Every brand is looking to build meaningful and lasting relationships with their customers. To do so, they need to employ a variety of techniques, one such example being coupons.
Brand loyalty: the story of 2 mints.
In a classic study of restaurant waiters and tipping psychology, tips dramatically rose when people felt they were being personally taken care of. When mints were offered with a check, tips rose by 3 percent. However, when people were personally handed a second set of mints after the first, tips rose by an astonishing 23 percent.
The point is everyone loves a deal — and brand loyalty can be influenced by simple attention and personal connection.
Coupons are one such technique.
According to recent research, coupons help increase brand loyalty and make consumers feel ‘special’, ‘excited’, and rewarded. Additionally, coupons have the ability to influence customer purchasing decisions, from what they buy to where they buy from. In fact, consumers say they're more likely to purchase more items than normal, seek items to buy, and buy something more expensive when they have a coupon.
In addition to increasing sales revenue, coupons can increase customer loyalty — research by ReadyCloud shows that 68 percent of customers say coupons generate loyalty.
The takeaway? Using coupons is an effective way to drive short-term sales and long-term customer retention for your business. To help get you started, Wikibuy compiled a visual explaining how to use coupons to influence customer purchase decisions and drive sales. Check out the full visual below to learn how coupons can help grow your business.
Author: Luke Fernandez runs Growth at Wikibuy, a consumer product that helps shoppers know when, where, and what to buy. As a Product and Growth leader, Luke has helped Fortune 500 companies and startups alike drive best-in-class marketing through technology and data.