Study Shows Promotions Drive Consumer Behavior at All Stages

Peter Roesler, President - Web Marketing Pros

By Peter Roesler

President, Web Marketing Pros

Advances in technology have given business owners new ways to find customers, new ways to sell products online, and new ways to advertise their services. In light of the fancy technology, it’s sometime easy to forget that simple, old tactics are still effective. Recently, RetailMeNot released a study based on multiple data sources that showed just how valuable promotions remain even in the digital age.

RetailMeNot is a company that has a website and an app that allows people to get deals at certain businesses or websites. Therefore, the company has a lot of data on how promotions affect consumer behavior on the sites that use RetailMeNot or in-store location that accept RetailMeNot coupons. However, this report includes data from other sources, such as data from Google Consumer Services. The data showed that promotions have a huge impact on consumer behavior at every stage of the shopping process.

“Research continues to reiterate the positive impact that promotions have on both consumers’ decision-making process when considering a purchase and in helping retailers achieve their revenue goals,” said Michael Jones, SVP of Retail and Brand Solutions at RetailMeNot, Inc, in a press release. He went on to say that “retailers win by increasing customer loyalty, building brand affinity and driving incremental sales both online and in-store.”

RetailMeNot Inc The Impact of Promotions  InfographicTo start with the obvious, the report showed that just about everyone likes a good deal. According to the survey, of those who are deal seekers, promotions triggered in-store purchases for 91 percent of shoppers. Similarly, 89 percent of deal seekers said a promotion triggered an online purchase. This echoes other recent research that showed mobile coupons can drive local and online sales.

Before consumers make it to a retail location or website, they have often looked up potential coupons or specials for the items they are shopping for. Nearly three out of four (74 percent) in-store shoppers and two out of three (66 percent) of online shoppers said promotions were used to help plan a trip to the store several hours, days, weeks or more prior to making a purchase.

The level of competition on the internet is such that there is almost always someone running a special on a given item at a certain time, which means online shoppers are more likely to search for deals before visiting a site. The study reported that for online shoppers who use promotions, 82 percent said they sometimes, frequently or always consider promotions when planning what items to buy, and 81 percent said they sometimes, frequently or always consider promotions when planning where to shop.

Promotions can affect consumer behavior in less obvious ways. Data  from the survey showed that 78 percent of cart abandoners have looked for a promotion before abandoning their cart over the past year, and that 68 percent have used promotions to return to their abandoned cart and complete their purchase.

Deals and promotions also build customer loyalty. According to RetailMeNot, 68 percent of consumers are more likely to be loyal to a brand that offers online coupons or promotion codes and just as many are likely to tell a friend about a company that uses online coupons or promotion codes. And business owners should take note that 50 percent of consumers are more likely to buy a product or service at full price later from a company that offers online coupons or promotion codes.

The RetailMeNot study is full of interesting data and its worth checking out in it’s entirety. However, the main point is clear, promotions drive consumer behavior at every point of the buying process. By offering promotions, business owners can more effectively attract customers, generate more sales, and build customer loyalty. These are benefits that no business owner or marketer should be willing to pass up.

For more data on the value of coupons, read this article on why digital coupons are a must for local businesses.

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