In 1887, Coca-Cola participated in the distribution of the first-ever coupon venture. Since then, the company has changed the future of commerce. With the Coca-Cola voucher, the recipients could redeem one free glass of Coke from any of the dispensaries. Coke started its journey one year earlier. It got immense benefits from this exclusive strategy of marketing. Also, it has encouraged both the customer and the adoption of the vendor.
According to coupon Sherpa, an estimated one in nine Americans has received a free Coca-Cola in 1894 and 1913 for a total number of 8500000 free drinks. In 1895, Coca-Cola started serving in every state.
Now nearly most of the brands and retailers use discounts and other promotions to grow with their business. Companies that understand this psychology of what a special offer creates renders more happiness to both new and returning customers. It works as a great way to boost long-term sales and profit.
Some data-backed reasons about why you should use special offers:
Here is what the research has to show about how the consumers are going to behave when they get an offer. Also, here is how the strategic discounts for a brand can contribute to the success of a company.
- Coupons can be the reason for happiness:
According to a study by Dr. Paul J. Zak, professor of Neuroeconomics at Claremont Graduate University, researchers are setting out to know how coupons can impact the emotions of people. They have come up with a discovery that coupon recipients who got a $10 voucher have experienced at least a 38% rise in their oxytocin level.
They were 11% happier than those customers who didn’t receive any coupons. Moreover, their respiration dropped by 32%, and heart rate decreased at least 5%. Also, their sweat level was 20 times slower than the others. Hence, they felt more relaxed.
- It enhances the overall revenue:
There are 31 billion digital coupons that are going to be redeemed very soon, according to Statist. Customers know where and when they can find an exciting deal.
Brands that issue special offers create a great opportunity for the shoppers to save their money. At the same time, it grows their sales. Bigger brands are adding up coupons to their marketing to boost the bottom line of their business.
- It helps in discouraging cart abandonment and encourages a new set of trial:
Most of the shoppers, when they go to buy something for the first time at full price with no personal experience, rely upon the reviewers. However, a discount can easily change their attitude towards the discount.
Also, it encourages them to make a purchase. A recent survey of RetailMeNot has found that 80% of shoppers say that they feel encouraged when they make a purchase for the first time with a special deal or discount.
- Helps in influencing the purchase through promotions:
As per a global survey of RetailMeNot, two-third of the consumers have reported that they have made purchases which they were not planning to make. But they did it based on their coupon or discount. Here are how retailers can encourage the customers.
- By discovering a new and related product to complement their new product launch
- Through spending above, a specific minimum order in total
- By adding a specific item to their cart
- Shoppers can reciprocate the sample:
Sample or trial size products can be a huge revenue driver for the retailers. Brands that offer a risk-free proposition for their consumers to let them try something new completely for free. The stores can use that to manage or to impress the shoppers with their samples which helps in earning consumer loyalty.
What is the price of free?
According to the scientist Dan Ariely, an academic and behavioral scientist, zero comes at a special price. Hence, retailers who price their items at the cost of zero or give it for free have a much special appeal to the customers, which can boost the sale.
What is the power of free?
As an emotional creature, people love more to accept free offers than discounts. The researchers had sold 73% more of their product when it was in a bonus pack than when it came up with an equivalent discount. Shoppers believe that they get a much better deal when they get something free instead of spending less on their overall buying.
Science Has to Say About Discounts, Promotions, and Free Offers Conclusion:
The best discounts and promotions with the free products can come up as an amazing strategy. Avoiding the bargain hunters, preserving your brand’s integrity, and encouraging your new product trials are the best way to drive more sales.
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