Coupons are getting popular! But fading are the days of deal-savvy customers clipping coupons from newspapers and flyers. The coupon trend these days is paperless and moving in step with the rise of eCommerce. Instead of reaching for their scissors, consumers are reaching for their smartphones. They’re searching for deals and discounts online and redeeming digital coupons through their touchscreens.
As market researchers work to pinpoint the reasons behind the surge in coupon popularity, it’s important for businesses to get the facts so they can tailor their strategies to the trend. To help get you started, here’s a roundup of key statistics on digital discounts and coupons.
The Coupon Trend
Last year was a big year for coupons. In 2020, 70% of consumers reported love receiving coupons, but even more consumers used them – nearly 90%. When it comes to digital coupons, that love is growing in parallel with increased availability. Redemption of digital coupons was up by 27% and over 142 million US adults redeemed digital coupons in 2020.
The Future of Coupons is Paperless
When it comes to discounts, consumers are ditching paper for digital. Over half prefer getting coupons and discounts on their smartphones, and that’s part of a continuing trend. The share of consumers that preferred redeeming coupons on mobile devices grew from 32% in 2017 to 36% in 2018, and jumped to 45% in 2019. Now over 50% of all consumers prefer paperless discounts.
Deal Hunting Happens Online
With the rise of eCommerce, consumers are spending more time online, and that includes value-seeking shoppers. Once online, they adopt multiple strategies to look for savings.
For starters, 59% of consumers head to coupon and discount websites to look for deals. Another 54.4% narrow in on particular stores and visit those websites. And 40.7% of shoppers zero in on specific brand or manufacturer webpages to download or sign up for discounts. Social media is another popular source, and 35.6% of consumers look for deals on Facebook and Instagram.
Millennials Love Coupons
The stereotype of the senior citizen shopper as the typical, deal-seeking coupon user doesn’t match the reality. Consumers in all demographics are looking for value. In fact, the data shows that younger groups and millennial consumers respond especially well to deal offers and take advantage of them. Coupons are a great way to entice new customers to take a chance on an unfamiliar product or service and, among millennials, 89% say they’d try a new brand if they were offered a coupon.
Better yet, offer them a digital coupon. Millennials prefer online shopping, so it makes sense to incentivize this group with digital deals.
Among millennials, parents are particularly fond of using discounts on their smartphones, with 93% saying they rely on paperless coupons for savings. A vast majority of this group – 88% – are especially keen to find internet deals and use all their search savvy to uncover them, visiting brand sites, store pages, coupon aggregators, and social media feeds for discounts and coupons.
It’s not only the consumer who benefits from digital deals. When business offer discounts, value flows back in the form of brand recognition, customer allegiance and increased sales revenue. In the eCommerce marketplace, businesses need a strong social media following, and data shows that 74% of consumers are following for coupons. That growth in audience pays off down the road, as online coupon users spend 24% more than other shoppers. And when 68% of customers say that digital coupons generate brand loyalty, these customers are more likely to come back again and again, and to send other customers your way.
Coupons are key in direct email campaigns as well. Messages containing coupons show a 14% increase in open rate, a 34% increase in unique clicks, a 27% increase in transaction completion and a 48% increase in revenue.
The message is clear: the only thing shoppers love better than a discount is a digital discount. As the big fall shopping events and holidays approach, it’s the perfect time for businesses to start exploring the power of paperless coupons as a vital part of their eCommerce marketing strategy.