Discount coupons have long been a staple in the marketer’s toolkit, enticing consumers with the promise of savings and driving sales. In the ever-evolving landscape of mobile commerce (m-commerce), where smartphones have become virtual shopping malls, the role of discount coupons has taken on new dimensions. While these digital vouchers undoubtedly boost short-term sales, their long-term impact on customer loyalty and trust is a subject of ongoing debate and research.
The Allure of Discount Coupons in M-commerce
M-commerce apps have revolutionized the way consumers shop, offering convenience and personalization at their fingertips. Discount coupons, often delivered through push notifications or in-app messages, have proven to be a potent weapon in attracting and retaining users. The appeal is simple: consumers love saving money, and coupons provide a tangible incentive to make a purchase.
Research by Mishra and Sengupta (2024) indicates that coupons are particularly effective in the m-commerce context due to the personalized nature of mobile interactions. M-commerce apps can leverage user data, such as location and browsing history, to tailor coupon offers, making them more relevant and enticing.
Moreover, the immediacy of mobile coupon redemption, often facilitated by QR codes or unique coupon codes, adds to their allure. Consumers can instantly apply discounts at checkout, enhancing the overall shopping experience.
The Dark Side of Discounting
While the short-term benefits of discount coupons are undeniable, their long-term consequences are less clear-cut. Overreliance on discounts can create a “discount dependency” among consumers, where they become conditioned to expect lower prices and may hesitate to purchase at full price. This can erode profit margins and devalue a brand’s perceived worth.
Furthermore, it was also found that while coupons drive continued app usage, they can negatively moderate the relationship between customer satisfaction and continued usage. In other words, while satisfied customers are more likely to continue using an app, this effect is weakened when coupons are involved. This suggests that coupons may attract deal-seeking customers who are less loyal and more likely to switch to competitors offering better deals.
Building Trust and Satisfaction: The Long Game
To foster long-term customer loyalty and trust, m-commerce businesses must look beyond the allure of discounts. Mishra and Sengupta (2024) emphasize the importance of building trust through consistent positive experiences, reliable customer service, and secure transactions.
Customer satisfaction, driven by factors like perceived usefulness and confirmation of expectations, plays a pivotal role in trust formation. When users find an app easy to use, meets their needs, and delivers on its promises, they are more likely to trust the platform and continue using it, even without the constant lure of discounts.
Striking the Right Balance
The key to success in m-commerce lies in striking a balance between short-term sales promotions and long-term relationship building. Discount coupons can be a valuable tool for attracting new customers and driving occasional purchases, but they should not be the sole focus of a marketing strategy.
M-commerce businesses should invest in creating a user-friendly app, providing excellent customer service, and building a brand reputation that instills trust. By prioritizing customer satisfaction and trust, they can cultivate a loyal customer base that values the overall shopping experience, not just the discounts.
The Future of Discount Coupons in M-commerce
As technology continues to advance, the use of discount coupons in m-commerce is likely to evolve. We can expect to see more personalized and targeted coupon offers, leveraging artificial intelligence and machine learning to predict consumer preferences and behaviors.
Additionally, the integration of augmented reality (AR) and virtual reality (VR) into m-commerce apps may open up new avenues for coupon delivery and redemption, creating immersive and interactive shopping experiences.
However, the fundamental challenge remains the same: how to leverage discount coupons effectively without sacrificing long-term customer loyalty and trust. M-commerce businesses that can navigate this delicate balance will be well-positioned for success in the increasingly competitive mobile marketplace.
Key Points
- Discount coupons are effective in driving short-term sales in m-commerce.
- Over reliance on discounts can create discount dependency and erode profit margins.
- Building trust and customer satisfaction is crucial for long-term loyalty.
- M-commerce businesses should strike a balance between discounts and relationship building.
- The future of discount coupons in m-commerce lies in personalization and immersive experiences.
| Pros | Cons |
|---|---|
| Benefits the top line | Hampers customer loyalty |
| Attract new customers | Create discount dependency |
| Drive immediate sales | Erode profit margins |
| Increase average order value | Devalue brand perception |
| Enhance customer engagement | Attract less loyal customers |
| Can be personalized and targeted | May not be sustainable in the long run |
The article draws from article published by the author Mishra and Sengupta (2024) and includes additional inputs from recent research and publicly available information.
Mishra, A. N., & Sengupta, S. (2024). Discount Coupons Versus Trust and Satisfaction—Which is Better for M-Commerce?. Management and Labour Studies, 49(1), 28-42.