Is Mobile Transforming Digital Couponing?

While traditional, free standing inserts still account for the vast majority of coupons distributed annually, their redemption rates have been dwindling for years (now at a measly 0.29%!). Digital, print-at-home coupons have been around since the dawn of the internet (practically) but now they too appear to be suffering.

With the adoption of smart phones and smart phone technology (not to mention the rise of non-newspaper subscribing millennials), marketers have turned to players offering coupons that load directly to consumers' loyalty cards from their mobile apps.

The distribution of these coupons is still low however, McKinsey reports that they have "more than quintupled each of the past two years" and that "digital coupons will overtake all forms of print coupons other than newspaper freestanding inserts within five years."

There are also of course limitations to their effectiveness (e.g. no easy way to remind customers to use the coupons and many retailers don't broadcast these offers in store). However, this presents a great opportunity for enterprising retailers using beacon or geo-fencing technology.



Source: http://adage.com/article/cmo-strategy/catalina-bets-digital-coupons-load-loyalty-cards/295040/