Coupons have long been used as a valid marketing tool, and if you thought their effectiveness was dying out you’ve got a surprise in store. In fact, it’s a trend that’s on the rise—according to research by Fotorama Promotions, coupons accounted for 45% of all promotional activity in 2011, up from just 20% in 2005. Isn’t it time you gave it some thought?
Coupon activity is big news in the supermarket arena. A lot of the major chains are actually ramping up their coupon use, meaning rivals need to keep up—Tesco suffered a dip in performance when it scaled down its coupon activity whilst the likes of Sainsbury’s and Morrison’s increased theirs, so it just goes to show how effective this promotional tool can be.
Failing to offer such promotions can actually be more damaging than the impact coupons would have on margins, and the trend doesn’t look set to reverse any time soon. Since the recession hit consumers are always on the lookout to find great deals, and brands are willing to accommodate in an attempt to retain (or even gain) their custom. Because everyone’s become so used to scouting out coupons they could easily be a part of the high street for a long time to come, so it’s important for brands to stay on track.
Coupons are still an incredibly viable form of marketing, and if brands utilise it effectively they could soon notice the difference. And it isn’t just in the high street either—you only need to look at the number of discount providers and daily deal emails floating around to see that people across the board are looking to bag a bargain, and as long as the balance is right (companies need to make a profit after all) there’s no sign of coupon activity slowing down.