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  • Writer's pictureHannah

We asked Chat GPT about coupons, loyalty, and promotional incentives. Here's what we learned.

Updated: Jul 24, 2023

What Chat GPT 4 taught us about promotional incentives
What Chat GPT 4 taught us about promotional incentives

Although it has been used by many content marketing services for some time now, Chat GPT has recently gained popularity after being bought by Microsoft. Although the AI technology behind it doesn't yet create new insights, it can serve as a knowledge hub, gathering data from all over the internet. Enticed by the possibilities of this compressed library, we used the Open AI website to ask Chat GPT 4 a few questions about the state of coupons, loyalty, and promotional incentives.

Here are the questions we asked, click to get straight there:

Illustrating a chatbot experience across multiple customer communication channels

Q1: What are you?

A: I am ChatGPT, a language model developed by OpenAI. I am an artificial intelligence program designed to respond to a wide range of questions and prompts, using natural language processing to understand and generate text-based responses. My responses are generated based on the patterns and relationships present in the text that I have been trained on, which includes a vast amount of written content from various sources on the internet.

Q2: How do you work?

A: I work by using natural language processing (NLP) techniques and machine learning algorithms to understand and respond to text-based inputs. When you ask me a question or give me a prompt, I analyze the input using NLP to identify keywords and phrases, understand the context and intent, and generate a response that is relevant and coherent.

I am powered by a large neural network trained on vast amounts of written text from various sources on the internet. This training allows me to understand the nuances and complexities of language and generate responses that are similar to those that a human might provide.

As I receive more input and feedback, my neural network is continuously updated and fine-tuned to improve my responses and accuracy. This process is known as machine learning and is what allows me to learn and adapt over time to better serve your needs.

Q3: What do you think of coupons, loyalty, and promotional incentives?

As an AI language model, I don't have personal opinions or feelings, but I can provide you with information and insights about coupons, loyalty, and promotional incentives.

Coupons, loyalty programs, and promotional incentives are common marketing tactics used by businesses to attract and retain customers. Coupons can help increase sales, incentivize new customers to try a product or service, and encourage repeat purchases. Loyalty programs can help build long-term relationships with customers and increase their lifetime value to the business. Promotional incentives such as free gifts, discounts, and rewards can motivate customers to make a purchase or take a desired action.

However, the effectiveness of these marketing tactics can depend on various factors such as the target audience, the type of product or service being offered, and the competitive landscape. It's important for businesses to carefully consider their marketing strategies and tailor them to their specific goals and customer base. Additionally, it's important to ensure that these tactics are used ethically and transparently to build trust and credibility with customers.

Q4: What is the most important success factor in coupon marketing and promotional incentives?

Illustrating the usage of AI in marketing data

The most crucial success factor in coupon marketing and promotional incentives is to offer a compelling value proposition to consumers that motivate them to take action.

A successful coupon or promotional incentive needs to provide a clear benefit to the customer, such as a discount or a free product, that is perceived as valuable and relevant to their needs. The offer should also be easy to understand and redeem, with clear instructions and no hidden fees or restrictions.

In addition, it's important to target the right audience with the right message. Coupons and promotional incentives are most effective when they are tailored to the interests and preferences of the target audience, and delivered through channels that reach them where they are most likely to engage.

Q5: How promotional incentive tactics have evolved over the years?

Promotional incentive tactics have evolved over time to keep pace with changes in consumer behavior, technology, and marketing trends. Some of the ways that promotional incentive tactics have evolved include:

  1. Increased personalization: Promotional incentives are increasingly personalized based on the customer's purchase history, preferences, and behavior. This allows businesses to offer more relevant and valuable incentives that are more likely to drive engagement and sales.

  2. Use of digital channels: With the rise of e-commerce and mobile devices, businesses are increasingly using digital channels such as email, social media, and mobile apps to deliver promotional incentives to customers. This allows for more targeted and timely promotions and makes it easier for customers to redeem them.

  3. Integration with loyalty programs: Many businesses are integrating promotional incentives with their loyalty programs to create a more comprehensive and effective customer engagement strategy. This allows businesses to reward customers for their repeat business, while also incentivizing them to take specific actions, such as referring friends or trying new products.

  4. Focus on sustainability and social responsibility: Many businesses are using promotional incentives as a way to promote sustainability and social responsibility, by offering eco-friendly products, supporting charitable causes, or offering incentives for customers who engage in environmentally-friendly behaviors.

Overall, promotional incentive tactics have evolved to become more personalized, digital, integrated, and socially responsible, in order to better engage and incentivize customers in an ever-changing marketing landscape.

Q6: How to leverage coupons, loyalty, and promotional incentives to create long-lasting and sustainable consumer relationships?

