How should retailers handle couponing?
In response to The Great Recession, coupons became one of the most popular retail customer trends at the time. Although the economy is gaining traction, many people still exercise this practice to scale back on basic expenses and purchase their favorite products at a discount price.
Those who are heavily engaged in couponing pay attention to timing, ways to double up on discounts and loyalty programs. Such a practice drives item liquidation and can be a boon to merchants looking to get excess inventory out of warehouses and in the hands of consumers.
Merging trends
Mobile commerce is one of the most popular consumer shopping practices to date. According to Mobile World Live, the success of an e-commerce operation partly depends on how well a website integrates with smartphone and tablet technology. Usability isn't the only important factor – merchants need to make sure their mobile suites contain the same offers and features a shopper would find if they were to visit their online platforms through a desktop.
For example, an organization could leverage retail point of sale software that allows consumers to take pictures of physical coupons and load them onto the website from anywhere, anytime. However, the digital age has created an environment in which merchants can now send emails to loyal customers containing discount offers. Synchronizing these promotions with a consumer's online account will enhance the ability to finalize transactions on his or her smartphone. Such a tactic will also give the sanctioning retailer appeal over competitors that do not provide people with the same level of service.
Scrutinizing behavior
James Bickers, a contributor to Retail Customer Experience, noted that merchandisers should make sure that couponing doesn't get ahead of them. He cited an instance in which a woman received $90 worth of goods from a pharmacy for $5. He even maintained that some coupon pushers are so good at what they do, they actually get the bill down to a negative number.
Bickers pointed to a major flaw in many retailers' POS software. If a register can't accurately process the discounts logged into a seller's system, then it could result in grievous losses. Ceasing to offer consumers the chance to save money at the till isn't the answer, but getting a better handle on technology is imperative if merchandisers want to turn a profit. Investing in the appropriate software shouldn't be treated as an option, but as a priority.
