Digital coupons are felt to be just as relevant as ever as retailers' omni-channel sales strategies become the norm, according to a study conducted by Forrester Consulting for the digital offers marketplace RetailMeNot.
Digital coupons continue to positively affect brand and loyalty. Nearly 7 out of 10 consumers (68%) strongly believe that digital coupons have a positive impact on a retailer's brand, and 68% also state that coupons generate loyalty.
Similarly, digital coupons increase the potential for conversion when consumers are in the cart and checkout phase of a purchase, and they play a key role in combating shopping cart abandonment. Of consumers surveyed, 64% said a digital promotion or a coupon often closes the deal if they are wavering or undecided on making a purchase.
In addition to being loyal, customers are incentivised to try a new brand when receiving a digital coupon on a smartphone. Nearly half of those surveyed (47%) stated they are open to doing so.
The study examined the impact of digital coupons and promotions within the retail industry, updating the trends reported in the 2011 study 'The Impact of Online Coupons and Promotion Codes', and highlighted what ordinary consumers are thinking about digital coupons, and providing insight into omni-channel offers in the offline world as well as how the mobile channel affects in-store traffic and sales.
According to Jill Balis, SVP of marketing for RetailMeNot, "How consumers research, plan and shop is evolving beyond the e-commerce site to include the mobile phone and tablet, yet the basic premise of coupons has remained the same. A great offer can drive incremental revenue, reduce shopping cart abandonment and result in happy repeat customers."
Digital coupons still preferred
An overwhelming 59% of respondents stated that out of all the different types of promotions a retailer can employ, digital coupons still sway them the most when it comes to influencing a purchase decision. Second to digital coupons, sales are preferred by 28% of those surveyed.
Receiving a deal or savings opportunity via a digital coupon can be the tipping point for a consumer to click "buy" online or to walk into a store and make the purchase in person. Nearly 80% of respondents agreed that digital coupons "close the deal" for them when undecided on a purchase.
Once a consumer receives a digital coupon, most are redeemed within several days. In fact, the study found that:
- 91% of desktop users redeem a digital coupon within several days;
- More than 90% of smartphone and tablet users redeem their digital coupons within several days;
- Nearly one-third of coupons found on smartphones or tablets are redeemed immediately;
- Nearly 30% of consumers used a digital coupon immediately upon receiving the offer.
Mobile spending impact
The survey also found that consumers are likely to spend more when redeeming digital coupons from their smartphones, with 55% of smartphone coupon users spending more money during an online or in-store visit (and the majority spending at least US$25 more).
Additionally, most customers (77%) said they spend between US$10 and US$50 more than anticipated when doing so, and 17% spend an extra US$50 or more on these occasions.