Since one of the features of Welcome’s payment software is to print targeted coupons at the bottom of credit or debit card receipts, we sometimes get pulled into this debate. Retail marketing executives don’t usually question the value of coupons, but banking executives are not as familiar with promotional marketing techniques and often show a deep desire to eliminate paper coupons. They shouldn’t. Here’s why.
Last year, RetailWire ran a piece called, “Are Paper Coupons History?” and invited marketing executives to give their opinions. There are less than a handful of negative comments. Unlike one executive’s strident cry that “the traditional paper coupon is going to die”, you will find that the vast majority of comments are balanced, subtle and generally positive.
Take the following comment for example:
“It doesn't matter if paper is an old technology and it doesn't matter that coupons are distributed electronically, too. Marketers use coupons because they help induce people to try their brands. When the coupon offer is compelling, great results are achieved. The fact that well over 99% of all coupons become trash doesn't matter when that figure is compared to the effectiveness of the alternatives. Well over 99% of all ad impressions (radio, TV, newspaper, magazines, billboards, table tents, signage, press releases, skywriting, package inserts, public transit posters, blogs, spam, online banners) don't induce people to buy.”
Welcome’s payment technology also supports e-coupons stored in a credit or debit card’s chip, essentially eliminating the need for a paper coupon. That sounds good, right? The best of both worlds, right? Not always. In fact, not very often. I will explain in another post why I would almost always prefer a simple paper coupon.