Offline coupons drive higher engagement over online ones

A recent study has revealed that offline promotional strategies, such as printed coupons, generate greater consumer engagement and redemption rates compared to their online counterparts.

The research, published in the Journal of Advertising Research, was carried out by a consortium of Japanese academics. Associate Professor Taku Togawa from Sophia University led the research team, which included Associate Professor Hiroaki Ishii and Professor Naoto Onzo from Waseda University, Assistant Professor Soonho Kwon from Kanagawa University, and Professor Ikumi Hiraki from Tokyo International University.

The team compared the effectiveness of online and offline promotional media by conducting a field experiment with Fujifilm, wherein online and offline coupons were distributed to 7,500 customers. These participants were divided into three groups to assess the redemption behavior: one group received offline coupons first, another received online coupons first, and a third group received online coupons only.

The findings indicated that the group first reached via offline media exhibited the highest redemption rates, whilst the group exposed solely to online media showed the lowest. Professor Togawa commented, "Printed coupons increase cognitive engagement, which in turn promotes redemption behavior."

One particularly interesting discovery was the significant impact offline marketing had on consumers with low brand attachment. These individuals showed greater cognitive engagement and were more inclined to redeem coupons. Accordingly, the study suggests that offline media plays an essential role in influencing consumer behavior, even amidst prevalent digital marketing trends.

Despite the higher financial outlay associated with offline marketing—USD $4,500 for offline-first and online-first groups compared to USD $0 for the online-only group—sales outputs were considerably greater. Sales figures were USD $13,000 for the offline-first, USD $11,100 for the online-first, and just USD $2,200 for the online-only format. Professor Togawa stated, "The higher costs of offline marketing are justified by the substantial increase in sales they drive."

A supplementary laboratory study involving 127 undergraduate students mirrored these results. Participants were presented with imaginary coupons for discounts at retail giants Starbucks and IKEA, either in print or online, and their responses were measured through an online survey. Participants with low brand attachment displayed a higher intention to redeem offline coupons, consistent with the field study.

"Our findings indicate that offline promotional media have an important role in triggering consumer behavior even in this digital age," notes Professor Togawa. The research, however, highlights the need for further studies to understand the varying influences of offline marketing across different consumer contexts, possibly extending to cross-national analyses.

For marketers, these insights stress the importance of balancing cognitive engagement and brand attachment when planning promotional strategies. Such an approach could lead to more precise targeting and ultimately higher redemption rates and sales.