How To Help Your Retail Customers Maximize Digital Coupons

By Christine Kern, contributing writer

A new study released by RetailMeNot demonstrates how digital coupons are adapting to mobile and omni-channel commerce.

The Forrester study titled “The State of Digital Coupons: How Digital Coupons Are Adapting To Mobile and Omni Channel” is the result of in-depth surveys with 500 consumers who used digital coupons within the past three months.

Forrester found that 59 percent of survey respondents indicated digital coupons and coupon codes were most likely to influence their purchase decision as compared with other types of digital promotions. The survey also demonstrated that a strong majority of consumers redeem their digital coupon codes within three days of receipt, with nearly one-third redeeming them immediately. Among the key findings of the study are:

• Mobile coupon use through tablets and smartphones is one the rise.
• Email maintains the lead.
• Retailers must master the digital to in-store redemption process.
• Digital coupons continue to increase loyalty.
• In-store customer service is imperative to success.

The study also revealed that coupons continue to rule the world of promotions and continue to positively affect brand and loyalty. Sixty-eight percent of consumers stated that coupons generate loyalty. Digital coupons also increase the potential for conversion when consumers are in the cart and checkout phase of a purchase, and play a significant role in combatting shopping cart abandonment. Sixty-three percent of consumers stated that a promotion or coupon often tipped the scales in favor of a sale when they were wavering on a purchase. 

Since predictions indicate that U.S. mobile phone and tablet commerce will surpass $115 billion by the end of 2014, including $38 billion in smartphone revenue and $77 billion in tablets, retailers need to pay attention to the growing mobile and omni-channel markets.

Consumers expect to be able to use digital coupons in-store, and they are likely to spend more in-store when redeeming digital coupons from smartphones. This is a tremendous opportunity for retailers to upsell or cross-sell. The study found that 55 percent of smartphone coupon users will spend more money during their online or in-store visit, with the majority spending at least $25 more per visit. 

Ultimately, the study provides these recommendations for optimizing digital coupons:

• Inventory availability: providing visibility if an item is in stock married with a digital coupon provides a seamless customer experience
• Pickup in-store: ensuring that pick up in-store is tightly coupled with the online or in-store digital coupon redemption process is key
• Existing services such as coupon apps:  leveraging pure play coupon partners as an additional marketing channel to help spread the word
• Rapid redemption: making it easy to apply a discount at the cash wrap
• Use of emerging technologies: making users aware of deals around them
• Use of in-store bar codes coupled with native apps: providing product information