Consumers Say They’ll Use More Coupons. How Can Eco-Entrepreneurs Benefit?
Couponing is a strategy employed by almost all big packaged goods companies to increase trial and to encourage increased usage. Though most marketing managers today haven’t managed during a recession before, many are now learning the value of coupons during a downturn too.
A recent ICOM study of U.S. shoppers found that two-thirds said they are more likely or somewhat more likely to use coupons during a recession. Well, the recession is here and eco-entrepreneurs should consider using this effective promotional tool.
“The consumer incentive certainly is there,” said Peter Meyers, ICOM marketing vice president. “Look at it this way: households of two adults and two children who use coupons wisely can save 25% on their grocery bill annually, without cutting purchases. That saves $2,400 a year based on a typical $800 a month grocery spend, which outstrips the $1,800 economic stimulus check this family has coming in May from Washington.”
While seemingly simple, developing an effective coupon requires research and forethought. Over the past decade, coupon redemption has declined to about 1%. That is, only 1 out of every 100 coupons distributed, on average is redeemed. But, a 3-5% or higher return is not unheard of if the couponing program is developed effectively.
With consumers more interested in and more likely to try green products than in the past, providing an incentive for purchase can build your business rapidly as word of mouth travels from consumer to consumer. An effective couponing program uses key selling point copy prominently displayed on the package and reinforced on the coupon face.
But, what about all of that paper waste? To a green company, couponing, at first glance seems ecologically wasteful and contrary to eco-business practices. Fortunately, today e-couponing has become mainstream with sites like coupons.com and ecoupons.com. Savvy shoppers check out the top coupon sites prior to making a major purchase or embarking on the weekly shopping trip.
The ICM survey found even more ways to leverage your couponing program.
In the area of coupon technology, 58% of consumers responding to the ICOM survey see their coupon use increasing if they could download a coupon from the Internet and have it automatically connected to an electronically swiped frequent shopper card.
Major grocery store chains, like Kroger are currently testing these programs. If successful we should see more of them in the future.
In the meantime, consider posting coupons on your company website. Include copy referring to your couponing program in press releases and test various means of distributing coupons for your products.
A more technologically savvy consumer combined with an economic downturn makes this the perfect time to perfect your couponing strategy.
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How to Write a Press Release In The Internet Age
How To Package A Green Product
Target Practice - Finding The Right Green Consumer
Photo credit: ninjapoodles at Flickr http://www.flickr.com/photos/ninjapoodles/ under a Creative Commons license.
