What: The long held belief in the retail industry that coupon loving folks (called devils by the retail industry- SERIOUSLY), had a negative impact on a grocery store’s bottom line appears to be not true, according to the folks at the Yale School of Management, who must have used coupons to help establish the University’s $18 billion dollar endowment.
What the Yalie’s say:
This customer segment — dubbed as ‘devils’ in retail — has been widely speculated to be a significant drain on retailer profits. However, the first research to quantify their effect finds that they are only about 1% of a grocery store’s customers and reduce the retailer’s profit by less than 0.2%
What I say: I just love the often negative terms people in industries like retail and credit cards use to describe people who resist the urge to over consume. We’re devils cause we use coupons and become deadbeats when we pay our credit card bills in full each month.
Read a previous post about the credit card industry
For great beach reading, read the entire paper “The Temporal and Spatial Dimensions of Price Search: Insights from Matching Household Survey and Purchase Data”