Digital coupon redemptions on track to surpass $90bn
The value of digital coupon redemptions will reach $91 billion by 2022, up from $47 billion in 2017, according to Juniper Research.
Its new report, Mobile & Online Coupons: Leading Vendors, Technologies & Market Forecasts 2017-2022, finds that the dominant mobile channel will be led by in-app coupon redemptions towards the end of the period, overtaking SMS, which also continues to grow markedly well. The largest volumes of coupon redemptions will be generated via app-based platforms, as providers see increased preference for the loading of both one-time and loyalty-based incentives for use in-store.
Juniper puts the volume of chatbot coupons at 25 million this year, with this set to reach 1.1 billion by 2022. The technology will enable greater personalisation of offers, particularly through use via social media, and at a fraction of the cost of using human operatives, and will aid in driving commerce transactions both online, and in-store. Additionally, technologies which streamline the shopping experience, such as invisible payments, or provide additional information and linked offers, such as with QR codes, will greatly enhance the in-store experience, driving footfall for physical retailers.
Mobile will account for nearly 80% of all coupon redemptions by 2022. Research author Lauren Foye says: “SMS remains a vital channel in reaching consumers, whereby a phone number acts as a unique ID in delivering one-time offers. Consumers are more receptive to personalised offers delivered via this channel, being protected by stringent regulation in Western markets which prevents high volumes of spam, compared to arguably less customer-minded channels such as email.”