4 Ways Coupon Sites Help Retailers Better Engage Consumers
Today's consumers, who increasingly view online shopping as a competitive sport, use many different tools to find the products they want at the best price, including coupon aggregation sites like CouponCabin.com and RetailMeNot.com. Commission Junction recently conducted a study of 1,000 coupon site users to better understand the influence coupon sites have on shoppers.
According to a recent eMarketer report, more than half (52 percent) of online shoppers now use digital coupons. Are retailers capitalizing on this trend? How can they benefit from the growing use of coupons and coupon sites? Our study identified four ways coupon sites can help retailers better reach their customers:
1. Coupon sites introduce shoppers to new brands and retailers. Online shoppers consider many retailers before purchasing. One in three apparel shoppers, according to a Google study, now consults more than five sites before buying — and are receptive to new brands during this research. Many shoppers, however, need a compelling reason to try a new retailer, and coupons can be a persuasive tool to accomplish that. Our study finds that 52 percent of coupon site users agree that coupons have influenced them to try a new retailer. Some marketers fear that coupon sites undermine hard-won brand equity, but shoppers report positive feelings toward brands that offer coupons. Coupon sites, in turn, are influencing where shoppers ultimately make their purchases.
2. Coupon sites attract highly desirable online customers, who tend to have higher incomes, make more online purchases and have higher average order values than other consumers. Coupon sites are an ideal place for retailers to connect with customers likely to deliver an overall high lifetime value. A Nielsen study found that households earning $70,000 or more annually are far more likely to use coupons than average income shoppers. The global research firm Ipsos also reported that among affluent shoppers (defined as $100,000-plus in annual household income), 54 percent use online coupons once a month or more; 23 percent do so at least once a week.