Coupons are powerful tools used by businesses and shoppers alike. They go beyond saving a couple of bucks at the checkout; they serve a strategic purpose for brands and customers. Let’s break down why coupons are more than just a discount.

Key Statistics:

79% of shoppers make more purchases with coupons.
91% of consumers used a coupon in the last year.
66% of consumers tried a new brand because of a coupon.
82% of customers are more loyal to brands that offer coupons.
55% of shoppers visit a store or website because of a coupon.
85% of marketers use coupon data for targeted marketing.

Driving Sales

One of the main purposes of coupons is to drive sales. By offering discounts, businesses encourage customers to make purchases they might have otherwise skipped. People are naturally drawn to getting a better deal, so it’s a great way to boost sales volume.

79% of shoppers say they make more purchases when they have coupons.
91% of consumers have used a coupon at least once in the past year, showing how widely they are adopted.

Brands use coupons during peak sales periods or slower seasons to incentivize more purchases. Whether it’s a holiday season or an off-peak month, coupons bring in revenue when it’s most needed.

Encouraging First-Time Buyers

Coupons are often used to hook new customers. A first-time discount or an exclusive coupon for new sign-ups can be the nudge someone needs to make that first purchase. Once they’re in the door, they’re more likely to buy again in the future.

This is why 66% of consumers say they’ve tried a new brand purely because of a coupon offer. It’s an entry point into brand loyalty.

Clearing Old Inventory

Coupons also help retailers clear out old stock. When items don’t sell as expected, or a new product line is coming in, offering discounts via coupons can clear that inventory fast. Businesses avoid losses on products by quickly selling them at a lower price.

This is why 40% of brands use coupons as part of their strategy to manage inventory. Instead of holding on to unsold items, they use coupons to liquidate stock and make room for fresh products.

Building Customer Loyalty

Coupons aren’t just for attracting new customers; they’re also excellent at building loyalty with existing ones. Brands often provide special offers, like a “thank you” coupon for repeat buyers, to keep customers coming back. This sense of appreciation makes shoppers more likely to return.

A whopping 82% of customers report being more loyal to brands that offer consistent coupon promotions. It’s a simple way for brands to show their customers they care.

Incentivizing Larger Purchases

Coupons are often used to increase the average order value. Brands might offer a “$10 off when you spend $50” deal or a “buy one, get one free” offer. These deals encourage customers to spend more than they planned, bumping up the final purchase amount.

For instance, a customer who intended to spend $30 might add extra items to their cart to hit the $50 mark and use that coupon. This upsell strategy is used by 61% of retailers to boost overall sales.

Gathering Customer Data

For many businesses, coupons are also a way to gather customer data. When customers sign up for email newsletters or loyalty programs to access a coupon, brands can track their shopping habits, demographics, and preferences. This data is invaluable for targeted marketing and personalizing future offers.

In fact, 85% of marketers say that they’ve used data collected from coupon users to create more effective marketing campaigns. It’s a subtle but effective way to enhance business intelligence.

Driving Traffic to Stores and Websites

Whether online or in-store, coupons are an effective way to drive traffic. Limited-time offers create urgency, pushing people to take action before the coupon expires. Even a small percentage off can motivate a shopper to make a trip to the store or visit the brand’s website.

55% of shoppers go online or to stores specifically because of a coupon offer.
Over 92% of consumers say coupons influence their shopping behavior directly.

Competing with Other Brands

Coupons are also a critical tool in competitive markets. If two brands offer similar products, a well-timed coupon can make all the difference. Shoppers are more likely to choose the brand that offers a better deal, even if it’s just a small discount.

Consider this: 85% of consumers actively look for coupons before making purchases. Brands that neglect coupon strategies could be losing customers to competitors who understand the value of a good deal.

Conclusion

Coupons serve multiple strategic purposes for both brands and customers. They drive sales, clear old inventory, build loyalty, and even provide key customer data. Whether you’re a business looking to grow or a shopper aiming to save, understanding the role of coupons can make a huge difference.