How do coupons actually affect our buying behaviour? As part of our insight series “Clear Insights”, we carried out an extensive study in ICA stores to answer exactly that question. By testing 60 different coupons from eight brands, we have identified what really works when it comes to increasing sales and redemption.
Many people believe that a bigger discount always leads to more products sold, but our study shows it isn’t that simple. A bigger discount increased redemption but had only a marginal effect on sales. A smaller discount, on the other hand, can be a cost-effective way to maintain sales without having to subsidise the products too heavily.
Coupons that require the customer to buy several units, e.g. “Buy 2, get SEK 10 off”, reduce redemption but drive volume sales. For some products, such as food with a short shelf life, this can be a challenge. But for products that are often bought in multipacks, it can be a profitable strategy.
Multi-coupons, where customers can choose between different purchase requirements themselves, proved to be a winner. They generated both higher sales and higher redemption. A likely explanation? They are often larger and more visible, which means more customers notice them in store.
Many store chains use percentage discounts in their offers, but our study shows that customers prefer discounts in kronor. Percentages can be harder to interpret, and a price cut of “15%” doesn’t always feel as concrete as “SEK 5 off”.
Want to know more? Email sales@clearon.se for insights into how coupons can be used to drive sales!
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