New York SBDC Research Network

Article by Lucy Koch From eMarketing From their mailboxes to their mobile phones, shoppers look for coupons everywhere, but convenience is a must. For marketers, it’s important to provide consumers with discounts that are easy to find and use. Consumers across the board use physical and digital coupons, according to the survey, but a deeper dive into shopper behavior reveals nuances. Coupons—paper and paperless—are most popular among millennial parents (96%) and parents in general (95%). The general population of Gen Xers (93%) was close behind, followed by millennials (92%). Younger shoppers are more likely to use paperless coupons, with 88% of millennials indicating use vs. 83% of Gen Xers and 64% of baby boomers.

From eMarketer : Though some people prefer to enter the supermarket armed with a detailed grocery list, an attractive coupon can trigger impulse purchases, and encourage consumers to buy something they may have otherwise not. In fact, an Inmar survey of 1,000 US grocery shoppers in January 2018 found that nearly four in 10 respondents had bought more than they intended to because of a good deal. And almost as many bought from a brand they wouldn’t have otherwise purchased. As expected, consumers continue to rely on a combination of coupon types for savings. Fully 55% of those surveyed said they use both digital and paper coupons.

From eMarketing : Despite Americans’ broad embrace of smartphones, mobile coupon usage has not become as widely and commonly used as might be expected. According to eMarketer’s most recent estimates, only about half of all mobile device users in the US have redeemed a mobile coupon even once in the past year. While the number of US mobile coupon users is expected to increase 10.2% to total 123.0 million this year, modest growth is projected in the coming years. Meanwhile, paper coupons are still far more commonly used.

In an email I received earlier this week from Portfolio.com , I read an article that taught me a lot about online coupon websites. Titled Coupon Clipped , the article discusses business owners and the mixed feelings they have about coupon sites. The article tells an interesting story about the business owner of a spa who posted a 60% off coupon for a hot stone massage to the coupon website Groupon . Within 24 hours, he sold 1,288 of the deals, exceeding his expectations and the expectations of "the trendy national couponing site". While the increase in sales was a good thing, the business was almost overwhelmed by the number of appointments made. The bottom line - advertising on a coupon website might be good for business, maybe even too good.

A Startup.Biz article outlines five recommendations for "coupon success." Number one - naming a specific product or service - is extremely important. If a company is trying to offer $10 off a new $50 service, for example, and customers only know about a $150 service, the coupon is likely to be ignored. Possibilities that lie in the opposite direction are even worse. If people apply the coupon to a $15 service, the company will probably lose money. It risks being overwhelmed by bargain shoppers and losing more solid customers, too.