Couponing has always been a successful tactic in CPG, particularly when it comes to persuading consumers to try new products. While paper coupons are still popular, digital coupons are taking off, and far outpacing their predecessors in redemption rates.
What will the coupon of the future look like? How will it evolve to adapt to today’s multichannel shopper?
It will be customized. Just as many marketing messages are personalized, coupons will be personalized based on customer data. They will be tailored not only to customer interests, they will also be customized to what the consumer can afford, based on demographic data. Additionally, coupons will likely be geotargeted, driving shoppers to their local store to purchase that discounted item.
It will be shareable. Consumers are actively seeking coupons online, and 9 out of 10 millennialsare likely to share the offers they find. Not only does this give CPG marketers the reach across the ripple (or even viral) effect of sharing on Facebook, Twitter, Pinterest and other platforms, but an offer shared by a friend on a social network is often perceived as an endorsement. But be prepared: as Accenture warns, if your coupon does go viral and exceed anticipated demand, you must be prepared to deliver the product offered – or risk tremendous backlash. According to their report, “a few CPG companies offered discounts without confirming voucher fulfillment processes in all local participating stores. And some did not clearly articulate which stores were participating in the program. This resulted in a lot of noise throughout the social communities where consumers complained about stores refusing the vouchers, and therefore, doubted the credibility of the brand’s offer.”
It will be portable – or invisible. Of course, coupons will also have to be mobile. Sites like RetailMeNot and CouponCabin have been providing coupon codes to savvy shoppers for years. These codes are usually geared toward the online shopper, but printable codes are available that may be handed to a retailer. In recent years, customers have resorted to simply showing retailers the code on their mobile handset. Today, coupons have become fully mobile: In fact, 1 in 3 consumers with smartphones have searched for coupons on their mobile device, and more than 25% have redeemed a coupon on their device. Furthermore, CPGs are seeing redemption rates that surpass paper: While the redemption rate for paper coupons averages around 1%, the redemption rate for paperless coupons is currently at 2.5%.
Some coupons have already taken the next step and become so portable, they’re invisible. These coupons can be saved automatically to a customer’s loyalty card, so that by simply handing a cashier the card (or giving them a phone number), the discount can be passed automatically to the customer, without ever having to scan a coupon or enter a code. Stores including Shop-Riteoffer this option.
So the coupon of the future is already here, alongside the coupon of the past. It’s now up to CPG market leaders and retailers to start taking full advantage of their new toolset, leveraging customer data to create and deliver targeted offers that will increase sales, drive product trails and enhance loyalty and repeat buying.
To learn more about MediaMath’s solution, click here.