Here are some ways to leverage coupons, loyalty, and promotional incentives to create long-lasting and sustainable consumer relationships:

  1. Offer personalized promotions and rewards based on customer behavior, preferences, and purchase history. This can help build trust and a sense of exclusivity among customers.

  2. Create a loyalty program that rewards customers for their repeat business and engagement with the brand. This can include offering exclusive discounts, early access to sales, and free products or services.

  3. Use customer feedback to improve the overall customer experience and tailor promotions and incentives to better meet their needs.

  4. Offer social cause-related promotions and incentives that align with customer values and interests. This can help build a sense of shared values and community among customers.

  5. Continuously measure and analyze the effectiveness of promotional strategies and make adjustments as needed to ensure sustained engagement and customer loyalty.

People interacting with an automation AI

Overall, leveraging coupons, loyalty, and promotional incentives to create long-lasting and sustainable consumer relationships requires a customer-centric approach that focuses on building trust, personalization, and engagement with the brand.

Q7: Imagine you are a high-value customer, who spends a lot. What promotional incentives would you like to receive?

As an AI language model, I don't have personal preferences or emotions, but I can provide some hypothetical ideas for promotional incentives that high-value customers might appreciate based on common preferences:

  1. Exclusive deals and offers: High-value customers often expect to receive exclusive deals and offers that are not available to other customers. These could be in the form of discounts, free upgrades, or personalized offers.

  2. Personalized experiences: Many high-value customers expect customized experiences based on their preferences and purchase history. This could include tailored recommendations, customized offers, or exclusive access to personalized assistance or support.

  3. VIP events and experiences: High-value customers may enjoy invitations to exclusive events, such as product launches or private concerts, or access to exclusive experiences such as behind-the-scenes tours.

  4. Cashback or points rewards: Many high-value customers appreciate cashback or rewards points for their purchases that can be redeemed for future purchases or experiences.

  5. Premium customer service: High-value customers expect top-notch customer service, such as dedicated support, fast response times, and a concierge-like experience that goes above and beyond standard service.

  6. Referral incentives: High-value customers who refer friends or family members to your business may appreciate incentives such as additional discounts or rewards points.

Overall, high-value customers expect exceptional treatment and incentives that acknowledge their loyalty and spending power. - Chat GPT.

Q8: Please tell me the most important statistics about coupons and promotional incentives.

Here are the important statistics about coupons and promotional incentives:

  1. According to Inmar Intelligence's 2021 U.S. Shopper Behavior Study, 84% of shoppers say deals influence their purchasing decisions.

  2. Coupons and promotional incentives continue to be popular marketing tools, with 90% of shoppers using coupons in some way, according to a 2021 survey by Valassis.

  3. Digital coupon usage is on the rise, with 59% of consumers using digital coupons in 2021, up from 54% in 2019, according to the same Valassis survey.

  4. Coupons and promotional incentives can have a significant impact on sales. Inmar Intelligence's 2021 Promotion Industry Analysis found that trade promotions (which include coupons and other promotional incentives) account for 25% of total U.S. consumer packaged goods sales.

  5. Coupons and promotional incentives can also drive customer loyalty. A 2021 survey by RetailMeNot found that 90% of consumers say they feel more loyal to a brand when they receive exclusive offers.

  6. Personalization is becoming increasingly important in coupon and promotional incentive marketing. According to a 2021 survey by Criteo, 57% of consumers say they are more likely to engage with a coupon or promotional incentive if it is personalized to their interests and needs.

  7. Mobile coupon usage is growing, with 68% of consumers saying they have used a coupon they received on their mobile device, according to a 2021 survey by Think with Google.

An illustration of an AI robot looking at data  and creating insights

These statistics highlight the continued relevance and effectiveness of coupons and promotional incentives in marketing, as well as the importance of personalization and digital channels in reaching consumers.

Q9: How to leverage the nudge theory in promotional incentives and coupon marketing?

The nudge theory suggests that small, subtle changes in the environment can encourage people to take certain actions without forcing them to do so. Here are some ways to leverage the nudge theory in promotional incentives and coupon marketing:

  1. Default options: Use default options that encourage customers to take the desired action. For example, you can pre-select a discounted product as the default option when customers add items to their cart, making it more likely that they will choose that option.

  2. Limited-time offers: Create a sense of urgency by offering limited-time promotions that encourage customers to act quickly. This can be a powerful nudge that motivates customers to take advantage of the offer before it expires.

  3. Social proof: Use social proof, such as customer reviews or ratings, to nudge customers towards a specific product or offer. This can help customers feel more confident in their decision and increase the likelihood that they will take action.

