HOW PROMOTIONS HELP BRANDS WIN
The strategic role of coupons, cashback and on-pack promotions in today’s cost-of-living crisis
In a market where 75% of British adults now participate in promotions, the question for brands is no longer whether to promote, but how to do so without compromising margin or brand equity. Inflationary pressure and cost-of-living challenges have fundamentally reshaped purchasing behaviour, and brands are now operating in a far more price-sensitive market.
Shoppers are scrutinising every purchase, trading down where necessary, actively seeking added value, and demonstrating greater willingness to switch brands than at any point in recent years. Over half of Brits (53%) say they don’t care what the brand is, they’ll just shop whatever is on promotion!
Well-structured coupon campaigns, cashback, and on-pack promotions offer a strategic way to protect market share, drive measurable sales uplift, and encourage brand switching, without defaulting to permanent price cuts that erode long-term value.
The rise of the value-conscious consumer
According to a 2025 UK shopper survey by SAVI:
1 in 4 shoppers say coupons are essential to managing their budget.
57% say coupons influence their shopping behaviour.
76% are more likely to try a new product if it includes a coupon.
Research from YouGov shows:
72% of British consumers are more likely to try a new brand when it is on promotion.
63% find a brand more appealing when on promotion.
17% of British consumers find promotions exciting.
10% actively enjoy participating in promotional mechanics.
In a competitive FMCG market, this emotional engagement can be as influential as financial incentives in shaping consumer choice and brand preference.
Money-off and discount coupons drive trial and conversion
The instinctive response to price sensitivity is discounting. However, price cuts compress margin, dilute brand equity, and reset consumer price expectations. Money-off coupons remain one of the most efficient and measurable promotional tools available, offering controlled incentivisation. They are flexible, scalable, and highly trackable, making them ideal for performance-led marketing strategies.
Why coupons work:
Properly structured, they allow brands to:
Lower trial barriers during launch phases.
Stimulate short-term volume on specific SKUs.
Re-engage lapsed customers.
Counter competitive activity in defined retail environments.
Support retailer-specific activations without permanent price repositioning.
Because couponing can be digitally distributed, retailer-integrated, or CRM-led, it enables performance tracking and optimisation at scale. Couponing functions as a high-performance lever within an integrated 360° activation strategy, aligning commercial objectives with measurable ROI.
Cashback promotions protect perceived value
Cashback promotions provide a financial incentive without undermining on-shelf pricing. Customers purchase at full price and receive a partial or full refund post-purchase.
Cashback delivers:
Preservation of perceived value.
Protection of premium positioning.
Acquisition without price erosion.
Direct first-party data capture.
Digital amplification beyond retailer constraints.
In categories where brand equity and price signalling are critical, such as FMCG or health and wellness, cashback enables brands to stimulate acquisition without compromising long-term price integrity.
On-pack promotions win the 13-second decision window
In-store decisions are made quickly. Research from Nielsen shows shoppers spend approximately 13 seconds choosing between brands. On-pack promotions operate precisely within that compressed window.
Whether through instant-win mechanics, prize draws, value-added gifts, or QR-driven digital journeys, on-pack activity:
Disrupts habitual purchasing.
Drives impulse conversion.
Creates emotional engagement at the point of purchase.
Generates scalable data capture opportunities.
In retail environments, on-pack is often the most efficient way to command attention without altering base price and is a proven way to disrupt habitual purchase patterns.
The strategic importance of promotions in 2026
The behavioural shifts accelerated by the cost-of-living crisis are unlikely to reverse quickly.
We are seeing:
Structural price sensitivity.
Increased promotion literacy.
Greater willingness to brand switch.
Stronger demand for experiential value.
In these challenging economic times, promotions remain an extremely effective marketing tactic, as consumers are more motivated than ever to take advantage of them, whether to save money, to get an added experience, or just for the fun of taking part. They can even contribute towards building longer-term brand relationships, positively influencing hard-to-shift metrics such as emotional connection and long-term loyalty.
For boards and commercial leaders, this requires a reframing of promotional activity. Brands that fail to respond risk losing customers to budget alternatives or more promotionally agile competitors. The key is not simply discounting, it’s deploying intelligent promotional mechanics that balance margin protection, brand equity, and measurable ROI.
How Creatisan delivers measurable promotional ROI
At Creatisan, we design and execute integrated promotional campaigns that connect brands with value-conscious consumers, without compromising long-term positioning. Unlike standalone coupon platforms or fulfilment-only agencies, Creatisan integrates creative concept, digital infrastructure, compliance management, and fulfilment into a single activation ecosystem.
Our integrated model combines:
Strategic concept development.
Digital infrastructure and platform management.
Retailer and CRM integration.
Fulfilment and compliance management.
Data capture and performance optimisation.
In a challenging economic climate, the brands that thrive are those that activate intelligently. If you are reviewing your promotional strategy for 2026, we would welcome the opportunity to explore how couponing, cashback, and on-pack campaigns can deliver measurable commercial impact.
References:
SAVI
https://mrm.co.uk/cashback-and-coupons-find-favour-with-consumers/
https://saviuk.co.uk/wp-content/uploads/2025/01/savi-Shopper-Survey-Report-2025.pdf
YouGov
https://mando.co.uk/promotions-white-paper-3/
https://yougov.co.uk/consumer/articles/36345-cut-price-consumers-how-global-customers-prefer-th
Nielsen
https://www.nielsen.com/insights/2015/make-the-most-of-your-brands-20-second-windown/
