Commentary
Coupons Benefit Retailers, Too
- by Jack Loechner , Staff Writer @mp_research, June 25, 2010
According to the latest Online Shopper Intelligence survey, one-third of online shoppers surveyed said they generally use coupon sites while shopping online. 35 million consumers visited coupon sites in April 2010, up 5% from the year prior. Besides the consumer benefit, says the report, coupons have a significant impact on retailers' bottom lines.
More than half of the consumers who used a coupon code during their last online purchase said that if they had not received the discount, they would not have bought the item(s), suggesting that coupons can be a highly effective sales driver.
In response to the question "If you did not have a coupon, would you have made a purchase..." respondents answered:
- No... 57%
- Yes...43%
Source: Compete, June 2010
Coupons have a high ROI, concludes the report, as the small discount consumers receive encourages them to spend money. When asked how much they spent on their most recent online purchase, consumers who used a coupon spend almost twice as much as consumers who did not use a coupon.
How much did you spend? (average spend on most recent online purchase)
- With coupon... $216
- No coupon... $122
Source: Compete, June 2010
Coupons are an effective way for retailers to build good will with their consumers and increase customer satisfaction, says the study. When asked about their overall shopping experience, satisfaction was higher for consumers who used a coupon than for those who did not.
Satisfaction with most recent online shopping experience (Extremely or Very satisfied)
- With coupon 92% Extremely or Very Satisfied
- No coupon 88%
Source: Compete, June 2010
Consumers who used a coupon said they are more likely to buy from the retailer again when compared to those who did not use a coupon. Not only will coupons encourage higher order value purchases, says the report, but they also increase that consumer's likelihood to purchase from that retailer again.
Are you likely to purchase from this retailer again? (most recent online purchase, Extremely or Very Likely)
- With coupon 91%
- No coupon 86%
Source: Compete, June 2010
To find more information from Compete, please visit here.
Jack Loechner is the Editor of The Center for Media Research's daily Research Brief. You can reach him at jack@mediapost.com.
The opening paragraph of this article implies that the value of coupon sites and the value of coupons are one and the same.
The value of coupons, of course, is that they allow retailers to attract price-sensitive buyers while maintaining margins in other segments.
However, retailers gain little from coupon sites which just repeat coupons available on the website. From my perspective, the coupon sites are nothing but a useless toll that a retailer pays. For a larger discussion on why retailers should avoid coupon sites, you can read my blog at
http://www.anovagrp.com/index.php/coupon-site-affiliate-toll/