Digital coupon redemptions to surpass $90 billion by 2022, says Juniper Research
A new study from Juniper Research has found that the value of digital coupon redemptions will surge to $91 billion (€77.15 billion) by 2022, up from $47 billion (€39.85 billion) in 2017.
The new research, Mobile & Online Coupons: Leading Vendors, Technologies & Market Forecasts 2017-2022, finds that the dominant mobile channel will be led by in-app coupon redemptions towards the end of the period, overtaking SMS; a channel which also continues to grow markedly well.
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Emerging technologies to boost digital loyalty
Juniper finds that the largest volumes of coupon redemptions will be generated via app-based platforms by the end of the period, as providers see increased preference for the loading of both one-time and loyalty-based incentives for use in store. The research identified 3 stand-out technologies showing significant disruptive potential:
- QR Codes
- Invisible payments
For the first time, Juniper has quantified the volume of chatbot coupons as 25 million this year, with this set to reach 1.1 billion by 2022. The technology will enable greater personalisation of offers; particularly through use via social media, and at a fraction of the cost of using human operatives, and will aid in driving commerce transactions both online, and in store.
Additionally, technologies which streamline the shopping experience, such as invisible payments, or provide additional information and linked offers, such as with QR codes, will greatly enhance the in-store experience, driving footfall for physical retailers.
Mobile to account for nearly 80% of coupon redemptions
The research found that mobile will account for nearly 80% of all coupon redemptions by 2022. It identified the importance of targeted channels; in particular SMS, as research author Lauren Foye explained:“SMS remains a vital channel in reaching consumers, whereby a phone number acts as a unique ID in delivering one-time offers. Consumers are more receptive to personalised offers delivered via this channel, being protected by stringent regulation in Western markets which prevents high volumes of spam, compared to arguably less customer-minded channels such as email.”
Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.