It is an indisputable fact that a surreptitious proliferation of coupon sites has been happening in the recent years. Consumers have also developed a tendency to look for coupons and discounts in whatever they buy. They do not hesitate to switch brands also if they get a better deal. But, we should delve deep and find out the factors that have contributed to such a hype on coupons.
Factors that contribute to the coupon mania are as follows:
Economic Downturn
The economic downturn that began in 2007 has been one of the major reasons that started inspiring people to look for discounts in all their purchases. The concept of couponing that had been dormant till then, erupted like an active volcano. People got so much used to couponing that they continue with the strategy even after the economy has begun bouncing back. Surveys conducted during 2010 revealed that the number of people using coupons has been increasing year after year. Experts opine that the concept is here to stay and there will be many more online buyers who will look for coupons that will get them good discounts .
The extraordinary growth of Social Media
The results from the growth of social media sites like FaceBook, Twitter, etc. are extraordinary. These sites have been growing phenomenally and the population using these sites is also increasing exponentially. Almost all the users of these sites are consumers and unlike earlier days, they provide and derive value from these sites. This means that they contribute to the making or marring of brands. When these consumes “Like” or become fans of brands, they are provided with attractive offers, deals and coupons.
Coupons and deals offered in Digital Form
Manufacturers, dealers and retailers have understood the burgeoning power of the concept of couponing and so, they are now making coupons available online. They make these deals and offers more attractive by adding a dose of fun content into them. Since the number of people who do online shopping is rapidly increasing, the popularity of digital coupons has been registering unimaginably staggering growth.
Increase in usage of Smartphones
Due to the whopping increase in the usage of smartphones, consumers are likely to receive massive amounts of mobile coupons. At present, the share of mobile coupons in the vast amounts of digital coupons is quite small but, this share has a great potential to grow manifold. Further, mobile coupons may wield its influence when the consumer is in the process of making his purchasing decisions. Reputed brands and retailers seem to have understood the potential of mobile coupons and hence, they have started offering them in a big way. Consumers who are in the stores or restaurants can easily download an app, a check-in, etc. to have access to the discounts that come with these mobile coupons.
How retailers and brands should plan their strategies
Brands, dealers and retailers should make an in-depth study of consumer behavior for developing an effective strategy for the implementation of their couponing strategy. The best way to understand consumer behavior is to study how discounts and offers have influenced the purchasing decisions of consumers in the past. Such discounts and offers have been there since many decades and a study of their results will help retailers and brands to devise their strategy. But, they should be careful not to over-do things because issue of excessive amounts of coupons may create apprehensions in the minds of consumers. Excessive issue of coupons may also lead to over-zealous consumers resorting to “Extreme Couponing”.
About the Author: Riya Ronalds is the author of this post and loves to nurture her shopping addiction with the help of a 6pm coupon code for all her favorite clothes and accessories.
