It benefits the consumer, does it benefits the retailer?
Do you think couponing is dying? Roughly 25% of the U.S. population are now using digital coupons and millions more still click coupons from Sunday papers. Couponing dates back to the 1880s when a pharmacist created a syrup for what we now know as Coca-Cola and offered free vouchers for the beverage on the street. The concept has evolved from the newspapers to digital coupon.
As a frugal person, I wanted to get in on the couponing experience. I’ve seen the reality shows about creating a stockpile of household items but had no clue how to begin. So I attended a workshop explaining the best practices for couponing with having to have a lamented binder full of clipped coupons.
During this workshop, I learned the key to being successful at couponing. It’s all about utilizing a website that highlights store ads and matching them up with current coupons. To ensure I had all the coupons, I initially purchased four subscriptions to my local newspaper. That was too many for a family of two so I downgraded to two subscriptions. I learned to date my coupons and store them for later.
On my coupon shopping trips, there’s a different level of excitement. It feels like, I know I’m going to save money, but I’m worried I might have overestimated how much I’ll actually save. Either the cashier is impressed by couponing skills or annoyed they have to scan so many coupons. My greatest couponing trip, I paid $8 for $60 worth of product.
The possibility of loss of profits is very real to a retailer. So how is this helpful to retailers? The good news is it will definitely get customers in the door. Consider that 85% of consumers look for coupons before visiting a retailer, so without special offerings, retailers might face losing out on that group of people. This strategy of getting customers in the door can lead to sales of other products within the store.
Couponing can also make prices more competitive against competing stores. Meaning that prices with a coupon applied can make one brand significantly cheaper than others. For example, a coupon for $0.50 off a dozen eggs could beat competitors pricing. This tactic can lead loyal and new customers into the store. Research also states that 84% of shoppers say coupons influence their store choice.
From a consumer standpoint, the rush of getting a great deal is a necessary experience. Couponers like myself, crave a good deal and will search different stores to find the best one. Savvy shoppers seek deals and that isn’t changing. Remember that couponing is not a dying activity due to digital coupons and other mobile apps. It is an evolving strategy benefiting both the customer and the retailer.