Do Coupon Codes Work? 10 Statistics to Consider for Your Business
Does the idea of a coupon for a restaurant or hotel sound a little old-fashioned to you?
Think again! As we’re about to demonstrate, coupons are alive and well. More importantly, they’re enabling thousands of businesses to reach wider audiences, increase brand advocacy, drive loyalty and finally take control of the buying journey.
Despite this, they’re not for every hospitality business - we get that. Here are some pros and cons of coupon codes in this industry.
Coupon code stats and facts
The internet is full of fascinating statistics on coupon codes. From the number that are actively used to the way in which they influence purchasing decisions, we’ve put together our favourites in this handy little infographic.
Pros of coupon codes for restaurants and hotels
Coupon codes offer a number of benefits for hospitality businesses:
- They’ll help you find new customers. And, as we all know, finding new customers is an expensive business. Why not leverage the desire people have to save money in order to find them cost effectively?
- They differentiate. Come up with a unique, eye-catching coupon scheme and you’ll put yourself a few steps ahead of the competition.
- They reduce advertising costs. Coupons don’t cost much to produce. In fact, you might even find the facility to manage them built directly into your POS. The only investment will be your time in creating social posts or in-house flyers.
Cons of coupon codes for restaurants and hotels
Concerned that a coupon scheme might not be for your business? You could have a point.
- They cost money. Sure, you might reduce advertising costs, but a decent coupon scheme needs to look good, and that might call on design resources you simply can’t stretch to at the moment.
- Customers can become a bit expectant. The more you issue coupon codes, the more you become ‘that’ restaurant, and the more your customers will wait for them to arrive, rather than occasionally paying full price.
- They’ll reduce your profits. There’s no getting away from the fact coupon codes shave off some of your profit. Is your business in a healthy enough state to cope with that?
Our favourite coupon code statistics for 2020
1. 90% of consumers now actively use coupons (source) If you’ve ever created a coupon scheme, you’d be forgiven for thinking that those codes are simply thrust into the ether in the blind hope they’ll be used. Clearly, that isn’t the case - providing you get the deal right.
2. 86.9% of Brits and 95.4% of Americans have used a discount code at least once (source) Even if coupon codes don’t become regular shopping habits for every consumer, these stats demonstrate that they have an awful lot of mileage in one-time usage.
3. Digital coupon redemptions are set to total $91 billion by 2022 (source) This is a cross-industry statistic, but one that demonstrates how much consumer value and loyalty can lie in coupon codes.
4. 32% of consumers prefer coupon codes on their smartphones (source) We’re living in a mobile-first world now, and with most people using their smartphones as a primary computer device, this statistic should come as little surprise.
5. 63% of people said they’d use more coupons if they were available (source) This suggests there aren’t enough coupon codes available. Is your hospitality business failing to give both existing and potential customers what they want in the form of discounts?
6. A quarter of millennials spend more than 4 hours a week looking for deals (source) That’s a fair amount of time, and with the millennial generation the biggest on the planet, an awful lot of combined time. Is your business likely to appear during their research?
7. 82% of digital coupons are redeemed within a week or less (source) Coupon codes clearly have a relatively short shelf life, but that’s a good thing; how many other forms of loyalty or discounting have such an immediate impact on shopping habits?
8. Most shoppers feel frustrated with themselves when they miss out on making a modest saving online (source) Read that again: a modest saving. This demonstrates that people aren’t necessarily looking for huge savings with coupon codes; a gesture is all they need to feel an achievement has been made.
9. 83% of consumers say coupons change their buying behaviour (source) This is a big one. The customer has always been king, but their modern buying journey in hospitality has become increasingly complex. Imagine being able to control that a little more with a coupon scheme.
10. People who use coupons spend 24% than regular consumers (source) What more reason do you need to start adding coupon codes to your marketing strategy as a hotel or restaurant?
Coupon codes should never be seen as a necessary evil in hospitality. As the statistics above hopefully demonstrate, they offer a unique opportunity to grab lots more engagement with your audience.
As discounting schemes go, coupons are recognised, trusted and offer a great way to build brand loyalty. Have you got any in your locker?