What drives consumers to buy, and what do companies need to do to ensure that their products are at the center of the purchasing decisions they make? These are two recurring questions that those responsible for these brands ask themselves and that mark the strategy they follow to position themselves before them. Marketing strategy is often based on those beliefs and how they should be applied.
However, statistics show that there are many shadows between what is believed and what is true. Some ideas have been established as indisputable cell phone number database download truths when market research ends up showing that they are not so much.
A recent study has analyzed the impact of the incentives that brands and companies launch and how consumers respond to them, showing that there are four issues that were given as unquestionable truths that are not so much. Consumers want coupons, discounts, and loyalty programs, but those who want them and those who expect them may not be who companies expect.
No, millennials are not the most difficult consumers to convince to consume using incentives
One of the ideas that has spread in recent years is that millennials don’t care about coupons, deals, and discounts. They are not the elements that make them consume more and they prefer other issues such as elements to boost consumption. However, the study shows that these data are wrong.
They really love discounts and inventions, and when you look at the statistics, they are the ones with the best connection. 86% of millennials recognize that they are more likely to interact with a brand that offers them incentives. The same occurs with 84% of consumers between 39 and 53 years old, 77% of those between 54 and 65 and 76% of those between 18 and 23. Therefore, in the end, millennials (in this study the range from 24 to 38) are the most receptive.
The role of contests as brand introducers should not be underestimated
The study confirms that coupons and rebates / rebates are the elements that work best to promote a brand. To buy a brand for the first time, 88% bought them because they had a coupon to try that product and 66% because the product offered a future rebate / discount.
These formats work, therefore, but they should not make marketers forget that there are more. There are other ways to jump that first barrier to the new product that they get consumers to buy. This is the case of contests and raffles. 45% of the consumers surveyed recognized that they had bought a product for the first time for that reason. This is interesting not only for its potential but also because, economically speaking, this is a cheaper way to reach consumers. Brands and companies therefore have to think very carefully about what they want to do and what they want to invest in it.
Your higher-income consumers want contests and discounts too
In Louis Vuitton they do not have a loyalty card that accumulates points for all your purchases and makes sure that when you reach this or that level you access certain benefits. In a way, it may seem somewhat misguided to put high-end consumers in competition for profits or to keep them with loyalty schemes. A high-end store does not need the Club Dia.
And yet, things are not exactly like that. Although high-end brands do not offer incentives because they feel that it undermines their brand image, high-income consumers also want certain elements of loyalty systems and want them more than low-income consumers cell phone number database download . Statistical data indicates that consumers with higher incomes are more interested in contests and lottery systems as a reward and incentive to consumption than those with lower incomes.
78% of those who enter between 80,000 and 120,000 dollars a year and 70% of those who exceed 120,000 want contests, compared to 47% of those who enter less than 20,000.
Loyalty programs don’t work just to incentivize purchases
Loyalty programs are important for brands and companies because they want to shield consumers. If you are in the program of this or that brand or store, sellers reflect, they will end up buying in it to maintain those benefits.
Consumers, however, give a different version. When asked what the loyalty program encouraged them to do, most noted that the impact was on the information. 72% acknowledged that they were more willing to give personal information to the brand, compared to 40% who bought more frequently or the other 40% who acknowledged that they bought things earlier than they would with another company.