Promotions help determine where a customer shops and what they buy, according to a recent study by RetailMeNot, a marketplace for digital offers. The study, which was conducted using Google Consumer Surveys (and other third-party research) unveils several stages of the consumer shopping journey and demonstrates how promotions have a significant impact at each stage along the way.
The study additionally reveals how retailers are able to drive results by leveraging promotions and distributing them via marketing channels, such as RetailMeNot.
"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, senior vice president of retail and brand solutions at RetailMeNot. "By leveraging RetailMeNot's marketplace platform, retailers win by increasing customer loyalty, building brand affinity and driving incremental sales both online and in-store."
More specifically, the report's findings revealed the following effects promotions have on consumers:
- Promotions trigger both in-store and online purchases
- Promotions have an impact on consumers' decisions on where to shop and what to buy
- Promotions help reduce shopping cart abandonment
- Post-purchase, promotions positively affect loyalty, brand advocacy and the likelihood of future purchases
- Promotions drive incremental revenue for retailers
Of those who are deal seekers, promotions triggered in-store purchases for 91% of shoppers. Similarly, 89% of deal seekers said a promotion triggered an online purchase.
Of online shoppers who use promotions, 82% sometimes, frequently or always consider promotions when planning what items to buy; and 81% sometimes, frequently or always consider promotions when planning where to shop.
Additionally, consumers reported using promotions to plan purchases in advance. Nearly 74% of in-store shoppers and 66% 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.
Consumers most often abandon shopping carts due to cost-related reasons. Survey data shows that 78% of cart abandoners have sometimes, frequently or always looked for a promotion before abandoning their cart over the past year, and 68% have sometimes, frequently or always used promotions to return to their abandoned cart and complete their purchase.
Sixty-eight percent of consumers are more likely to be loyal to a brand that offers online coupons or promotion codes. Sixty-eight percent are likely to tell a friend about a company that uses online coupons or promotion codes; and 50% are more likely to buy a product or service at full price later from a company that offers online coupons or promotion codes.
Retailers have much to gain from the steady demand for promotions by consumers. Based on the analysis of a third-party, one department store retailer with thousands of locations across the United States found that on transactions involving a RetailMeNot coupon, 18% of total coupon sales were incremental. Additionally, RetailMeNot customers spent and visited the retailer, on average, 30% more than non-RetailMeNot customers. The same retailer also found that customers who go in store for the first time with a RetailMeNot coupon increase their spend over the subsequent six months by 52%.
The full study is available here.
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