In 2012 we assisted our client, the Vidalia Onion Committee (VOC), to post a digital coupon ($.50 cents of 5 lbs) to their Facebook page which had less than 1,000 fans. Visitors were required to “like” the page to download the coupon. We did not pay to advertise the coupon online or post the offer to any coupon-related sites.
Within a few hours the number of Facebook fans increased by the hundreds which continued to amplify every few minutes eventually finishing at over 10,000 by the end of the first day. The total fan base continued to balloon to 35,000 downloads with an end of season redemption rate of 26%. The average coupon redemption rates range from 0.07% for Sunday Supplement coupons to 17.87% for instant redeemable coupons.
So what is driving this rapid growth of digital coupons? The recession caused consumers to tighten their belts as coupons in general became a more popular tool to save money and with the increase in coupon usage, digital coupons quickly gained mainstream acceptance.
According to eMarketer, this year, more than half of US adult internet users, or 110.8 million people, will redeem a digital coupon via any device for either online or offline shopping.
Mobile has played a significant part in digital couponing. Nearly 70% of mobile coupon users will access coupons via smartphone this year.
Inmar has been in the promotions industry for more than 30 years and currently processes and analyzes more than 2.3 billion coupons annually. In a recent report on 2013, Inmar stated that more than 66 million digital coupons were redeemed industry-wide – a 141 percent increase over 2012.
Inmar facilitated the redemption of almost 44 million digital coupons in 2013. That represents a 120 percent increase over the approximately 20 million paperless coupons the company settled in 2012.
According to Coupons.com, digital coupon users:
- Make 25 percent more shopping trips per year
- Spend 13 percent more per shopping trip
- Spend 42 percent more per year on grocery purchases
Here’s some additional reasons why digital coupons are a smart choice for marketers:
- 34% of smartphone shoppers use their devices for mobile coupons (Nielsen).
- 47% of mobile consumers want retailers to send coupons to their devices when they are in or near the store (Loyalty360).
- 25 million Americans use coupon apps each month (The NPD Group).
- 55% of consumers are interested in receiving reminders of available mobile coupons, but only 10% receive them (Mercator Advisory Group).
So let us help you develop your digital coupon program. Contact us for more information.
Written by Heidi McIntyre