My gym is located next to a Walgreens and across the street from a CVS. When I need headache medication, more shampoo, or a pair of scissors, I always plan my trips to the pharmacy after a sweat session. Which pharmacy do you think I go to?
You might think that I'd go right next door, as Walgreens sometimes has lower prices and it's a more convenient location. But, every single time I need to buy something at a pharmacy, I wait patiently for the "walk" signal and cross the street to go to CVS. It's become a routine.
Why? Thanks to the CVS ExtraCare Rewards program, I might have a few 20% off coupons or "Extra Bucks" that get credited toward my total. These coupons make me feel good, like I'm saving money -- and I've happily become loyal to CVS over the years because of them.
That being said, it's quite possible I'm not saving money at all. In fact, I might even be spending more -- but, mostly because of the ExtraCare Rewards, I cross the street every time.
That's how powerful coupons can be for customer retention -- just one of their many uses. They can also promote new products, help get feedback from your target market, and attract new customers. And online couponing is only going up -- the use of online coupons has increased 13% since 2011.
To learn more about the data behind customer spending and the value of coupons in digital campaigns, check out this infographic from Creative Guerrilla Marketing.
Originally published Oct 2, 2014 12:00:00 PM, updated February 01 2017