Do you have an interest in boosting sales and revenues for your business through coupons? As a business owner or marketer, you should be. Unfortunately, many people in your situation don’t know what drives customers to spend more whenever there is a sale. In fact, research shows that customers tend to impulse buy more when there’s a sale.

But, if you can get to understand the visitor psychology behind how consumers purchase products or services, you stand a better chance of improving your sales and promotional efforts, as well as the demand for your products or services.

There are several reasons why businesses or marketers use coupons, discount sales, and other promotional strategies. For starters, companies that understand the psychology behind discount offers build a positive brand image, bring happiness to existing and new customers, and increase their long-term sales and profitability. Perhaps you have entertained the thought of using coupons to boost sales, here are some facts you should know about visitor psychology and coupons.

People Like to Get Value for their Money

The visitor psychology behind sales offers plays into the essential truths about consumer behavior; consumers like to save money. Regardless of whether the savings amount to a dollar, that is value for the consumer—value that the consumer couldn’t get prior to using the coupon. Consider an outlet that lists all items at retail price but has a sale sign on each rack.

You will be surprised to find that the “sale” price at times is the normal price at other outlets, but when it is presented as a sales offer, it promotes value and gives customers the idea that they are getting a real bargain. In many cases, customers tend to impulse buy more when there’s a sale due to the perceived value they hope to get.

‘Coupons and sales on a site cause an increase in impulse buys, even if the discount isn’t much.’—Plus Voucher Code.

Discounts Minimize the Tendency to Search

Research has established that offering a discount or a coupon has a significant tendency to discourage consumers from looking for other offers. The reason for this behavior is that discount offers create a sense of urgency to buy, which dissuades customers from searching for other options.

It is worth noting that this effect on consumer behavior is especially important for retail businesses whereby price comparison before shopping is rampant due to the broad variety of competitors.

‘In the absence of a special deal, customers would otherwise abandon their carts…That is because 62 percent of consumers invest two or more hours each week scouring the web for promotions.’—Huffington Post

Discount Offers Create a Sense of Urgency

A discount or coupon tends to entice customers to make a purchase sooner. This behavior is often attributed to the notion of scarcity, in the sense that consumers know that discounts are not always easy to come by. Urgency is a vital aspect in pushing consumers past the purchasing edge and can be leveraged using marketing communications.

For instance, including “Last Chance” or “Final Day Offer” messages helps to eliminate purchase hesitations that might be holding shoppers back. This sense of urgency is another reason why customers tend to buy more when there’s a sale as they may see it as an opportunity to save more on bulk purchases.

What Can a Business do to Make the Most out of Coupons?

Now that as a marketer or business owner you have learned a few facts about the visitor psychology behind discounts and coupons, what can you do to leverage the power to boost sales and revenues?

Make the Offer Relevant to the Type of Customer

The more relevant the offer is designed, the better the customers’ experience and ultimately, customer engagement. For instance, a retail outlet like a grocery store can create coupons based on a customer’s previous purchases. You can use previous customer purchase data to customize offers to individual customers.

‘Coupons act as a type of incentive. For example, if customers can only get the coupon by writing a review, then once they have the coupon they’re more likely to shop with you again, boosting loyalty.’—Podium

Use Scarcity to Generate Urgency

“Hurry While Stocks Last” is a common marketing communications trick you can use. Adding a coupon or discount offer will only further make the deal sweeter. Look for ways to create a sense of urgency and accompany it with a discount coupon offer.

‘Free shipping is among those e-commerce promotion mantras that always work. After all, who would say no to merchandise that comes without transportation costs? Keep in mind that free shipping best works when offered for a limited period.’—Customer Think

In conclusion, tough economic times and the popularity of coupons play well into the hands of marketers and business owners seeking to boost sales and revenues through discount offers and coupons. Offering coupons and discount offers plays into the psychology of the consumers by creating value and a sense of urgency. It also dissuades customers from looking for other alternatives. Consequently, marketers and business can tap into consumer behavior to craft more effective promotional strategies.