Macy's is running a fun event this week: shoppers place their Lucky Star behind Macy's red cellophane Lucky Star, located in aisle signs all over the store, to reveal their discount. Flyers are available at each store -- YES! You want to lose customers? Tell them they can't have one of the coupons everyone else is using.Our Lucky Star revealed an extra 15 percent discount. We have to admit that we perused the stack of flyers on the counter in the deserted housewares department. Each of the 25 we looked through revealed a discount of 15 percent. If we were running this sale, we'd mix it up a little more.
Case in point: the retailer who ran a similar sale with discounts of 10 to 50 percent. The majority of the discount cards revealed just 10 percent off. The store was very busy that day and shoppers were comparing discounts.
"How much did you get?"
"10 percent."
"Yeah. Me, too."
"I only got 10 percent" became a theme and customers were angry. So if you are going to run a sale like this here's a customer-pleasing hint: Advertise discounts of 10 -- 50 percent off but make the majority of the discounts 15 percent. Your customers perception of the sale will be better because they did not get the smallest discount.
Events like this and coupon sales will be more important than ever this year as consumers look to save money wherever thy can. Consider the results if this new study on coupon usage by ICOM Information Communications, a marketing company:
* Of the 1,529 U.S respondents 45 percent are “much more likely” to use coupons during a coming recession, while 22 percent are “somewhat more likely.
* Geographically, 70% of Midwesterners said they are much more likely or somewhat more likely to use coupons in a recession, versus 69% of Westerners, 64% of Northeasterners and 62% of Southerners.
* Income didn’t make a significant difference to respondents, with 68% of those earning less than $50,000 a year saying they are much more likely or somewhat more likely to use coupons in a recession, compared to 67% for those earning more than $50,000.
* Broken down by age, 71% of consumers in the 18-34 year-old age bracket said they are much more likely or somewhat more likely to use coupons in a recession. That compares to 68% in the 35-54 year-old bracket and 63% among those 55 years and above.
* In the area of coupon technology, 58% of consumers responding to the ICOM survey see their coupon use increasing if they could download a coupon from the Internet and have it automatically connected to an electronically swiped frequent shopper card.
Click here to learn more about the ICOM study:
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/04-02-2008/0004785588&EDATE=