  4. Personalized recommendations: Use customer data to provide personalized recommendations that nudge customers towards relevant products or offers. This can increase the perceived value of the offer and make it more likely that customers will take action.

  5. Gamification: Use gamification to nudge customers towards taking a specific action. For example, you can offer rewards or badges for customers who complete certain actions, such as referring a friend or making a purchase.

By leveraging the nudge theory in promotional incentives and coupon marketing, businesses can encourage customers to take the desired action without resorting to heavy-handed or manipulative tactics. This can help to build trust and loyalty with customers, while also driving sales and increasing engagement.

Q10: How can businesses and brands optimize their spending on coupons and promotional incentives?

I would recommend the following strategies to optimize spending on coupons and promotional incentives:

  1. Focus on Customer Lifetime Value (CLV): To optimize spending on coupons and promotional incentives, businesses should focus on maximizing customer lifetime value. This means identifying high-value customers and creating promotions that incentivize them to make repeat purchases. Businesses should also focus on retaining existing customers by creating loyalty programs that reward customers for their continued business.

  2. Consider alternative incentives: While coupons and promotional incentives can be effective, there may be alternative incentives that can achieve similar results at a lower cost. For example, offering exclusive access to products or events may be a more cost-effective way to drive customer loyalty than offering discounts.

  3. Target the right audience: It's important to understand the target audience for the coupon or promotional incentive campaign and tailor the offer accordingly. This can help ensure that the offer is relevant and valuable to the target audience, and can help improve the effectiveness of the campaign.

  4. Collaborate with Partners: Collaboration with partners can help businesses to reduce costs and increase the reach of their promotional incentives. Partnering with other businesses can help to expand the customer base and provide access to new distribution channels. Joint promotions can also help to build brand awareness and increase customer loyalty.

  5. Measure and Optimize: To optimize spending on coupon and promotional incentives, businesses should measure the effectiveness of their promotions and make adjustments as needed. By tracking the ROI of each promotion, businesses can identify areas for improvement and optimize their promotional strategy over time.

Overall, optimizing spending on coupon and promotional incentives requires a data-driven approach that focuses on maximizing customer lifetime value, leveraging data analytics and personalization, collaborating with partners, and measuring and optimizing results. By following these strategies, businesses can create effective promotional incentives that drive long-term growth and profitability.

Q11: What is better: developing a coupon system internally or integrating an external coupon API?

A visualisation of an AI automation in the cloud infrastructure

Deciding whether to develop a coupon system internally or integrate an external coupon API depends on several factors, including the size and complexity of your business, your budget, and your technical expertise. Here are some pros and cons of each option to consider:

Developing a coupon system internally:


  • Provides more control over the coupon system, allowing you to tailor it to your specific needs.

  • Can be more cost-effective in the long run, as you don't have to pay ongoing fees or commissions to an external provider.

  • Gives you greater flexibility to customize the user experience and integrate with other systems.


  • Requires significant time, resources, and technical expertise to develop and maintain the coupon system.

  • May not have the same level of features and functionality as an external coupon API.

  • Can be more vulnerable to security breaches and other technical issues.

Integrating an external coupon API:


  • Offers a more comprehensive and feature-rich coupon system, without the need for significant development or maintenance resources.

  • Provides greater reliability and security, as the API provider is responsible for maintaining the system.

  • Can offer better scalability and flexibility, as the API provider is responsible for updating and improving the system.


  • May be more expensive in the long run, as you will have to pay ongoing fees or commissions to the API provider.

  • May be less customizable, as you will be limited to the features and functionality provided by the API.

  • May require more effort to integrate with other systems, depending on the API provider and your existing infrastructure.

Ultimately, the decision of whether to develop a coupon system internally or integrate an external coupon API will depend on your specific business needs, resources, and technical capabilities.

Q12: And finally, tell me something I don't know about coupons, loyalty, and promotional incentives.

Here's something you may not know about loyalty programs: According to a study by Colloquy, more than 50% of consumers have left a loyalty program because it took too long to earn rewards. In fact, the average American household is a member of 14 loyalty programs, but only actively uses 6 of them. This suggests that customers value loyalty programs that offer quick and tangible rewards, rather than those that take a long time to accumulate points or offer rewards that are not meaningful to them. As such, companies should consider simplifying their loyalty programs and offering more immediate and relevant rewards to increase customer engagement and loyalty.


What do you think of the responses? What questions would you ask the Chat GPT about coupons, loyalty, and promotional incentives? Let us know in the comments.

Have you learned anything new about promotional offers from Chat GPT?

  • Yes, the answers are interesting

  • No, all suggestions are already out there

  • Some answers were surprising and fresh

Illustrations by vectorjuice on Freepik.

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