If you’re not offering coupons to your customers, you are keeping them down. Well, maybe not exactly. But, they could be noticeably happier and more relaxed with a coupon in their hand. And, if you were to give them the coupon, they would associate your brand with that pleasure.
New research conducted by Dr. Paul Zak, professor of Neuroeconomics at Claremont University shows the following:
“oxytocin, a hormone that is directly related to love and happiness, spikes when people receive a coupon. And, in fact, increases more than when people receive a gift. The data shows that coupons make consumers happier and more relaxed.”
This is pretty intriguing news for marketers using incentives to influence buyer behavior. It goes deeper than logic alone, and a consumer’s natural instinct to try to maximize their utility. The study’s findings uncover more about the emotional state of a shopper, which can be helpful in identifying additional opportunities to market to them, and what kind of message they’re likely to respond to.
What does a happy shopper mean?
Yes, a customer will see $1.50 off of a $5 item as simply a way to save 30% – utility maximized. But, those feelings many are shown to exhibit when given a coupon are where consumer understanding can lead to additional sales. A coupon is a call to action. It’s a reason for a shopper to try something new, buy more of a product than they may have otherwise, or (now) share branded content (coupons, in this case) with friends on a social network like Facebook. What other more compelling offers could you come up with if it was known that the offer alone puts customers in a better mood to shop?
The implications of the happy couponers go well beyond their willingness to redeem an offer and feel good doing it. We have offered the data detailing the marked increase in redemption rates from online (and, specifically social) coupons over traditional distribution means. It’s a huge jump. The opportunity in the social space for brands to reach and nurture customers is unmatched. In fact, it is through social media that the neurological effects of a coupon can be fully expressed, and the resulting actions can benefit brand and buyer alike.
For buyers: The now-happy and relaxed social media fan has a great deal in their possession, and both a reason and the means to share their good fortune with others. Making the coupon social allows customers to garner the praise and admiration of their friends by sharing a coupon they may have missed otherwise. The line of communication they have opened with a brand through their social profile allows the customer to receive more savings and exclusive offers in the future, helping them to feel recognized and valued by the brand.
For brands: When offering a coupon through a branded social media page, the marketer can better control the interaction. Well-built third-party apps can collect data for future marketing and a means of direct follow-up. Coupon claims can be capped, and the limit increased if need be. Automated reactions to customer actions can be implemented to increase responsiveness and encourage loyalty. Making the coupon social allows customers to become advocates right then and there by effectively endorsing a brand as they share the coupon. The happiness they feel inside can show in the post they share, oftentimes affecting the mood of the recipient and their impression of the brand as well.
The missing link for uncovering the true potential of the coupon is social. Here is proof that coupons make shoppers as happy as affection from a loved one, and as relaxed as a day at the beach (more or less). They want to buy. They feel good about the brand. Add to this easy sharing with friends and valuable data collection, and you have an opportunity to create recurring revenue unlike any other.
CoupSmart is a social marketing system that creates a measurable revenue stream from fan pages. Want to find out more? Click Here
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