Long relied on by marketers to help drive sales, over the past 120 years, coupons have kept consumers searching, snipping and congratulating themselves in pursuit of a deal. Recent history has shown that the ubiquitous consumer deal provides not just a money-saving opportunity, but a personal experience.
From competitive sport and aspirational escape to virtual community and personal affirmation, the Deal has become a worthy challenge for American consumers. The primary driver of change in this arena can be paralleled to the evolution of consumer Internet use. The digital landscape, through a combination of local, social and mobile opportunities, has elevated deal-seeking to a deeply engaging and in some cases, personally fulfilling pastime.
The traditional coupon -- the stack we find in the Sunday circulars, for example -- is not as compelling to the millennial consumer as it was to his/her Boomer parents once upon a time. Many consumers have been conditioned to seek best prices before buying. They treat the hunt as a game to be won and the retailer as a challenge to be conquered, and employ a range of technologies and services to ensure they are getting the best bang for the buck.
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However, when a new set of rules are attached to coupons, they can be converted from a “one and done” experience to a vehicle for creating an authentic connection with your target buyer and building loyalty. Marketers can appeal to the next generation of deal seekers by reinventing the coupon and aligning it with evolving consumer expectations.
Tips for reinventing the daily deal include:
Make it personal
The magic of coupons 2.0 lies in EXPERIENCE. A range of opportunities exist to create a strong brand experience within the coupon conversion. When a coupon is offered as a reward for a positive action -- as a validation of work well done, consumers get a double rush. They feel a personal connection to the brand that confers the approval points along with the deal. This connection and personal fulfillment is what drives loyalty. For example, providing a discount or deal for taking a step to improve one’s health (losing weight) or taking an eco-conscious action (biking instead of driving) truly makes the coupon a reward, not an entitlement.
Make them earn it
Handing out coupons without any work involved reduces the likelihood of redemption. Combining fun gaming elements like challenges and badges with your rewards is a great way to engage and entice your customers, and encourage deeper interactions with your brand. An interactive contest? Great. A treasure hunt that leads to a world of killer coupons that ascend in value as you level up, allowing you to barter value with teammates and snatch competitors coupon gold? Even better. Games have been demystified as a guy thing (55 percent of online gamers are women), and provide interesting techniques to keep customers of all demographics interested and engaged.
Tie it to a larger purpose/wallet activism
Today’s new generation of shoppers, especially the coveted millennials, are motivated by the “triple bottom line” -- goods and services that offer financial competitive advantage, social equity and the confirmation of corporate citizenship. A slamming 92 percent of moms today want to buy a product that supports a cause. By transforming a coupon into a true indicator of social accomplishment for completing an action for the greater good (community, environment, education etc.), you make the coupon a badge of honor.
Make it SUPER easy
Thanks to advances in analytics, mobile and location-based technology, marketers can now make offers more targeted and personalized –- and the investment is paying off. eMarketer recently estimated that 47 percent of consumers redeemed digital coupons in 2011. Apps like Scoutmob have also popped up, feeding into 20- and-30-something’s love of quippy, sassy copy and excellent one-time deals in their neighborhood. By offering a consumer a highly relevant coupon that will make their lives easier, redemption rates will follow.
Samantha, timely work (the next headline states Food Marketers issue 13% fewer coupons!) We build brands on hundreds of campuses. Coupons are key to campaigns. For Coupons to be effective they must Mix it Up. 20% Off is nothing compared to 'Free Fries' ... the same Deal over and over is just Noise. Go Bold or stay home. don't let your brand be labeled boring. Use Coupons in small bursts to get Big Attention. Contests are gaining traction- but brands need help on "the last mile" ... plong@ucampusmedia.com
Make it worth it with a big enough offer for each coupon that people make sure they find it in the mail or newspapers (making a value proposition a proposition for value) easy to use on their ink and paper dime. No half hour ridiculous time suck for a buck. 20% ain't gonna' do it. *This is outside the seek and compare range.*