Coupons are normally vouchers that are made available through media, such as newspapers or magazines, and they can be redeemed at a store, either for cash value or a discount off a product. Deals normally refer to an offer that the retailer has for all customers for a specific product, for example a 30 percent reduction on all clothing. Loyalty schemes refer to a connection between the retail outlet and the customer. The customer may be able to accumulate points to spend over a longer period of time, meaning the customer will also keep returning to earn more points.
The United Kingdom has many supermarkets that offer loyalty cards to their customers. Tesco and Sainsbury's are at the forefront of this, with 65 percent of their customers having a loyalty card to collect points. Many customers feel that the loyalty card does influence where they shop. The main desire of a customer with such a loyalty card is 'A scheme that was quick and easy to use that would influence where they spend their money'.
According to surveys, consumers in the United Kingdom also carry more than one loyalty card, with 28.3 percent of respondents saying they have three, meaning not all of their shopping is focused on one store. The mean number of loyalty schemes for the supermarket sector was 1.74.
Over 50 percent of consumers have used promotions such as reward or loyalty schemes in the last 12 months in the United Kingdom. Another 45 percent have frequently used coupons in the supermarket when shopping for their groceries.
32 percent of consumers in 2014 obtained their coupons through magazine and print media , 20 percent downloaded the coupon off a website and 11 percent used their smartphone.
