Although redeeming coupons is a common phenomenon in the U.S. that seems to be on the increase this recession—www.coupons.com has seen a 90 percent increase in the past three months—the concept has not taken hold in South Africa. Radio station Algoa FM in the Eastern Cape is looking to change this paradigm by encouraging listeners to download coupons from its Web site; local businesses are offering discounts on products and services. As this is a regional station, the tactic fosters a sense of community with listeners and benefits all parties involved: The station is seen as having the interests of its consumers at heart; the featured companies get free exposure; and the consumer wins through saving money.
By not offering discounts, South African marketers are missing out on a key opportunity to boost customer loyalty and retention. Whether these savings are presented in the form of loyalty schemes or coupons depends on the category and consumer, but when times improve, consumers will remember those who helped them through the tough times.
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