In this weeks article we are looking to squash a myth.
Rich people don’t use coupons.
Our team was recently setting up a direct mail campaign and our client was reluctant about adding coupons. He told us this particular mailer would be targeting an area of wealthy people that lived in mansions. His thoughts were that coupons would “cheapen” his business and turn off the wealthy people from visiting his establishment.
Our team felt this would be a great opportunity to discuss the subject of coupons and how they are used by wealthy people. Recent studies show that wealthy people are very attune to saving money and finding ways to lower the cost of a product or service. In this article we are going to discuss facts and figures that back up this point.
Rich people do use coupons.
What is considered wealthy? There are many ways to calculate wealth as shown in this article from Time Magazine. For the purpose of this discussion, we are going to assume that “wealthy” means a household income of $125,000 – $200,000 and above.
Thomas J. Stanely, author of “The Millionaire Next Door”, spent a considerable amount of time interviewing wealthy people about their habits. Below are a few quotes from his interviews.
“I am a tightwad.”
“Most of our wives are planners and meticulous budgeters.”
“We live well below our means.”
Thomas Stanely quickly realized that a majority of the wealthy people he interviewed were very cautious about their spending. While they had money, they did not spend it frivolously. The millionaires he interviewed did not drive the latest model car, live in a huge mansion, or have a closet full of the latest designer clothing. In fact, many of them were living in middle class neighborhoods and appeared to be “regular” people.
Let’s look at the facts.
Fact: Households earning over $100,000 annually are twice as likely to coupon than families who make under $35,000 annually.
Wealthy people definitely are hip to using coupons. They understand the value of saving money and offering them a deal could be a great way to get them to try your business.
Fact: College-degree holders are also twice as likely to use coupons as those who did not graduate from high school.
Wealth is often associated with to a certain level of education. Educated people are aware of the importance of saving money, even if it’s a few dollars. They are prime targets for coupon strategies.
A Huffington Post article from last year touches on the habits of rich people. The article states that a majority of the rich and affluent comparison shop before they purchase an item. This is yet another nugget of truth that points to the fact that wealthy people are looking for a deal. The same person that comparison shops is typically the same person that will use a coupon to get a better offer.
When planning your next direct mail campaign, be careful about your assumptions. Just because you have feelings about a certain demographic does not make it truth.
Keep in mind that wealthy people are common people and common people are your customers.
Lastly, creating a smart coupon offer that benefits the customer (without putting you out of business!) is a great tactic for direct mail advertising. Whether you’re marketing to low income areas or high society neighborhoods, your coupons have the potential to get more people in the door. Coupons are your friend.