Study: Digital coupon redemptions to nearly double by 2022
Digital coupon redemptions are surging — and show no sign of slowing anytime soon.
The value of digital coupon redemptions will reach $91 billion by 2022 — up from $47 billion in 2017, according to “Mobile & Online Coupons: Leading Vendors, Technologies & Markets Forecasts 2017,” a report from Juniper Research.
According to the study, mobile will account for nearly 80% of all coupon redemptions by 2022. In-app usage will drive these redemptions toward the end of the period, overtaking SMS — a channel which also continues to grow. The reason that coupon redemptions will be largely generated via app-based platforms is due to increased loads of both one-time and loyalty-based incentives for use in store.
“SMS remains a vital channel in reaching consumers, whereby a phone number acts as a unique ID in delivering one-time offers,” said research author Lauren Foye. “Consumers are more receptive to personalized offers delivered via this channel. They are protected by stringent regulation in Western markets which prevents high volumes of spam, compared to arguably less customer-minded channels such as email.”
In addition to apps, three stand-out technologies that also show significant disruptive potential include chatbots, QR codes, and invisible payments.
For example, for the first time, Juniper has quantified the volume of chatbot coupons as 25 million this year. They are on pace to reach 1.1 billion by 2022. The technology will enable greater personalization of offers, particularly through use via social media. It is also a fraction of the cost of using human operatives, and will aid in driving commerce transactions both online, and in store, the study reported.
Additionally, disruptive technologies will drive more footfall for physical retailers. For example, invisible payments will streamline the shopping experience, while QR codes, will provide additional information and linked offers. Both are designed to greatly enhance the in-store visit, the study said.
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