A new study by RevTrax reveals some interesting statistics related to the relationship between consumer demographics and digital coupon conversion behaviors. The researchers studied millions of digital coupons used to drive in-store sales and cross-referenced that data with coupon activation rates by age, income, education, location, and more. Several key demographic groups demonstrated significantly different digital coupon in-store conversion rates than other groups.
Some of the findings from the study include:
Age
Older consumers are more likely to use digital coupons. “On average, a 10% increase in median age yields a 2.49% increase in activation rates for retail coupons in urban U.S. counties. Increased median age also correlates with higher activation rates for retail coupons when compared to CPG coupons (whether urban or rural).”
Millennials are least likely to use digital coupons. “On average, a 10% increase in people ages 15 to 24 resulted in a 1.20% decrease in activation rate for retail coupons in urban U.S. counties and a 1.35% decrease in activation rate for retail coupons in rural U.S. counties.”
Income
Consumers with higher incomes are more likely to use digital coupons. “On average, a 10% increase in median income yields a 1.59% increase in digital coupon activation rates for retail coupons in urban U.S. counties. Increased median income also correlates with higher activation rates for retail coupons when compared to CPG coupons (whether urban or rural).”
Employment Status
Consumers who are employed are more likely to use digital coupons. “On average, a 10% increase in unemployment rate yields 0.46% decrease in activation rate for both CPG coupons in urban U.S. counties and CPG coupons in rural U.S. counties.”
Education
Consumers with a college education are more likely to use digital coupons (in urban U.S. counties). “On average, a 10% increase in bachelor’s degree percentage yields a 0.70% increase in activation rate for retail coupons in urban counties and an extra 0.18% increase in activation rate for CPG coupons in urban counties.”
Gender
Women are more likely to use digital coupons than men (in urban U.S. counties). “On average, a 10% increase in the number of males per 100 females yields an 11.86% decrease in the activation rate for retail coupons in urban counties and a decrease of 2.46% in activation rates for CPG coupons in urban counties.”
RevTrax expects that the data revealed through this study will help brands and retailers better understand the relationship between coupons and consumer behavior and the need to align digital advertising with both ecommerce marketing budgets and brick and mortar budgets. Of course, this makes complete sense. A fully integrated marketing plan is always the most powerful marketing plan.
What do you think?
Image: Ayhan Yildiz
Susan Gunelius is the author of 10 marketing, social media, branding, copywriting, and technology books, and she is President & CEO of KeySplash Creative, Inc., a marketing communications company. She also owns Women on Business, an award-wining blog for business women. She is a featured columnist for Entrepreneur.com and Forbes.com, and her marketing-related articles have appeared on websites such as MSNBC.com, BusinessWeek.com, TodayShow.com, and more.
She has over 20 years of experience in the marketing field having spent the first decade of her career directing marketing programs for some of the largest companies in the world, including divisions of AT&T and HSBC. Today, her clients include large and small companies around the world and household brands like Citigroup, Cox Communications, Intuit, and more. Susan is frequently interviewed about marketing and branding by television, radio, print, and online media organizations, and she speaks about these topics at events around the world. You can connect with her on Twitter, Facebook, LinkedIn, or Google+.
