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Digital Coupons Significant In Shopping And Purchasing
by Jack Loechner, Thursday, August 21, 2014 6:15 AM
According to a recent Forrester study, digital coupons are keeping up with the times, and are very relevant as omnichannel retail becomes the norm. The report says that, among 500 consumers who
have used a digital coupon within the past three months, 59% stated that digital coupons and coupons codes are most likely to influence their purchase decision compared with other types
of digital promotions. In addition, a strong majority of consumers will redeem a digital coupon code within three days of receiving it, and nearly one-third will redeem it
immediately. Times Using A Digital Coupon, Offer, Or Online Promotion Code In The Past
Three MonthsTimes Using ≤ 3 Mos.% of Respondents
1 to 5 70% 6 to 10 16 11 to 20 9 21 to 49 4 50 or more 2%
Source: Forrester Consulting/RetailMeNot, August 2014 Given these salient data points, says the report, it is clear that retailers need to
master the digital coupon process and identify the right partners. According to Forrester, the study yielded five key findings:
- Consumers are using tablets
and smartphones to view digital coupons as well as redeem them either online or in-store; however, the desktop and laptop computer are still the primary devices by which consumers
view digital coupons and promotions
- The primary means by which coupons are received continues to be email. However, native apps using location awareness technologies
and coupon sites are also on the rise and being put to use by leading-edge retailers
- There’s a real opportunity for retailers to master the digital coupon process.
Easy redemption, mobile-formatted coupons, and a balanced marketing plan will drive users to the store and online properties, which provides opportunities for conversion and
increased spend by consumers
- Customers continue to believe that coupons do not dilute brand perceptions; in fact, they strengthen loyalty. This perception continues to hold
true as much as it did since the last commissioned study in 2011
- Customers are likely to spend more than anticipated in-store when using coupons, so it’s critical for
retailers to make the redemption process part of the customer-selling model
Over a three-month period, 68% of consumers today have made between one and 10 purchases
online. Of those, 86% have used a digital coupon. Consumers continue to make purchases in the typical areas that one would expect. Restaurants, bath and beauty, and home and garden
tend to be the most top-tier categories where consumers have made their purchases online or in-store. The next group of retailers, where purchases tend to be made more online
than in-store, includes consumer electronics, books, movies, and music, as well as gifts and flowers.
Purchases Made Online In The Past Three MonthsPurchases% of Respondents 1 to 5 38% 6 to
10 30% 11 to 20 20% 21 to 49 9% 50 or more 2%
Source: Forrester Consulting/RetailMeNot, August 2014 An overwhelming 59% of consumers stated
that of the different types of promotions a retailer can employ, digital coupons still hold the most sway when it comes to influencing a consumer’s purchasing decision (see
Figure 2). This continues to reinforce a key finding from Forrester’s 2011 Thought Leadership Paper.
Types Of Digital (Online Or Mobile) Promotions Most Likely To Influence Purchase DecisionsPromotion
Influence% of Respondents Coupons or coupon codes
59% Sales 28% Daily deal vouchers
9%
Source: Forrester Consulting/RetailMeNot, August 2014
Coupons continue to positively affect brand and loyalty. What also continues to be true from 2011 is that 68% of customers strongly believe that digital coupons have a
positive impact on a retailer’s brand, and 68% of consumers also stated that coupons generate loyalty. Similarly, a digital coupon increases the potential for conversion when consumers
are in the cart and checkout phase of a purchase and plays a key role in combating shopping cart abandonment. 63% percent of consumers surveyed said a promotion or a coupon often closes
the deal if wavering or undecided on making a purchase.
Extent Of Agreement With The
Included Statements (5=Strongly Agree; 1=Strongly Disagree
Strongly agree Strongly disagree Don’t know 5 4 3
2 1 MORE likely to buy a product or service at
full price later from a company that offers online coupons or promotion codes 22% 28% 29% 10% 7% 5%
MORE likely to be loyal to a brand that offers online coupons or promotion codes 29% 39% 23% 3% 3% 3% LIKELY to tell a friend about a company that uses online coupons or promotion codes 34% 34% 22% 4% 4% 2%
Source: Forrester Consulting/RetailMeNot, August
2014 In addition to being loyal, customers are also very open to trying a new brand when receiving a coupon on a smartphone. In fact,
47% of those surveyed stated they are open to doing so. These points all add up to good news for retailers and continue to reinforce that this marketing tactic can make all the
difference when it comes to generating new customers, encouraging existing customers to spend more, and driving customers to a retailer’s brick-and-mortar locations.
Likelihood Of Action Upon Receiving A Digital Coupon, Offer, Or Online Promotional Code On
Smartphone While Shopping In A Store Likelihood ToTry a new brand% of
Respondents Not at all likely 14%
Probably not likely 11% Maybe 28% Somewhat likely 27%
Very likely 20%
Likelihood To Switch brands Not at all likely 14% Probably not likely 14% Maybe 37% Somewhat likely 23% Very likely 13%
Source: Forrester Consulting/RetailMeNot,
August 2014 Digital coupons are still primarily delivered the good old fashioned way through email, and consumers are increasingly using
tablets and phones to both find and redeem them. Sixty-five percent of those surveyed for this study stated that they used at least three digital coupons on their tablet, slightly
outpacing the use of the desktop computer (see Figure 5). However, retailers can’t ignore the momentum of mobile adoption. The report predicts that US mobile phone and
tablet commerce will top $114 billion by the end of 2014. While smartphone revenue in 2014 should total $38 billion, tablets are expected to top that, with a total of $77 billion.
30% of those redeeming a coupon on a tablet redeem it immediately, says the report, and 60% of consumers receiving a coupon via a smartphone redeem it immediately or within several
hours. Receiving a deal or savings via digital coupon can be the tipping point for a consumer to “press buy” online or to walk into a store and make the purchase in real
time. For
more information
from RetailMeNot, please visit here.