The State of Digital Coupons report from RetailMeNot and Forrester Consulting reveals that digital coupons are still a critical method of building brand loyalty and generating sales.
In fact, coupons are the most effective method of influencing customer purchase decisions with survey respondents ranking coupons twice as effective as sales (59% vs. 28%) and more than six times more effective than daily deal vouchers (9%).
Furthermore, more than two out of three consumers believe that coupons effectively build brand awareness and generate loyalty (68% each).
Nearly one in two consumers are more likely to try a new brand when they receive a coupon for it on their smartphone while shopping in a store (47%), and more than one in three consumers are likely to switch brands when they receive a digital coupon on their smartphones while shopping in a store (36%).
Not only are digital coupons effective in driving brand loyalty and sales, they’re also extremely effective at motivating people to visit brick-and-mortar stores. In total, 50% of consumers are more likely to visit a store if they’ve received a digital coupon from that store.
Digital coupons are one of the few marketing messages that consumers truly want to receive from brands. The research found that 60% of consumers love to receive digital coupons. The majority of consumers find digital coupons in email messages that they receive from brands, online searches, coupon mobile apps, and emails sent to them from coupon companies.
It’s important to keep in mind that just because consumers want to receive digital coupons doesn’t mean that all coupons will be successful in generating sales and brand loyalty. The research study found that nine out of 10 consumers use digital coupons within several days of receiving them. In fact, approximately one in three consumers use digital coupons immediately after they receive them, and another one in three uses them within several hours of receiving them.
For brand marketers, digital coupons should be a core component of your retail marketing strategy, but remember, the lifespan of a digital coupon is very short! You need to test and balance your frequency of sending coupon messages with that brief digital coupon lifespan to find the best distribution schedule and method for your brand’s target audience.