The Redemption Sweet Spot
Myth #6: Coupon offers on frequently purchased items are redeemed quickly, so an expiration of less than six months will do.
Fact: Targeted offers with expirations shorter than six months in general reap only half as many redemptions as longer term offers.
Myth #7: Current and competitive product users need the same coupon value to be motivated.
Fact: In any product sector, current users typically require much less offer value to drive them to purchase. Sectors vary, but it often takes 40 percent less value to move a current user than a competitive user.
Steve Litt is product director at ICOM Information & Communications, a Toronto-based provider of targeted list, data communication solutions and analytic services. Peter Meyers is vice president of marketing at ICOM Information & Communications. Both Litt and Meyers can be reached at (416) 297-7359.