Over the last few years the rise in the use of sales promotion in the form of vouchers and discount clubs, has led to a culture of consumers not leaving the home for a meal/ day trip without one. Because the vouchers and discount codes accompany so much cash into the tills, it is as if the voucher has become a form of legal tender.
In order to compete for customer retention is it therefore essential that retailers now adopt sales promotion techniques and trade/deal with vouchers plus exclusive discounts, even in the run up to Christmas?
Companies use sales promotion by offering discounts, and accept them against payment for a number of products and services. The rise in the voucher is not only specific to the people who you would traditionally associate with bargain hunting, but most people now have used a discount in some form or other. Nielsen online reported that 9.8 million Britons used a coupon or reward site in 2008. In 2008 coupon and reward websites were the second fastest growing UK online sector according to YouGov. And most tellingly of all, 48% of shoppers were more likely to use retailers who offered voucher codes (Nov 2008).
Consumers are now programmed to look for discounts, if one shop isn’t offering a discount then the next one will be, so it is therefore not surprising that retailers are using sales promotion tactics by offering vouchers or exclusive discounts to members of loyalty and membership programmes or discount clubs. By doing this retailers are not only bolstering their presence on the high street but encouraging increased redemption online as well. And as internet shopping becomes the norm for many people, it’s increasingly important for retailers to establish their brand online – where it is even more important to be competitively priced, as other retailers are only one click away.
Contact Us if you are interested sales promotion for your business. We can discuss rewards for your consumers or an exclusive discount to offer members of a loyalty and membership programme or discount club.
