Digital coupons are discounts, offers and promotions offered by an online store to current or prospective customers. Similar to their tangible counterparts, coupons are aimed at enticing a consumer to make a purchase at an online marketplace.
There are a number of coupons available to consumers. They include:
Digital coupons are a growing trend in the online retail world. A recent eMarketer study found that 52 percent of U.S. adult Internet users, or 102.5 million people, redeemed a digital coupon of some sort in 2013 (1). That figure is projected to increase to nearly 111 million, or 55 percent of the population, by the end of 2014.
Digital coupons exist because they help drive revenue for ecommerce businesses. They are beneficial for online retailers for a number of reasons:
Critics of coupons say they reduce average order value as well. For example, businesses often provide coupons for slow-selling inventory to entice further sales. New lines of revenue generate from coupons, regardless of their form. Online stores use coupons to drive bottom-line capital gains and improve customer retention rates while reducing shopping cart abandonment in the process.