Offer Coupons or Lose Customers: Why Contractor 20/20 supports the use of Coupons

Hilton has the Hilton honors program that gives me points every time I stay at a Hilton, and a free stay after so many points are earned … this is just one form a coupon program can take. Airlines have programs that are basically coupon programs. That Subway card is a coupon program. And JC Penny’s just learned the hard way that coupon users will always be coupon users.

For those who don’t believe in using coupons, or don’t want coupon-oriented customers … try calling the Hilton, all the airlines, and credit card companies and argue your case and see if they might pay you a fee for your advice.

Here is my view supported by facts:

1)  A coupon is a sale limited to the coupon holder so that you can charge full price to the 78% of homeowners who do not use coupons or sales.

2)  A coupon helps protect your 22% of coupon using customers from other companies that would lure them away with a coupon.

Neilson reports that 22 percent of households use coupons and the more money you have the more likely you are to use a coupon. Naturally you would think lower income families would use coupons more often, however that is not the case. Instead, more affluent households are the dominate group using coupons. In 2009, households with incomes at and exceeding $100,000 were the drivers of coupon growth. And 38 percent of “super heavy” coupon users, and 41 percent of “enthusiasts” coupon users, come from households with incomes greater than $70,000. The enthusiast category also attracts a disproportionate number of households with incomes between $50,000 and $69,000. The bottom line is that affluent households are more apt to be heavier coupon users. Non-users typically have lower incomes. This means that when you lose a deal to a competitor because you chose to not use a coupon, you potentially lost an affluent customer who can afford you when they have a problem, and may also be able to afford the luxury home improvement items you have available.

In addition, it is important to recognize that Smartphones have made it easier for even the most forgetful or unorganized person to use coupons as they are able to bring up their emails and show store clerks the coupon, or use new easy-to-flash smartphone downloads, or use one of the many aps designed to pull coupons from the internet like KeyRing. Our economic situation, and the growth of technology have

Increased coupon redemption in the U.S. by 63 percent according to

Bottom line! More people are using coupons, and if you choose not to use coupons than that means you will lose potential customers to competitors who will…and not just any customers, but affluent customers who can afford you in an emergency and can afford the luxury products and services you have to offer. Some plumbing contractors, HVAC contractors, and electrical contractors are afraid coupons will take away from their image or branding, but this is simply not the case when the customers you want are the ones who like coupons.

For more information call us today and let us help you get a direct mail program  started that actually works!


Michael Morosi

Emily Morosi