Thursday, September 18, 2014

Digital Offers Boost Retailer Brands and Shopper Loyalty: Forrester Study

Digital coupons are positively affecting the retailer’s brand and boosting shopper loyalty, says a new study by Forrester Consulting and commissioned by RetailMeNot, a web site displaying  offers from merchants and brands.
  
According to the research, digital coupons are as relevant as ever as retailers’ omni-channel sales strategies become the norm. Additionally, the study reviews how people are thinking about digital couponing and provides insight into omni-channel offers in the offline-channel world, as well as insight into how mobile affects in-store traffic and sales.


“This new Forrester study reiterates key findings from a similar 2011 study, while highlighting how digital promotional strategies are driving, and will continue to drive, meaningful positive impact on retailer sales through both e-commerce and in-store channels as mobile commerce grows,” says Jill Balis, SVP of Marketing for RetailMeNot. “How we research, plan and shop is evolving beyond the e-commerce site to include our mobile phone and tablet, yet the basic premise of coupons has remained the same. A great offer can drive incremental revenue, reduce shopping cart abandonment and result in happy repeat customers.”



Nearly 7 in 10 consumers (68%) surveyed strongly believe that digital coupons have a positive impact on a retailer's brand, and 68% also state that coupons generate loyalty. Similarly, digital coupons increase the potential for conversion when consumers are in the cart and checkout phase of a purchase, and they play a key role in combating shopping cart abandonment. Of consumers surveyed, 64% said a digital promotion or a coupon often closes the deal if they are wavering or undecided on making a purchase.

In addition to being loyal, customers are incentivized to try a new brand when receiving a digital coupon on a smartphone. Nearly half of those surveyed (47%) stated they are open to doing so.

An overwhelming 59% of respondents stated that out of all the different types of promotions a retailer can employ, digital coupons still sway them the most when it comes to influencing a purchase decision. Second to digital coupons, sales are preferred by 28% of those surveyed.

Receiving a deal or savings opportunity via a digital coupon can be the tipping point for a consumer to click “buy” online or to walk into a store and make the purchase in person. Nearly 80% of respondents agreed that digital coupons “close the deal” for them when undecided on a purchase. Once a consumer receives a digital coupon, most are redeemed within several days. The study found:

  • 91% of desktop users redeem a digital coupon within several days 
  • More than 90% of smartphone and tablet users redeem their digital coupons within several days 
  • Nearly one-third of coupons found on smartphones or tablets are redeemed immediately 
  • Nearly 30% of consumers used a digital coupon immediately upon receiving the offer.

The survey found that 55% of smartphone coupon users will spend more money during their online or in-store visit —the majority at least $25 more. Additionally, 77% of customers will spend between $10 and $50 more than anticipated, and 17% will spend an extra $50 or more.

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