Let's all get 'Coupon High' tonight
More than a Good Deal: How Your Business Can Benefit from a 'Coupon High'
Coupons have been around since 1887, enticing customers to try new products and brands with the promise of saving a little money.
But according to research by Indiana University, “between 81 percent and 96 percent of customers use coupons, while the average coupon user spends roughly 24 percent more than non-coupon users.”
“According to a study authored by Dr. Paul J. Zak, a Professor of Neuroeconomics at Claremont Graduate University, consumers who are given coupons see a 38 percent increase in their oxytocin levels – the hormone associated with happiness. They also enjoy less stress, with respiration rates falling 32 percent, heart rates dropping 5 percent, and sweat levels on the palms decreasing 20-times over.”
This suggests, according to Dr. Zak, “that not only are people who get a coupon happier, less stressed and experience less anxiety, but also that getting a coupon—as hard as it is to believe—is physically shown to be more enjoyable than getting a gift.”
This “coupon high,” or the happiness people feel from receiving a discount, combined with the urgency of knowing that the discount is only good for a limited time, encourages customers to make spending choices they otherwise wouldn’t. Which means your restaurant can actually earn more by offering a modest discount.
“They may not be sexy or particularly innovative, but the data and science show that marketers who use coupons are more likely to reach their target audience, move them to action, and generate sustainable streams of revenue,” researchers from Indiana University say.
“Coupons are a great way to incentivize consumers who have never tried your restaurant to come in and dine or place an order,” the business site Rewards Network advises. “It gets them in the door so that they can taste your food for themselves and produce a lasting memory. And if the coupon is specifically for one of your most popular dishes, that means your guest is getting to try the best of the best first.”
Digital coupons, like those offered on Forage, help diners associate your brand with their increased levels of oxytocin, even encouraging repeat business. Reaching happy and relaxed customers, that are inclined to spend more per visit, is exactly how your business can benefit from a 'Coupon High.'