To provide 2-3 best practices in couponing around the COVID-19 crisis for the CPG industry. For each, we will provide an overview of what the practice is, how we determined that it is the best practice, and examples of brands that have successfully implemented the practice.
Our research on couponing brand best practices in the CPG industry revealed insights. Here are the key pieces of information we found:
Couponing Brand Best Practices in the CPG Industry
- One best practice for couponing that is being used by brands in the CPG industry during the COVID-19 crisis is digital couponing. Digital coupons can be printed or loaded electronically onto loyalty cards and do not require mobile use. Making coupons easily accessible though social media, coupon websites or corporate and manufacturer websites can act as magnets for brands and set a CPG brand apart with easily accessible digital coupons and discounts that can be an effective revenue driver.
- According to a Valassis Coupon Intelligence Report, 92% of survey respondents use coupons, with 45% using them always or often and 86% asserting that coupons can influence their purchasing decisions. Of that 92%, 75% use digital discounts, which may be found on coupon websites, manufacturer and company websites.
- Another best practice for couponing that is being by used by brands in the CPG industry during the COVID-19 crisis is to refocus couponing on customer loyalty and retention rather than on acquiring new customers. According to a Nielson study, 20% of loyal customers for a brand represent 80% of sales. Brands are encouraged to balance customer retention with the demand for new customers by segmenting high-value customers with targeted couponing.
- Grocery digital coupon programs have become more important than ever during COVID-19. Digital coupon redemption in March increased 56.5% year over year and provides a growing opportunity for CPGs to strengthen loyalty among customers.
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