Shift from Mass to Target Specific

Abstract

Marketers, especially in the CPG and Food and Beverage industry, spend a considerable amount ($28.15 billion) in digital coupons to increase their sales, along with firming up brand loyalty among customers.

Companies find it difficult to increase their chances of coupon redemption when compared to the number of coupons that are distributed every year.

This whitepaper will help marketers to make a decision on the type of vendors they should choose to increase the chances of coupon redemption and thereby increase ROI.

Introduction

Approach of Consumers, Retailers, Brands and Coupon Service Providers towards Digital Coupons:

• Consumers increasingly prefer digital coupons because they are easily accessible via different mobile channels such as apps, daily deal, group buying sites and social network. The increase in smartphone and tablet penetration among consumers is also leading to more usage of digital coupons.
• Even though brands are investing more on digital coupons every year through different channels, the digital coupon redemption is only close to 6% out of the total number of coupons downloaded. This makes digital coupons costlier than traditional ones.
• Coupon service providers are adopting new technologies to make digital coupons more targeted or on a one-to-one basis. This would help the companies to increase the total number of coupons redeemed when compared to the total number of coupons distributed and thereby helping the clients to increase their ROI.