Coupon companies save consumers over $3 billion per year - Reuters

 

Coupon companies save consumers over $3 billion per year

Coupon companies save consumers over $3 billion per year

Thu Aug 2, 2018 - 03:53am UTC

Digital disruption meant advancing technology and innovation to meet global demands, changes and competition. For businesses, it meant tailoring their products and services to acquire and retain customers. In an increasingly competitive world, this becomes an important factor in defining the business’ success.

When looking at retail trends, the burgeoning coupons industry has played a significant role in driving sales and customers. For the average consumer, having access to deals and coupons has enabled greater spending. Customers enjoy getting the best deal out of a purchase and it incentivizes their shopping. Nearly 61% of customers are influenced by deals and coupons while making their purchases.

Coupon companies such as Deal Wiki stand to benefit from this trend. Data highlights that coupon companies have helped consumers save over $3.1 billion last year. What started as Coca-Cola’s coupon offer to get one free bottle in the 1890’s has spiraled into a multi-billion dollar industry that’s prominently present across digital platforms today. The most popular category in the coupon industry is food and healthcare. Household products, personal care and entertainment follow close behind.

With growing digitalisation, the coupon industry has also pushed to keep up with rising mobile usage. Some of the bigger coupon companies are now available across mobile platforms and engage digital marketing and client engagement tools to drive sales. Digital coupons are sent with coupon codes that can be redeemed at the point of purchase. Users also have the option to use a barcode reader available across retail outlets worldwide to scan their digital coupon, just like using a print version. Online platforms have also helped propel the coupon business. One of the biggest advantages for companies issuing digital coupons is that it is automatically deleted upon redemption, preventing any incidents of customers reusing it.

Increasing usage of mobile platforms have opened up opportunities for retailers to drive hyper-local and targeted engagement with customers. Companies now have the capability to interact with customers online, and communicate through social platforms. With the new advantages, companies should also be cognizant of the sustainability of this model. For an online platform to succeed, it has to have a digital strategy in place that will encompass the organization as a whole, instead of making it a one-time initiative.

A disruptor’s success lies in continuously innovating and reinventing itself to meet the changing demands – even if they are ahead of the market. With the coupon industry being heavily customer-focused, companies will have to focus on creating an experience that is simple, personal and convenient for the customer.

Data pegs the growth of the global mobile coupons market at over 56.5% by 2025. The sheer size is expected to have a spillover effect into other sectors such as telecom, retail, and technology. With the rise in effective digital marketing tools, the coupons industry is set to clock big gains in the future.

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