Awareness of online discounting is snowballing as consumers consolidate retail spending and trawl online for the best possible bargains.
As a result of the interest and business driven online during this recessive period, organisations including Unilever, Mars, Colgate, Palmolive, Johnson & Johnson, GlaxoSmithKline and Ocean Spray have recently turned a lot of their attention and marketing spend towards combining online brand experiential campaigns: with internet printable coupons satisfying the need to improve customer retention and generate measurable incremental sales.
These organisations are exploiting the inherent customer engagement associated with using internet coupons as a direct response mechanism. By choosing to print the coupons, consumers are automatically engaged in the process. Having made the proactive decision to print, consumers are more likely to be motivated to redeem the coupon and are far more engaged in the brand journey.
This shift in strategy also reflects the growing demand for marketing activity to deliver tangible return on investment. Internet printable coupons are highly measurable, providing marketers with rapid insight into both the number of coupons printed and the number redeemed. With typical redemption rates of 23.5 per cent and above (Source: Couponstar), in contrast to less than 2 per cent for other major coupon distribution mediums, internet printable coupons are enabling these brands to cost effectively acquire new customers and drive in-store sales. A common mistake when evaluating coupon promotions, internet coupons included, is to only take total redemptions and the percentage of distribution to redemption rate into consideration. In fact, the coupon is in itself a powerful brand communication and advertisement in its own right. It is not uncommon for a coupon to have only a satisfactory or low redemption rate yet be the primary cause for in-store sales uplift. This is easily explained by the fact that consumers don't always remember to bring their coupons with them to the store, however many respond directly to coupon promotions by voting with their feet.
Brand value
However, if organisations are to use coupons to reinforce brand value and achieve incremental sales growth, offers need to reflect the fast changing behaviour of middle England.
To reach the consumer and boost customer engagement throughout the brand lifecycle, offers need to be targeted, relevant and delivered via the growing number of niche lifestyle sites, such as GMTV, bounty.com and UKTV, that are frequently visited by the middle classes, particularly women. The approach must be dynamic, supported by continual consumer profiling to design offers that reflect an individual's customer value and build upon previous interactions.
Internet coupons are providing organisations with a highly effective route to the newly cost conscious middle England. But to be effective the focus must remain on customer engagement not just discounting. By targeting this audience with relevant coupon offers, organisations can reinforce brand value and loyalty and, critically, drive measurable in-store sales.
Conclusion
There is little doubt that the U.K. is in for a rocky ride over the next 12 to 18 months as consumers and marketers alike react to the shift in economic fortune. Yet there is a silver lining. The pressing demand for tangible return on marketing spend and brand engagement will drive greater growth in strategic sales promotion via the internet, such as the use of internet printable coupons, to deliver both a relevant route to the key middle England market and the quantifiable payback required in today's challenging economic climate.
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