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Mobile Marketing: Digital Coupons Are Driving Mobile And Omnichannel Sales, New RetailMeNot Study Finds—Coupons Positively Affect Brand Loyalty, Incentivize Purchases, and Boost In-Store Sales

RetailMeNot, which operates a marketplace for digital offers, recently released the findings of an August 2014 study it commissioned from Forrester Consulting that looked at the impact of digital coupons and promotions within the retail industry. The research updates trends reported on in a commissioned 2011 Forrester Consulting study, The Impact of Online Coupons and Promotion Codes. According to the new study, digital coupons are as relevant as ever as retailers’ omnichannel sales strategies become the norm. Additionally, the research reviews how people are thinking about digital couponing and provides insight into omnichannel offers in the offline-channel world, as well as insight into how mobile affects in-store traffic and sales.

"This new Forrester study reiterates key findings from a similar 2011 study, while highlighting how digital promotional strategies are driving, and will continue to drive, meaningful positive impact on retailer sales through both e-commerce and in-store channels as mobile commerce grows," said Jill Balis, SVP of marketing for RetailMeNot, in a news release. "How we research, plan and shop is evolving beyond the e-commerce site to include our 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 continue to positively affect brand and loyalty

Nearly 7 in 10 consumers (68%) surveyed 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.

Mobile coupons can broaden consumers’ horizons

In addition to being loyal, customers are incentivized 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.

Digital coupons continue to rule the world of promotions

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.

Digital coupons create a sense of urgency for consumers

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. The study found:

  • 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

Consumers are likely to spend more when redeeming digital coupons from smartphones

The survey found that 55% of smartphone coupon users will spend more money during their online or in-store visit—the majority at least $25 more. Additionally, 77% of customers will spend between $10 and $50 more than anticipated, and 17% will spend an extra $50 or more.

Access the full study here

Edited by Richard Carufel

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