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eCoupon Redemption Rates

eCoupons

Groupon eCoupons

DIGITAL COUPONS POISED FOR GROWTH

ABI Research

Digital coupons redeem at a much higher rate between 5% and 20%.

Than compares with 0.9% for free standing insert coupons.

THOUGHT: While digital coupons still pale in comparison to free standing inserts (which constitute nearly 88% of CPG coupons), the trend is toward electronic distribution.

The biggest obstacle right now is the reader technology to track and redeem electronic coupons on the merchant side. The point of sale technology is not yet ubiquitous.

But the incentive for businesses to put that technology in place is clear: 53% of shoppers redeeming a digital coupon are buying a product for the first time, compared with 32% of those redeeming paper FSI coupons, according to a Knowledge Networks study.

KEYWORD WEDNESDAY: The two most popular daily deal sites, Groupon and LivingSocial, were barely known in late 2009 but have since become wildly popular, if judging only from search demand. They’re riding the wave of demand for coupons that has been steady since 2004 but sharply gained steam with the economic crisis of 2008.

WATCH FOR ME Monday night on WCCO TV news.


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About David Erickson

David Erickson is principal of e-Strategy Media, a digital marketing consultancy based in Minnesota. David has extensive experience in digital marketing and is often used as an expert source by media and asked to speak on the topic before organizations and to sit on panel discussions.

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