January 8, 2018 Jaclyn Bickerton
Today, you’d be hard pressed to find someone who isn’t looking for a deal of some kind. According to Hawk Incentives Research, 97% of consumers look for deals when they shop and 92% are always looking. This stat alone gives us insight into why coupons are an essential tool in the marketer’s toolbox. With the rise of mobile devices such as smartphones and tablets, digital coupons have become the new normal, and 82% of consumers say digital coupons are a convenient option compared to printed coupons. With no coupons to clip or to print, customers can simply enter a code online during the checkout process or bring their mobile device in store to redeem a great offer. But is convenience the only reason for the rise of digital coupon redemption rates?
Digital coupons have revealed several things, both about the way business works and the consumers that use them. Studies have shown that coupons are very effective at bringing in new customers, boosting last minute sales in ecommerce, increasing return on investments, and increasing the demand for certain products.
One of the most revealing aspects of this trend report is that coupons increase a consumer’s desire to purchase a product. 46% of those who redeem digital coupons have not purchased the product or service previously. When they receive a digital coupon, it encourages spending on something they normally wouldn’t purchase.
Another important thing to note about coupons is that redemption rates have spiked since digital coupons became big.
On average, the digital coupon redemption rate is approximately 77% significantly higher than print coupons. This can be both good and bad for businesses as higher digital coupon redemption rates mean that more people are taking advantage of the sale and getting the product at a discounted rate. For most companies, however, this is a worthy sacrifice, because on the other hand, digital coupons are increasing brand awareness, sales and the number of customers that make a purchase.
So why digital coupons over print coupons?
Digital coupons perform better than print. Besides the fact that they’re better at building brand awareness, they help to attract more customers than print. On average, digital coupons tend to perform 35% better than print in bringing in new customers, retaining existing customers, and raising brand awareness.
Digital coupons are easier to distribute. Digital couponing eliminates the need for printing and mailing coupons to your mass audience, collecting physical addresses here and there, and hoping that your magazine or newspaper coupon will be seen. Big data makes it easy to collect email addresses, and with a simple email marketing strategy, social media, and monthly newsletter, you can reach a larger number of people with less effort.
While digital coupon redemption rates are higher than print coupons, keep in mind that both digital coupons and print coupons have pros and cons, and most businesses try to deliver a balance between both digital and print coupons to appeal to a wider market. Regardless of digital coupons or print coupons, the coupon business is booming and isn’t going anywhere anytime soon. Everyone loves a deal.
Still want more? Download our coupon marketing white paper.