There are 323 billion coupons printed each year and the redemption rate is less than 3%. Users only redeem coupons from places they would ordinarily purchase from anyway and 75% of the coupons redeemed are by consumers who buy the brand already, so it does not make your coupon unique to your company.
On the other hand you have scratch and win cards that provide a competitive edge, draw attention and get your consumers involved. This is going to help increase impulse purchases if your consumers think they are going to win something or if they have won something. Scratch and win cards are more personal and make a person feel like they won, not like they are receiving something everyone else got.
PRINTABLE COUPONS
By handing out scratch and win cards will generate curiosity of what's underneath unlike a coupon allowing your customers the opportunity to feel, touch, and scratch while being more involved with what they are looking at. Customers will view and interact with a scratch and win 10x longer than with a coupon or flyer creating a unique feeling. Consumers will more likely throw away a coupon before a scratch and win card, no one wants to throw away a winning lotto ticket.
Coupons:
o Over 323 BILLION annually printed.
o Less than 3% redemption rate
o 75% of the coupons redeemed are by consumers who already use that product or service. Meaning you are not attracting new customers
o Businesses now honor competitors coupons they go to. Meaning your coupon is not unique to your company and does help with branding or advertising your image.
Scratch & Wins:
o Redemption rates are high! No one throws away a winning lottery ticket!
o Consumers will interact 10x longer with a scratch and win than with coupons or flyers.
o Create a competitive edge. Control over your prizes and to where and whom they go to.
o Increase impulse purchases if the consumer thinks they might win or have won already.
o More personal promotion because consumers do not feel like they are receiving something everyone else got.
o Average Rate of Return is between 5-20% depending on the odds you choose for your scratch & win promotion.
S&W ROI:
o 5%=every 5 in 100 winners
o 10%=every 1 in 10 winners
o 20%=every 1 in 5 winners
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