According to a year-end analysis of CPG coupon activity by Inmar, for the fifth consecutive year, US consumers’ redemption of digital coupons increased by double digits. In 2017, consumers’ digital coupon redemption rose 67%, while marketers increased digital coupon distribution by 38%.
Shopper research by Inmar found that 53% of shoppers prefer digital-only coupons. This shopper demand is further evidenced in that the Load-to-Card coupons distributed delivered a 10x impact, accounting for a positively disproportionate 10.9% of the 2.1 billion coupons redeemed last year.
David Mounts, Chairman and CEO of Inmar, says “…brands and retailers increase their investment in digital coupons… enables marketers to more effectively leverage data to deliver relevant and personalized content to shoppers… there’s still a tremendous, unrealized sales opportunity as distribution of digital coupons is not keeping pace with demand…”
In sharp contrast to the explosive growth in Load-to-Card coupon redemption, Print-at-Home (PAH) coupons suffered a significant drop in redemption falling 33% between 2016 and 2017. The fourth quarter saw a 43% drop in redemption compared to the fourth quarter of 2016.
Mounts added, “Shoppers have been making their demands known for some time. They want a shopping and savings experience that is convenient, supports their lifestyle, and delivers real value. They’re choosing digital coupons because this method delivers on all three.”
As has been the case for years, print coupons included in Sunday newspapers, known as Free-Standing Inserts (FSIs), are still very much a promotional mainstay with marketers, but are less aligned with the demands of today’s increasingly digital shopper base. In 2017, FSIs:
Though select promotion methods have declined, coupons are still extremely popular as 88% of the shoppers surveyed by Inmar reported they used at least one coupon in the last three months of 2017. In addition, says the 2018 Shopper Behavior Study, coupons have a significant impact on shopper behavior. Among those who used a coupon in the last three months of 2017, 83% report the coupon changed their shopping behavior, motivating them to buy more, buy sooner, and/or buy a brand they would not have otherwise.
Notable data points include:
For more information and full report for purchase at Inmar Insights Marketplace in April 2018, please find Inmar’s annual Promotion Industry Analysis here.