A smart coupon marketing strategy can play an enormous role in the success of direct mail campaigns. Furthermore, done the right way, it can be a very profitable exercise that drives new customers to your business.
You might think coupons are old school, outdated, and not worth the effort, but that certainly isn’t true. In fact, research shows that most (about 96%) Americans use coupons – maybe not all the time, but sometimes. Everybody likes a good deal, and if a coupon offers a discount, you’re going to get takers. And it doesn’t matter who they are, how much they earn, what sort of education they have, or even how old they are.
Here are some surprising statistics that show just how varied the direct mail coupon market is:
- Wealthy Consumers About 50% of people who earn at least $150,000 per annum use coupons at least 50 times a year. That’s roughly once a week. Surveys indicate that anyone in a household earning $100,000 or more is twice as likely to use coupons than households that bring in less than $35,000. They might buy more expensive products, but they will still use coupons to get a discount to save money.
- Consumers with a College Education A survey undertaken by a company that specializes in coupons shows that those with a college education are 78% more likely to use coupons that those without a college education. Whilst no specific reasons are cited, if you’ve got access to people with qualifications, add them to your next direct mail coupon campaign.
- All Ages There’s a general misconception that elderly folk are the ones that use coupons the most. Rather, young adults aged between 18 and 34 are even more likely to use them. There is evidence that millennials are more likely than anyone else to use coupons to plan their shopping sprees. According to an American advertising firm, Valassis and market research firm, Ipsos, more than 90% of millennials in a survey they undertook increased their use of coupons. Most seem to find and share them via social media.
Why You Should Include Coupons in Your Direct Mail Campaigns
According to various studies, many customers regard coupons as a kind of reward for doing business with particular brands. Many will even switch brands just because of coupon offerings, especially when the discount offered is around 25%. By offering worthwhile coupons, you can keep your loyal customers and maybe steal a few from your competitors.
Another important factor is that coupons provide businesses with the opportunity to track the response rate of customers who have been targeted. You can also use them to link sales made as part of the direct mail campaign as a whole, which will provide you with the ability to calculate an ROI more accurately.
What Products do People Use Coupons to Buy?
While it is true that many people use coupons to buy products they are familiar with, the statistics show that as many as 86% are prompted to try new products and services when offered coupons.
The type of product or service varies, but it seems that about 60% of coupons are for non-food items including office supplies, cleaning products, and clothing. They are particularly popular with restaurant-goers.
While traditional coupons are printed, today online coupons are also gaining ground, together with mobile coupons. This is another important consideration.
Ultimately, regardless of the type of coupons you send out, it is important not to make assumptions about who will respond to coupons and who won’t. It doesn’t matter how old they are, what education they’ve achieved, or how much they earn, people love getting good deals.
There is no doubt that coupons will help all kinds of businesses attract new customers and keep those they already have. If you’d like to add coupons to your direct mail campaigns, contact Wallacegraphics. We are the direct mail experts and will have you covered from printing to postage and mailing. Call us today!