Despite traditionally low redemption rates from money-off coupons in the UK, a recent survey carried out on behalf of Pay By Touch has revealed that British shoppers do at least show a positive attitude toward discount schemes if they are both highly targeted and convenient.
The survey found that 88% of shoppers said they would use discount coupons if the coupons were more personally relevant (i.e. focused on their own product preferences) and were also available in-store.
Loyalty card linkage
Almost all (95%) of shoppers who use a retail loyalty card reported having received in-store discount coupons. However, 75% of these said that they frequently forget to redeem them, even though some of the discounts were on items they normally buy.
Other factors that contributed to low redemption rates were "the inconvenience of having to carry pieces of paper around" and that "discounts are mostly for items I don't have a history of buying". Interestingly, only 3% said they would only like to use discount coupons to try a new product.
Pay By Touch
At Retail Solutions last week, Pay By Touch demonstrated its SmartShop in-store personalised marketing kiosk, which combines Pay By Touch's fingerprint identification technology with a relevance-based marketing platform to provide targeted offers based on shoppers' established preferences and buying habits.
Shoppers can collect personalised offers from the kiosk as soon as they enter the store, and then claim against any offers they've taken advantage of by simply identifying themselves at the checkout. SmartShop's targeting engine learns from each shopping trip and uses transaction data to help create the next set of offers and rewards for each customer.