A Simple Solution to Attract 63% More Customers!

That’s right, 63% of adults may not be buying from you for one simple reason.

In an economic downturn consumers are looking for one thing, and it impacts how and what they buy in a big way.

Consumers Looking for Deals

According to a Harris Interactive survey conducted last year:

In an economic recession consumers tend to cut budgets but, if provided discounts, they will buy – 54% of adults say they would reduce discretionary spending, and 63% say they would not make a purchase if a deal isn’t available.

In a similar survey conducted by ICOM Information & Communications (ICOM), 67% of US shoppers said they are more likely to use coupons during a recession.

Of the 1,529 US consumers participating in the survey, 45% said they were much more likely to use a coupon, and 22% said they were somewhat more likely to use a coupon during tough economical times.

Over the past 10 years, the average coupon redemption rate has declined to less than 1.0%, from a level of 1.6%, across all US coupons distributed, ICOM said.

Key Findings – Coupon Use in a Recession

• Broken down by age, 71% of consumers in the 18-34 year-old age bracket said they are much more likely or somewhat more likely to use coupons in a recession. That compares with 68% in the 35-54 year-old bracket and 63% among those 55 years and above.
• Geographically, 70% of Midwesterners said they are much more likely or somewhat more likely to use coupons in a recession, versus 69% of Westerners, 64% of Northeasterners and 62% of Southerners.
• Income didn’t make a significant difference, with 68% of those earning less than $50,000 a year saying they are much more likely or somewhat more likely to use coupons in a recession, compared with 67% for those earning more than $50,000.

But Who’s Clipping Coupons?

The age of clipping coupons and taking them to the store may be dieing, but that doesn’t mean you can’t attract customers with coupons or deals.

Websites and digital technology has actually encouraged coupon use among many consumers.

• Some 58% of consumers responding to the ICOM survey said their coupon use would increase if they could download a coupon from the internet and have it automatically connected to an electronically swiped frequent shopper card.
• No less than 77% of consumers in the 18-34 age group said they are much more likely or somewhat more likely to use coupons if given access to this paperless technology. In the 35-54 age group, 63% said they are much more likely or somewhat more likely. In the 55 and over bracket, 47% said they are much more likely or somewhat more likely.

So while clipping coupons is an old school way of thinking, this study shows that getting a coupon into your customers hands digitally may be the way to drive sales – especially during a down turn.

Tips for Success With Coupons

• Make it meaningful – consider what Ben & Jerry’s does with their coupons.
• Make it easy – Digitally deliver coupons through your website, or email list.
• Know your exposure – when digitally delivering coupons know your reach, and have a way to track redemption. Don’t end up with an expensive lesson like Starbuck’s.

If you haven’t considered offering a discount or a coupon to your customers, maybe now is the time. Use technology, digitally deliver the deals, and see if you can capture some of those 63% of consumers who would buy if a deal came their way.

This post was inspired by a reader question from Charmayne. Do you have a question you want answered? Get in touch with us.

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