In a recession market, it makes sense that use of coupons will increase. Often, retailers will distribute coupons with a safe guarantee that only a small fraction will be redeemed. The value of the coupon obviously has an impact on the redemption rate as the higher the reward, the higher the redemption rate. When times are tough, simply making the coupons and distributing them becomes a cost many retailers do not want to incur. That said, they know that offering incentives to shop through coupons will hopefully drive increased sales. So what to do? Simple, put the coupons online for customers to self service.
According to coupon processor Inmar, 13% of online coupons were redeemed in 2008, versus only a 1% redemption rate for print coupons. Online coupons are growing at a furious pace, too, posting a 140% growth rate over 2007’s previous high. Unfortunately, online coupons represent only 1% of the 2.6 billion coupons offered annually in the US. It seems retailers and consumers have yet to take the stand that online is a better, faster, cheaper and more environmentally friendly mode of distributing coupons.
comScore data showed that most consumers still get their coupons from paper sources, such as Sunday papers, receipts or in a store. Less than 30% of consumers claimed to go online to find coupons.
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Couldn’t agree more. Especially as the economy gets increasing difficult, the merits of doing things online, including coupons, become much clearer.
Very informative post! Normally I don’t comment on blogs but this post deserves it