Forecasting coupon redemption is a completely different exercise today than it was just a few short years ago. The economic downturn, the advent of technology and a new “deal sharing” mindset among consumers have combined to drive up coupon redemption 35 percent over the last five years.
Even with this level of redemption activity – and in the face of data highlighting the plurality of redemption drivers – many marketers are taking a chance and responding to increasing competition by dropping high-value offers. Promising that all-important sales lift, these promotional events are, all too often, delivering much higher than expected redemption as well.
Why? Because consumers are watching, listening and redeeming. They’re not dissuaded by shorter redemption periods or increased purchase requirements. They’re sharing, stacking and taking no prisoners at checkout. But, that doesn’t have to be a bad thing. In fact, this new promotional sensitivity can work in your favor. But, it requires effectively and accurately planning for coupon redemption in a volatile promotion marketplace.
How? By following your customers’ lead! Watch. Listen. What is your data telling you? (Do you know?) Communicate with your trading partners. Share your plans. Coordinate activity. Understand everything that’s going on around you. If you need help developing that understanding – creating that “360° perspective” – we can help.