumerism, brands need to understand the way product pricing affects consumer behavior and their actions. 
Let’s discuss these behaviors in detail:

How to Use Coupon to Influence Consumer Behavior

1. Creating a Sense of Happiness: 


There is nothing that makes people happier than a chance to save money. According to research, every time consumers find a product for less than it’s perceived worth, their level of blood oxytocin rises. 

This behavior has been found to improve the consumer’s perception of a brand. The rise in oxytocin levels gets associated with the brand that provided them with the discount. Customers begin associating a positive feeling with your business and as a result, they become loyal.

2. Makes a Brand Appear Reliable: 


Offering discount coupons makes people trust you. Customers appreciate you compromising on a chunk of their profit for their happiness. This strengthens the bond between the buyer and the seller. It’s also imperative for brands to make good on their promise and offer authentic discounts. If you increase the price by 10% and then offer a 10% discount, the customers will quickly catch on. This would only damage your relationship with the customer. 

Every time you offer a discount through coupons, you consumers will be enthralled to avail your offer. However, offering shady or unrealistic discounts may lead to the exploitation of the trust developed. Therefore, do your research before offering discount coupons to your customers. 

3. Keeps Consumers from Exploring Other Options:


Research has revealed, discount coupons reduce the tendency of consumers to shop around in search of the product you are offering. The reason is the sense of urgency discount offers and coupons create. People don’t want to miss the opportunity to save money. This opportunity distracts consumers from going for another option to purchase the product you are offering for a discount. This makes your brand their first choice when it comes to buying a specific consumer good. 

There is a lot of competition in the eCommerce business industry these days. Every brand needs to put its best foot forward to keep its customers hooked and satisfied. One of the biggest factors consumers consider while making a buying decision is the price of the product. This is why different businesses are teaming up with dedicated coupon sites like EMUCoupon. To effectively deal with the competition in the digital space, companies need to offer incentives such as discount coupons. 

4. Discount Coupons Induce a Sense of Urgency:


Brands can create a sense of urgency by offering incentives such as discount coupons to their customers. They know their desired products will not be available at a discounted price forever. Therefore, to save money, they try to buy as much as their pocket allows them. According to Psychology Today, consumers also feel anticipatory regret associated with missing out on a good deal. To create this pressure, the brand needs to use specific words in its copy to move past customers from buying threshold. 

5. Your Consumers Expect More Discounts:


Just like any other thing in life, there is a downside to coupon marketing strategy. Discounts become expected of your company if you keep offering them from time to time. Consumers get trained about what to expect from you when making a purchase. As a consequence, consumers stop buying items from your brand at the regular price and keep looking for discounts. 

In the online business industry, it is extremely common for consumers to expect free-shipping promotions on items they purchase online. To prevent that from happening, marketers are encouraged to be extremely strategic in the timing and type of discount coupons they offer their consumers. 

6. The Rise of Digital Coupons:


With the advent of the internet, people have better and easier access to coupons. In the US, digital coupon consumption has grown by over 22% between 2015 and 2019. According to a report, over 92% of the respondents admitted to using discount coupons at least once in 2018. 

Famous coupon-offer websites generated over 32.6 to 68.4 million website visits each month in 2019. With online shopping being one of the only ways to shop during the COVID-19 pandemic, it is believed that more coupons will be consumed in the coming months. eMarketer suggests, the number of adults redeeming discount coupons by the end of 2021 will rise to 145 million. 

7. Coupons become Popular in Recession:


We are faced with one of the biggest economic downturns today. Both brands and consumers are suffering from the economic fallout. During these times, coupons seem to be the only hope. Looking at history, we realize brands use promotional strategies to increase their sales during difficult times. 
A rise in coupon consumption was observed during the Great Recession between 2008 and 2009 in the US. The figures rose to 27% with 3.3 billion coupon users. During the Great Recession, people were aggressively and extensively using discount coupons. 

When applied correctly, money-saving tactics serve as the best promotional tool for brands. They can use discount promotions to attract new customers, reduce cart abandonment, boost brand loyalty, promote positive feelings about the brand, and spur trials, and more. 

During economically difficult times, consumers choose brands that provide them the best value for their hard-earned money. They evaluate every product in terms of affordability and savings. According to Mark Dolliver, the Principal Analyst for eMarketer, if the Coronavirus kept sweeping across the world, Economizing will become the primary procedure for the selection of the right goods. 

How businesses can drive the best results with their coupon marketing? 

Once you have identified your target market, it gets easier to create a discount coupon strategy that works. You need to understand the psychology of your consumers to decide the type of coupons you will be offering your clientele. You can launch the best coupon promotion strategy by following the below-mentioned steps:

  • Set a goal:


You need to be clear about your goals before creating a plan. If you don’t know what you are working towards, you are destined to fail. There could be any goal behind launching a coupon marketing strategy such as increasing your sales, promoting a new product or service, creating hype around a lesser-known category, and more. The more clear you are about your goal, the more focused your coupon marketing strategy is going to be. 

  • Evaluate the cost:


While creating a coupon marketing strategy, make sure your discounts are not eating your profit margins. To prevent this from happening, you need to take your time calculating the numbers before you eventually launch your coupon marketing strategy. Make sure you are comfortable with what you are offering your customers. 

  • Decide necessary restrictions:


Decide the necessary restrictions you are going to put on coupon usages such as thresholds, the expiration date, excluded items, and more. This step will help you avoid a possible conflict in the future. 

  • Compare your offer with your competitor:


Consumers will be inclined to go with a brand that offers them better value for money. Before launching your discount coupon campaign, you need to compare your offerings with the rest of your competitors. However, do what suits your finances better. 

  • Analyze outcomes:


Survey to see what your consumers are looking for in terms of discounts. Create a strategy keeping their preferences in mind. Sometimes, consumers don’t expect what you think they do from your brand. 

Conclusion

We all love saving money and would never let a chance go. Coupon marketing and consumerism have a complex relationship. It isn’t always right to distribute discount coupons. It does work as an effective promotional tool but if your consumers get used to discounts, they may never buy your products at a regular price. Therefore, be very careful while creating a coupon marketing strategy for your business.

Published On: August 10, 2021








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