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Coupons and Customer Loyalty Relations: A 2021 Statistical Overview

Inspiring brand loyalty is the ultimate goal for any business. Experts often apply the Pareto Principle to demonstrate that 80% of sales often come from 20% of consumers. While this may not be completely accurate, customer retention does have its perks.

According to Bain & Company, a 5% increase in customer retention often results in at least a 25% increase in profit. Businesses employ a number of tools to keep valuable consumers around. Among these tools, coupons have emerged as an extremely effective option.

eCoupon and promo codes are usually seen as marketing instruments that attract first-time buyers. But the latest stats gathered by ClothingRIC show they instill loyalty among old consumers as well.

20% 80%
20% 80%
Important
Not Important

Coupons & Customer Loyalty The Statistical Relation

Discounts and coupon codes can be used to make customers feel valued. They help foster a connection between the business and its clientele. Statistics show coupon codes work in retaining customers.

Why Improve Customer Experience

Why improve CX?

The top three reasons why businesses proactively manage and invest in customer experience are to:

  1. improve customer retention

  2. improve customer satisfaction

  3. increase cross-selling & up-selling

42% 33% 32%

Are Customers Willing to Switch Brands for a Coupon?

Customer retention statistics published in 2016 show the importance of loyalty programs and coupons.

  • 49% of consumers are willing to shift towards another brand if it offers a coupon.
  • 75% believe loyalty programs are a part of their relationship with a brand.
  • 73% customers only recommend brands with a good loyalty program.
75%
73%
49%

Coupons Are An Effective Tools of Marketing

“In recent years, coupon codes have become a staple of marketing and customer engagement” says Julia Markle, senior editor of ClothingRIC. Some of the recent data suggest their value in retail is undeniable.

  1. 90% of consumers use coupons in one way or another. (Valassis)
  2. 83% of shoppers say coupons can directly shape their buying behavior and make them more biased towards a particular brand. (Inmar)
  3. People who use coupons spend 24% more than non-coupon users. (Blippr).
  4. $91 billion coupons are expected to be redeemed by 2022 (Juniper Research).
  5. Digital promo codes have become more widely used than coupon-clipping due to the on-going pandemic (WSJ).
  6. 70% of people who open a company’s email are in search of a deal or coupon code. (Campaign Monitor).


90%
Purchase Soon
90% of consumers use coupons in one way or another. (Valassis)
83%
Purchase Soon
83% of shoppers say coupons can directly shape their buying behavior and make them more biased towards a particular brand. (Inmar)
24%
Purchase Soon
People who use coupons spend 24% more than non-coupon users. (Blippr).
$91
$91 billion
$91 billion coupons are expected to be redeemed by 2022 (Juniper Research).
Digital
Digital promo codes
Digital promo codes have become more widely used than coupon-clipping due to the on-going pandemic (WSJ)
70%
70% of people
70% of people who open a company’s email are in search of a deal or coupon code. (Campaign Monitor)

Instant Coupons Make Customers Feel Rewarded

Based on a YouGov survey of 3,350 American consumers, instant coupons are third most effective in making the customers feel rewarded after cash backs and birthday gifts. 30 % of consumers feel ‘very rewarded’ while 49% feel ‘little rewarded’ by the gesture.

Very Rewarded
A Little Rewarded
Not Rewarded
Cash Back
31%52%17%
Birthday Gifts
38%42%20%
Instant Coupons
30%49%21%
Free Samples
32%47%21%
Wallet Punch Cards
17%54%29%
Invitations to Special Events
17%44%39%
Tiered Programs
9%40%51%
Merchant Credit Cards
11%37%52%

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Do Deals & Discounts Make Consumers Brand Loyal?

What does it take to keep a customer around? According to Yotpo’s State of Customer Loyalty report 2018, 55% of shoppers value product quality above everything else while 25% of buyers can be attracted solely through good deals and discounts.

What makes you loyals to a brand?

The Product 55.3%
Great Deals 25.7%
Customer Service 7.1%
Convenience 5.7%
Other 3.2%
Cause or Charity 1.8%
It's Popular 1.2%

What Channels Do Marketers Use to Promote Offers?

While coupons are often the weapon of choice to realize this goal, marketers utilize different mediums to reach out to potential loyal consumers.
A survey of U.S retail professionals by Emarsys shows which channels are prioritized for inspiring loyalty among customers.

80%
44%
36%
11%
8%
Email Marketing 80% use email marketing for retention.
Social Media 44% believe social media drives retention.
Organic Search 36% prioritize the organic search for retention
Mobile Marketing 8% maintain that mobile marketing is the primary driver for retention
Market Places 11% feel marketplaces drive retention

Are Mobile Coupons Efficient In Building Loyalty?

Jul 2020

Mobile Coupons Efficient In Building Loyalty

Mobile coupons have become an important part of eCommerce marketing in recent years. Latest stats gathered by
ClothingRIC research team shows businesses who are not investing in this mode of promotion might be missing out.

Smartphone
Users
6 in 10
18-34years
actively
44%
receive rewards
mobile device
57%

Business Need Loyal Customers

“Customer retention requires low investment but has a high return.” explains Business Blogger Alex Bill”.
“Turning buyers to customers that prefer your brand over others is a dream of any marketer” he explains.

Loyalty statistics from different studies show just how important frequent buyers are for businesses.

Loyalty statistics from different studies show just how important frequent buyers are for businesses.
10%
20%
30%
40%
50%
60%
70%

Which Generation is Most Brand Loyal?

Marketers should take it as welcome news that the young generation of shoppers is extremely loyal.
In a survey published by A. Guttmann, it was found that Millennials (24-39 years) are the most loyal generation as 60% tend to stick to a brand they like.

I am a brand conciouse person
Once I find a brand I like I tend to stick to it
0 10% 20% 30% 40% 50% 60% 70%
Gen Z (8-23 years)
Millennials (24-39 years)

Meanwhile, Gen Z (8-23 years) are right behind their Millennial counterparts with 55% brand loyalty. Other statistics show that Generation X and Baby Boomer aren’t as brand-savvy or loyal to particular products.

Conclusion

In today’s ultra-competitive environment, loyal customers are vital for any business to survive. However, it’s not just the quality of the product that can inspire devotion from thousands of customers.

On most occasions, consumers are looking to be valued by a brand. Giving exclusive coupons to regular buyers is a way of showing them you appreciate their dedication. Statistics accumulated above demonstrate that it’s possible to create a loyal customer-base through strategic discount marketing.

Cultivating relationships is good for business. Coupons are an important part of this entire process.