The purpose of this report is to show how the spending habits of customers changes when they are given coupons versus when they arrive at the store with no discounts to use. The key variable discussed in one graph includes the number of items that were bought with and without coupons or store promotions. It also shows the percent of items purchased with each payment method allowed at the store. This comparison helps the management to decide whether or not their promotional credit card is actually worthwhile and worth keeping around. Does this store credit card benefit the company to have? Are the coupons beneficial to the store owners?
First, we will look at the ...view middle of the document...
If coupons are used as a marketing tool correctly, they can help bring in loyal long time customers, which is the main objective with this example as well as with any store.
Next to be discussed is the use of a store charge card. The following pie graph demonstrates the percentage of purchases bought on each payment type.
In looking at this graph, you can see how many purchases are put on which type of payment. A significant amount is put on the Proprietary Card, much more than any other payment method. There are also benefits to stores having in store credit cards as well. Providing a credit card to your customers can be a great convenience for them. It can also be a good way to boost your sales and generate higher profits. You can earn interest revenue on outstanding balances and save on the fees you have to pay when your customers use other credit cards at your locations. To entice customers to begin using an in store credit card, you may want to consider a reward or rebate program as well as a promotional interest rate. In doing this, you will boost your customer’s loyalty to your store and at the same time generate bigger purchases and more sales.
Below is a very simple cross tabulation which consists of the types of customer, regular versus promotional, and the net sales of each.
Type of Customer Net Sales ($)
Regular $ 1,859.75
Promotional $ 5,900.30
Total $ 7,760.05
There is a significant difference in the dollar amounts. A regular customer, which may just shop at this store once a year or maybe this is their first time being in is proven to spend less money than a promotional customer or a customer who comes in on a regular basis and uses the in store coupons and possibly even the credit card. Below is a graph that breaks down the dollar amounts even further to show how much more money is spent by a promotional customer compared to a regular customer.
This chart accurately shows how much more money is spent per transaction by a promotional customer compared to a regular customer. As you can see, there are significantly more purchases at higher net sales totals made by the...