Advantages and Disadvantages of Digital Couponing


Advantages and Disadvantages of Digital Couponing

Digital couponing is a way to entice consumers by offering personalized deals. It is becoming an increasingly popular marketing strategy, as more and more people are turning to mobile devices for their shopping needs. The use of coupons has also been gaining momentum in the online world, as stores utilize them to enhance customer retention rates and drive bottom-line capital gains.

Digital couponing can be found at grocery stores, drugstores, and big-box retail stores. These coupons are often associated with loyalty card accounts. They can be found on a retailer’s website or in the retailer’s app. Once the shopper logs in, he or she can scan the loyalty card to apply the offer to the purchase. In addition, digital couponing allows retailers to compete with e-commerce.

Digital couponing can also help a retailer build brand awareness. When customers see a promotion on the site, they can be more likely to take the time to shop at the store. On top of that, digital coupons have a high conversion rate. Customers typically add the offer to their shopping cart, and they check out automatically. This saves shoppers a lot of time and hassle.

While digital coupons have increased in popularity, they do come with some disadvantages. There are public interest groups who are arguing that the industry is discriminating against certain demographics, such as seniors. For instance, a public interest group sent a letter to supermarket chains, asking them to expand the number of digital deals available to seniors.

A study published by eMarketer reports that, in 2013, 52 percent of American adults redeemed digital coupons. This is higher than the rate of paper coupon redemptions. However, the ROI for digital couponing is generally lower. This is because digital couponing requires a loyalty account to redeem the discount.

Couponing websites are usually aimed at affluent, educated consumers. Many of these users have college degrees, or household incomes of over $75,000. By participating in discounting programs, consumers can gain access to products and services they would otherwise not be able to afford. Some of these coupons can be used as standalone promo codes.

Another disadvantage to using digital coupons is the fact that many brands limit the amount of money they allow customers to use. This is due to the fact that people do not always keep a loyalty account with a particular retailer. Moreover, some consumers do not have internet access. Therefore, a company’s strategy can be hampered by the fact that they are not able to reach their target audience.

One way to combat this is to offer more flexible discounts. If a retailer wants to encourage more shoppers to use their loyalty cards, they should offer rewards that can be applied to the purchases of the user. Such rewards can include gift cards, free drinks, or discounts on gasoline. Alternatively, some businesses offer coupons for slow-selling inventory.

Another way to promote a digital couponing strategy is to use special browser extensions that allow users to easily find the corresponding code. As an example, a person can use the Fetch app to search for offers and then upload their receipt to earn rewards and prizes.

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