What do you think? Digital Coupons vs. Traditional Coupons

Digital coupons are rewriting the marketing mix rules – but how deep into the story have we actually come?  Establishing the true shifts in coupon use, and understanding the effectiveness of digital coupons compared to print, are essential elements of judicious marketing plans.

Knowledge Networks has just completed a comprehensive analysis of coupon use, leveraging loyalty card data from over 2 million shoppers
from our National Shopper Lab. In addition to investigating trends in overall coupon redemption, our research compared digital print-at-
home and print (“traditional”) Sunday FSI coupons for
•     attracting    new    buyers
•     ability to drive incremental volume
•     ultimate return on investment
•     Life Stage profiles of heavy versus light users

With consumers more budget conscious in the current recession, overall coupon use is up 27% since 2008, according to Inmar. And print FSIs still represent the majority of the redemption, with a 44% share of market. But marketers need to take note: Our analysis shows that digital coupons are showing important strengths.  For the digital coupon events analyzed, 46% of redeemers were prior non-buyers of the product, compared to 34% for traditional print FSI coupons.  Overall, digital coupon are attracting more new buyers than print coupons by a margin of 35%.

In addition, digital coupons drive more incremental redemption.  For digital coupons, 77% of redemption volume is incremental, versus 68% for print coupons.  The shift to digital, however, is still very much in progress; the bulk of the business remains in print, and will for sometime.  The fact that print is also more profitable means that this business will not be going away anytime soon.  But as more and more coupons can be carried on Smart Phones and loyalty cards, digital coupons will become more ingrained and less demanding.

This is great news for KansasCityCoupons.com and the digital coupon industry! We are excited to now be serving the Kansas City Area and providing the very best coupons to Kansas City residents!

Research and information is provided by Knowledge Networks Trend Report for 2011 www.knowledgenetworks.com

Leave a Reply

You must be logged in to post a comment.