A new research paper by Jupiter Research indicates digital coupons have become a core component of promoting a company’s products and services to customers and reinforcing brand loyalty.
Today, companies are seeking ways to keep their customers connected with their brand and establish even greater loyalty. Loyalty programs are certainly not a new element of marketing, but the huge boost seen in digital coupon usage in the last couple years indicates having a digital coupon strategy has become the newest, most powerful “loyalty program” in existence.
The information in the paper reveals brands are most likely to use digital coupons because they:
- Enhance engagement with the end user
- Track patterns of behavior and purchasing on an individual level
- Analyze the amount of success campaigns experience, taking into account redemption and engagement
- Deliver personalized, targeted offers based on an individual user’s location or purchasing history
The goal of digital coupons is to drive more transactions, and not necessarily to raise awareness. However, brands are experiencing success in both of these areas by making their digital coupons widely available to customers and smartly marketing them through mobile channels.
The report also goes into detail about some of the successes major corporations have had with digital coupons and beacon technology, which is used to personalize the data received by customers. Target, for example, was in the process of testing such technology in a variety of stores across the United States as of August 2015. Walmart and Walgreens have also tested this technology at stores.
The report also contains a section with some projections about the future of digital coupons. It estimates that by 2020, beacon technology will be used to distribute approximately 1.6 billion coupons to smartphones every year. This year that number is just 11 million.
Clearly, the growing digital coupon trend is only just beginning to establish itself, and we are in for a significant boom in coming years. Get ahead of the game by working with That’s Biz to create digital coupons for your restaurant.
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