Coupons and Customer Loyalty Relations: A 2023 Statistical Overview

Inspiring brand loyalty is the ultimate goal for any business. Experts often apply the Pareto Principle to demonstrate that 80% of sales often come from 20% of consumers. While this may not be a completely accurate figure, there’s no doubt customer retention has its perks.

According to Bain & Company, a 5% increase in customer retention often results in at least a 25% increase in profit. Businesses employ a number of tools to keep valuable consumers around. Among these tools, coupons have emerged as an extremely effective option.

eCoupons and promo codes are usually seen as marketing instruments that attract first-time buyers. But the latest stats gathered by ClothingRIC show they instill loyalty among old consumers as well.

Coupons & Customer Loyalty The Statistical Relation

Discounts and coupon codes can be used to make customers feel valued. They help foster a connection between the business and its clientele. Statistics show coupon codes work in retaining customers.

91% Coupon redeemers say they will revisit a retailer after receiving a coupon. (GAP)
84% Consumers say they will remain devoted to a brand that offers them a loyalty program. (Nielson)
58.7% Internet users believe earning loyalty points, coupons and rewards are one of the valued aspects of shopping online. (eMarketers)
87% American are willing to have some details of their online activity tracked in order to receive personalized rewards and promo codes (Bond Loyalty Report).
61% Consumers believe surprise gifts and offers are the best way a brand can interact with them (AP news).
65% People admit that receiving rewards in the form of free products or coupon codes impact the frequency of their purchase. (Annex Cloud)

Are Customers Willing to Switch Brands for a Coupon?

Some of the latest customer retention statistics show the importance of loyalty programs and coupons.

77% of consumers are likely to stay with a brand that offers loyalty programs. (Bond Brand Loyalty Report)
54% of customers will stop shopping from brands if it doesn’t provide relevant coupons. (Fundera)
70% of customers are more likely to recommend a brand that has a good loyalty program . (Bond Brand Loyalty Report)

77%

70%

54%

Coupons Are An Effective Tools of Marketing

“In recent years, coupon codes have become a staple of marketing and customer engagement” says Julia Markle, senior editor of ClothingRIC. Some of the recent data suggest their value in retail is undeniable.

90% of consumers use coupons in one way or another. (Valassis)
83% of shoppers say coupons can directly shape their buying behavior and make them more biased towards a particular brand. (Inmar)
People who use coupons spend 24% more than non-coupon users. (Blippr).
$91 billion coupons are expected to be redeemed by 2022 (Juniper Research).
Digital promo codes have become more widely used than coupon-clipping due to the on-going pandemic (WSJ).
70% of people who open a company’s email are in search of a deal or coupon code. (Campaign Monitor).

Instant Coupons Make Customers Feel Rewarded

Based on a YouGov survey of 3,350 American consumers, instant coupons are third most effective in making the customers feel rewarded after cash backs and birthday gifts. 30 % of consumers feel ‘very rewarded’ while 49% feel ‘little rewarded’ by the gesture.

Very Rewarded

A Little Rewarded

Not Rewarded

Cash Back

31%52%17%

Birthday Gifts

38%42%20%

Instant Coupons

30%49%21%

Free Samples

32%47%21%

Wallet Punch Cards

17%54%29%

Invitations to Special Events

17%44%39%

Tiered Programs

9%40%51%

Merchant Credit Cards

11%37%52%

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Do Deals & Discounts Make Consumers Brand Loyal?

What does it take to keep a customer around? According to Yotpo’s State of Customer Loyalty report 2018, 55% of shoppers value product quality above everything else while 25% of buyers can be attracted solely through good deals and discounts.

What makes you loyals to a brand?

The Product 55.3%

Great Deals 25.7%

Customer Service 7.1%

Convenience 5.7%

Other 3.2%

Cause or Charity 1.8%

It's Popular 1.2%

What Channels Do Marketers Use to Promote Offers?

While coupons are often the weapon of choice to realize this goal, marketers utilize different mediums to reach out to potential loyal consumers.
A survey of U.S retail professionals by Emarsys shows which channels are prioritized for inspiring loyalty among customers.

80%

44%

36%

11%

Email Marketing 80% use email marketing for retention.

Social Media 44% believe social media drives retention.

Organic Search 36% prioritize the organic search for retention

Mobile Marketing 11% maintain that mobile marketing is the primary driver for retention

Market Places 8% feel marketplaces drive retention

Are Mobile Coupons Efficient In Building Loyalty?

Mobile coupons have become an important part of eCommerce marketing in recent years. Latest stats gathered by ClothingRIC research team shows businesses who are not investing in this mode of promotion might be missing out.
6 in 10 American smartphone users subscribed to mobile messages to receive deals. (TapOnit)
44% customers between 18-34 years actively search for coupons on their cell phones while shopping online. (Mobile Payments Today)
57% members of the loyalty program want to receive rewards on their mobile device (AccessDevelopment).

Mobile Coupons Efficient In Building Loyalty

Mobile coupons have become an important part of eCommerce marketing in recent years. Latest stats gathered by
ClothingRIC research team shows businesses who are not investing in this mode of promotion might be missing out.

Smartphone
Users 6 in 10

18-34years
actively 44%

receive rewards
mobile device 57%

Business Need Loyal Customers

“Customer retention requires low investment but has a high return.” explains Business Blogger Alex Bill”.
“Turning buyers to customers that prefer your brand over others is a dream of any marketer” he explains.

Loyalty statistics from different studies show just how important frequent buyers are for businesses.

Probability of selling to existing customers is 60-70% while the same is 5-20% for new users. (Altfeld)
70% of consumers are likely to recommend a brand that has a good loyalty program (Bond).
Satisfied and loyal customers share their positive experience with 11 different individuals. (Business Wire)
The cost of acquiring new customers is often 6 to 7 times greater than the cost of retaining an old buyer (Signal Mind).
Retained customers spend 33% more than new buyers on average. (Small Biz Trends)
65% of profit for a company comes from existing customers. (Small Biz Trends)

Which Generation is Most Brand Loyal?

Marketers should take it as welcome news that the young generation of shoppers is extremely loyal.
In a survey published by A. Guttmann, it was found that Millennials (24-39 years) are the most loyal generation as 60% tend to stick to a brand they like.

I am a brand conciouse person

Once I find a brand I like I tend to stick to it

0 10% 20% 30% 40% 50% 60% 70%

Gen Z (8-23 years)

Millennials (24-39 years)

Meanwhile, Gen Z (8-23 years) are right behind their Millennial counterparts with 55% brand loyalty. Other statistics show that Generation X and Baby Boomer aren’t as brand-savvy or loyal to particular products.

Conclusion

In today’s ultra-competitive environment, loyal customers are vital for any business to survive. However, it’s not just the quality of the product that can inspire devotion from thousands of customers.

On most occasions, consumers are looking to be valued by a brand. Giving exclusive coupons to regular buyers is a way of showing them you appreciate their dedication. Statistics accumulated above demonstrate that it’s possible to create a loyal customer-base through strategic discount marketing.

Cultivating relationships is good for business. Coupons are an important part of this entire process.