So the question today is: Are consumers still cashing in on coupons? We’ll look at the latest research, the impact of digital coupons and whether consumers still care about their coupons.
According to a report by Invesp, 59% of consumers will use a digital mobile coupon while shopping in 2016. An Inmar 2015 Shopper Study shows while overall coupon redemption is down 13%, digital usage is up. Macy’s, Target and other retailers are experimenting with Near Field Communication (NFC), Wi-Fi or GPS using iBeacons to deliver coupons. Jupiter Research estimates by 2020, beacons will be used to distribute around 1.6 billion coupons to smartphones annually, up from just 11 million this year.
Digital coupons appear to be reducing the impact of coupon fraud and research also shows consumers spend between $10 and $50 more if they get to use a digital coupon. Coupons as E. coli crisis management tool? Seems to be working at Chipotle where the company is rebuilding customer confidence after losing $72 million in the last quarter of 2015 due to its E. coli crisis. 58% of consumers prefer to receive their coupons, discounts and promotions by email says a report from PricewaterhouseCoopers. The report has eight key findings with insight on everything from mobile preferences and loyalty programs to coupons and social media.
Interesting Digital Coupon Marketing Statistics
According to Marketing Blog, digital coupons are driving Omni-channels and mobile sales. The following statistics and trends, courtesy of Invesp, will give you more insights into the incredible potential of digital coupon marketing.
A total of 16 billion coupons were redeemed in 2014. By 2019, this will have grown to 31 billion coupons, of which 1.05 billion will be mobile coupons. In 2015, about 57.5% of U.S consumers used digital coupons while shopping. This will grow to about 59% by the end of 2016.
Despite the fact that only 48% of U.S companies will use mobile coupons, up from 36.5% in 2014, statistics indicate that 55% of consumers use mobile while searching for coupons, and 83% of all digital coupon users will use mobile by 2016. Via business2community.com
3 Ways To Maximize Your Digital Coupon Strategy
According to an Inmar 2015 Shopper Study, while overall coupon redemption was down 13% in 2015 year-over-year, digital coupon share and demand is up. In fact, 55% of consumers said they would use more coupons if they were available digitally.
Deciding to invest in digital coupons is just the first step. Developing effective distribution channels to get them into the hands of your target shoppers is the crucial component to success. The same Inmar study found that 63% of shoppers said they could not find coupons for products they wanted to buy. This raises a key question: How do you efficiently get new consumers to find, download or print, and redeem your coupons? Via mediapost.com
Digital Coupons Becoming Core Promotional Element
There is a pronounced trend, says the report, from brands and retailers to offer coupons which are based around location-aware delivery mechanisms, be it Near Field Communication (NFC), Wi-Fi or GPS. Coupons with a location element typically enjoy far higher redemption rates than those without, particularly in the form of impulse purchases. If a consumer with an enabled smart device with Bluetooth switched on and is in the proximity of a beacon transmitter, the transmitter will recognize the device and can push pertinent content and information to that device.
While rollout has been perhaps slower than was originally envisaged, says the report, a number of leading retailers have now begun to deploy beacons in their stores and outlets. Macy’s has been one of the leading retail advocates of beacon technology, with an early trial of iBeacon with 4,000 beacons installed, says the report. Additionally the report includes the experience of several other retailers Via mediapost.com
Can Digital Coupons Fight Coupon Fraud?
As Biz Report talks about, coupon fraud was an easy thing to do before digital coupons came out. This is because, although the coupon has to have a bar code on it to be used, people are able to create bar codes on fake coupons with just a computer and a scanner. With computers, high quality artwork and graphics can be made easily. Just by using a scanner and copier on an all-in-one printer, a person can easily create what they need on a fake coupon to be used at the store.
However, digital coupons are now a popular thing and because of them being created in the digital world, retailers don’t have to worry about coupon fraud anymore. Because, as mentioned above, they are set for the one product and for one time only. They are used online either with a computer or a mobile phone. Via inquisitr.com
Chipotle ‘Free Burrito’ Coupons Ease Diners’ Fears of E. Coli Outbreak
A free lunch may be all it takes to get people to forget about Chipotle’s E. coli outbreaks late last year.
Sales at the Mexican fast-casual chain declined for the first time ever last quarter as people were spooked by the food scare that sickened more than 50 customers. In response, Chipotle launched an aggressive marketing campaign to convince diners to return—including offering free burrito coupons via text message on Feb. 8 while its stores were closed for a food safety meeting.
The discounts, which expired last week, appear to be succeeding in luring customers back, research analysts at William Blair said in a report Thursday. Only 40% of people said they had changed their Chipotle eating habits since the E. coli disaster, down from 43% in January, according to this week’s 800-person survey, which William Blair has conducted monthly since November. Of those respondents, however, 70% say they have not eaten at Chipotle again since the illness broke out, an improvement from the 78% who said so in each of the last two months. Via fortune.com
Shoppers Want Email Coupons and Discounts
A report from PricewaterhouseCoopers reveals that 58% of U.S. shoppers prefer to receive their coupons, discounts, and promotions through email rather than other digital or physical means. This compares to 20% for printed coupons, 10% for text messages, and 5% for mobile apps. Nancee Halpin, a research associate for BI Intelligence, Business Insider’s premium research service, notes that this data creates a tremendous opportunity for retailers who rely on email marketing to reach their customers, as email drove 16% of all e-commerce orders in 2015.
But simply sending out the emails is not enough. Timing is also key. A report from Experian Marketing Services said that consumers on the receiving end of these email marketing campaigns are most likely to consequently make a purchase online if the emails are sent between 8 a.m. and 12 p.m. on Mondays. Via businessinsider.com
Key findings: Total Retail Survey 2016: PwC
PwC released its Total Retail Survey 2016 and it offers eight key findings that are invaluable for retail and e-commerce marketers. They compare China where 65% of consumers shop on mobilemonthly compared to only 22% in the US. Why do consumers shop where they do? 60% say price is still king with consumers.
40% of consumers wanted informed sales associates to help make a better shopping experience. 46% of those surveyed globally buy products via mobile several times a year compared to 40% last year. 91% are members of loyalty programs. The report is a valuable resource for retail marketers and managers. Via pwc.com
Coupon challenges ahead
Consumer preferences and technology are driving changes in the coupon industry and how retailers and other business are using coupons to build loyalty and drive sales. Retailers need to test new channels for delivering coupons as well as technology to take advantage of consumer interest in receiving coupons in new ways. Coupons aren’t going away but they are changing dramatically and they still remain an important core marketing asset.