Coupons vs. Content

Every economist will tell you to never lower prices on loyal consumers and, if anything, to raise prices on that segment. Yet, the more competitive a market becomes, the more often you’ll see discounting and coupons available for price-sensitive and loyal consumers.

I believe coupons have their place to drive trial and conquest—see our digital coupon apps comparison report here. However, everything else that goes into your product and the brand is what builds loyalty.  That story, told well in an integrated omnichannel approach, is what will expand your loyal base, incentivize them to buy again, and help your brand maintain full-price profit margins.

According to a CPGMatters article on couponing and a 2017 survey by Valassis on 8,550 consumers, 95% of consumers want coupons for grocery items. I’m surprised it’s not 100% because who wouldn’t want a lower price?

Consumers are using a range of options from printed, online, and digital apps to identify savings, and 57% of consumers and 73% of Millennials are more likely to buy groceries online if they can use coupons.

Coupons for CPG brands are a great method for reactivating lapsed members in your CRM or as a surprise and delight tactic on birthdays or other special occasions. Beware though: predictability or overuse is a direct path to diminishing your brand and losing margin permanently.