To coupon or not to coupon – that is the question.

In driving your discount promotion campaign instore to achieve incremental sales from non-users of your brand – which POP method really works best?

Better yet, in putting your brand on “Special”, should one reduce the price across the board using Shelf Price Reductions or should one dispense coupons at point of purchase?

Again, its not so much what we, as marketers think will work best – it’s what shoppers perceive to be effective in talking to them about the latest deal or special.

According to research conducted by research agency, Markinor (September 2007):

80% of shoppers find coupons effective in influencing them to buy brands they did NOT intend to buy.

60% of shoppers are likely to switch brands and purchase those promoted as discounted offerings as a result of a coupon promotion.

What about Shelf Price Reductions? Are they not just as effective?

Well, Shelf price reductions talk mostly to shoppers who were going to buy the product irrespective of the discount. So, any incremental purchases there – are likely to come from these loyal one’s pantry loading.

Couponing on the other hand enables a 2-pronged effective advertising strategy of brand switching as well as awareness of brand at point of purchase in that:

Firstly couponing encourages 60% of brand switching purchases to your coupon-promoted brand.

Secondly, a shopper merely looking at your brand increases consideration of your brand by 30 – 120% and so shoppers get to be made aware of your brand visually, given the distinct packaging of your product on the couponed pop message on shelf.

So, with 86% of shoppers stating that coupons encourage them to buy promoted brands and 64% of shoppers citing that coupons help them buy brands they could not afford ….when is your next coupon promotion?