Given the current economic crisis, people are looking for ways to pinch pennies that they weren’t doing in the past few years. Coupons (like from ads placed in your local newspaper) seem to be clipped and collected from retailers much more often in recessions, and with the advances in technology “clipping coupons” is as easy and pressing “Print.”

So who’s winning from clipping coupons, retailers, consumers, or both? In short, the answer is both.

Consumers are winners simply because they get the discounted price, mostly at large chains and not their local businesses and restaurants, but discounts nonetheless. According to Jessica Dolcourt of CNET, one of the largest frustrations of consumers is not receiving coupons from their local businesses.

Retailers are winners too, because they capture a larger buyer base than they normally would with the coupons. These new consumers may not be loyal in the future, but they are paying customers and can be added to a mailing list or other type of campaign for future marketing. Big companies are more likely to provide these coupons because they have generally are able to provide lower prices without destroying their profit margin, unlike small businesses, which struggle to compete with these giants.

ABI research has shown that 63 percent of consumers find coupons as the most valuable form of mobile marketing, most likely because it’s the kind of message that saves them money, and doesn’t just want to take it. Starbucks Mexico recently deployed a coupon campaign with 2D barcodes. Consumers were encouraged to text a certain phrase to a Starbucks short code to receive a download of the coupon. About 60% of all distributed coupons were redeemed.

Even though coupons decrease a businesses profit margin for new and existing customers, they are still developing brand awareness and attracting additional business that can make up for the lost profit and develop additional loyal customers.

References:
Butcher, D. (2009, April 22). Starbucks runs mobile coupon loyalty program. Retrieved March 7, 2010, from http://www.mobilemarketer.com/cms/news/database-crm/3085.html

Dolcourt, J. (2009, November 24). Google mobile coupons save a buck or two. Retrieved March 7, 2010, from http://reviews.cnet.com/8301-19512_7-10404508-233.html

Moselli, D. Print to Mobile Coupons: Why Sunday’s Newspaper Coupons Will Soon Be Obsolete. Retrieved March 7, 2010, from http://mmaglobal.com/articles/print-mobile-coupons-why-sunday’s-newspaper-coupons-will-soon-be-obsolete