It is interesting to observe how the good old coupon is not only surviving, but actually thriving in this hi-tech and virtually cashless society of ours. Cheerfully handed over the counter, coupons are offered for collection in little booklets here, there and everywhere. And when you have enough, you get a special deal on the fancy Peugeot pepper grinder on display at the cash register. No coupon – no grinder. Not even at full price. But, as a club member, you will get double up on your coupons, if you pay via the app.
This is customer engagement at full blast, and it definitely works. It’s all about revenue for supermarket chains, and coupons really move some serious business.
But how does an old school concept like coupons manage to maintain such a strong grip on consumers? Is it the feeling of exclusivity when getting something special or is it the center for pleasure in the brain tripping on collectoritis or bingo fever? Or is merely down to needing a toaster, and getting a good deal?
Giving customers incentive to buy more, coupons are more effective than a special offer with reduced price. But do coupons build actual customer loyalty?