Mobile ecoupons to drive significant rise in redemption rates

Juniper Research has released a new report on ecoupons which forecasts that redemptions are set to rise significantly in the next few years, especially via mobile.

by Helen Leggatt

According to Juniper Research's report, 'Mobile & Online Coupons: Loyalty & Beacon Engagement 2016-2021', ecoupon redemptions are set to double over the next five years reaching $81 billion.

Mobile will be the main driver, primarily via SMS delivery, and account for more than 75% of ecoupon redemptions by 2021. Of those, a quarter (25%) will be generated by in-app offers.

According to Juniper, "significant opportunity exists via location-based promotions, which target consumers on the go, similar to the concept seen with in-store beacons" and, as a consequence, Juniper expects more retailers to join this movement in the next few years.

"This provides retail with a whole new dimension for loyalty campaigns, and will surely see success as a new delivery channel," said research author Lauren Foye.

Research conducted by Valassis earlier this year revealed that even the affluent aren't averse to saving money with coupons.

"Our study found that affluent shoppers are just as likely to take advantage of coupons as all consumers, as they still want to be smart about their spending," said Curtis Tingle, chief marketing officer at Valassis. "They are using both print and digital promotions, so in the age of omni-channel shopping, it is important that marketers use a balanced integrated media strategy to capture mindshare, build loyalty and drive both brick and mortar and e-commerce sales with affluent shoppers."