While the benefits of coupon 'extreme stacking' are traditionally geared to consumers, it can also help retailers understand consumer behavior and better plan their marketing initiatives.
This new trend combines multiple deals, promotions and rewards in order to save the most amount of money and earn the greatest rewards possible on purchases.
Here are couple of ways in which extreme stacking influences the way online retailers should tailor their marketing strategy and payment options for consumers.
Gain Customer Loyalty. Though some retailers try to limit the amount of coupons that can be used per purchases, they also understand that when shoppers can utilize deals for maximum savings, it encourages them to continue shopping with that retailer.
Coupons, store loyalty rewards and cash back or rebates can be used to attract and keep customers. In fact, about 91% of coupon redeemers say that they will make repeat visits to a retailer after being offered a coupon. Frugal shoppers will remember where they were able to get the best deal and will go to those retailers first when looking to make new purchases. Once a retailer has gained the attention of these new customers, it can customize promotions to encourage more purchases.
Encourage Bulk Buys. If a consumer finds a way to use multiple discounts and rewards on one purchase, it can encourage them to spend more because they are saving more in the long run. Studies show that with a discount or promotion, new customers spend about 3.1 times more and existing customers spend about 2.6 times more per purchase. If shoppers think they are getting the best value out of their dollar, they are likely to want to make the most of it and buy more items.
Mobile Marketing is Key. According to a Forrester study, U.S. consumers were estimated to increase dollar spending from 2012 through 2016 by 45%. The best deals are not only found online, but also through mobile applications. Instead of clipping coupons that come in the mail, consumers are keeping track of the deals and promotions that they can find through technology. This means that retailers must be available both online and on mobile platforms and target their promotions to each of those platforms. In addition, available payment options are increasingly becoming more than just over-the-counter and online; more and more retailers have apps that allow mobile payments, creating an easier checkout process. With consumers going straight to the internet and mobile applications to stack up on deals, retailers need to make sure they are supporting the way their customers want to find coupons and deals.
According to Market Track, 83% of shoppers have made unplanned purchases based on promotions or coupons that were made available. Offering multiple ways for shoppers to get discounts and rewards will not only benefit the consume, it can also help retailers looking to build their customer base. Retailers that evolve their strategies to match these new consumer behaviors will ultimately help their brand and profits in the long run.
Erin Warren is senior vice president of marketing for Splender.