Digital coupons are vouchers that are available online. These can be redeemed online and offline. Digital coupons can be added in the store account or loyalty cards. Digital mediums such as cell phones and laptops are used to distribute digital coupons among customers. Many retailers now provide digital coupon facility to cater to the evolving technology. Digitization has helped many businesses in direct marketing of their brands and improving their sales. Furthermore, digital coupons are delivered to customers in different ways such as short message services (SMSs), multimedia message services (MMSs), E-mails, push notifications, social media platforms and retailers websites. The Groceries Manufacturers Association defines a coupon as a form of legal tender. Digital coupons are auditable and considered as taxable revenue.
Digital coupons plays a pivotal role in online businesses due to the involvement of real-time payments. Adoption of coupons has increase after the introduction of digital coupons. Digital coupons enhances the involvement of customers in digital shopping. These coupons allow various brands to increase their customer base. Customers that are outside the retail location are also attracted by providing offers.
Expiration dates on digital coupons automatically encourage customers to shop frequently. This, in turn, drives the digital coupons market. Moreover, the use of these coupons also helps in unloading stagnant inventory. Digital coupons also reduce the risk of fraud such as reuse of coupons. Costs related to the printing and shipping traditional coupons reduce due to the use of digital coupons. This is anticipated to propel the digital coupons market. Digital Coupon is also an effective marketing tool to indulge new customer base.
Brands are unable to reach customers who are unaware of digital coupons. This is likely to inhibit the digital coupons market during the forecast period. The companies operating in the digital coupons market cater to the people that that use cell phones, smartphones, tablets, laptops, and computers. Digital coupons can be reused by customers due to improper implementation of security, this is likely to cause loss to organizations. Thus, multiple usage of single coupons results in the downfall of the digital coupons market.
Increase in the number of smartphone users is projected to create opportunities in the market during the forecast period, as most smartphones users are aware of digital coupons and are likely to avail these coupons for purchase. Furthermore, increasing deployment of online business, which use digital coupons to increase their presence and customer base is anticipated to boost the market during the forecast period.
Based on type, the digital coupons market can be bifurcated into discount coupons and coupon codes. In terms of regions the global digital coupons market can be segmented into North America, Europe, South America, Asia Pacific, and Middle East & Africa. The market in North America is projected to expand due rise in awareness about digital coupons among customers and increase in use of these coupons as a marketing tool. Europe has many retailers that use digital coupons to attract new customers. The digital coupons market in Asia Pacific is estimated to expand due to advancement in technology and surge in the number of online businesses. The Digital India movement is projected to propel the digital coupons market in India.
Key players operating in the digital coupons market include Ebates Inc. provides online cashback offers. Coupons.com, Groupon, Amazon.com Inc., and RetailMeNot Inc. are online shopping websites that provide various digital coupons and cashback offers. ShopAtHome.com, LLC. provides cashback and coupons, Slickdeals, LLC provides coupons by popularity based , Savings.com has coupons of renowned brands and stores, Hip2Save by Hip Happenings, LLC provides numerous deals, pintable and digital coupons, and help tips about personal finances.