RetailMeNot: Coupons Drive Brand Loyalty and Higher Sales

RetailMeNotSALE

operates the world's largest market place for digital offers. Recently, the company released a study it conducted with Forrester Consulting. The study examined the impact of digital coupons and promotions within the retail industry. The study concluded that digital coupons play an increasingly larger role as retailers continue shifting towards online sales and customers have become accustomed to discounts and other promotions. “This new Forrester study reiterates key findings from a similar 2011 study, while highlighting how digital promotional strategies are driving, and will continue to drive, meaningful positive impact on retailer sales through both e-commerce and in-store channels as mobile commerce grows,” said Jill Balis, Senior Vice President of Makreting for RetailMeNot regarding the

study's findings. “How we research, plan and shop is evolving beyond the e-commerce site to include our mobile phone and tablet, yet the basic premise of coupons has remain the same. A great offer can drive incremental revenue, reduce shopping cart abandonment and result in happy repeat customers.” The release of the study comes a few days after the nearly 25 percent decline in share prices. On August 5, RetailMeNot reported a poor second quarter along with a third quarter and full year guidance below the consensus estimate. Digital coupons contributes to brand loyalty and buying decisions
68 percent of consumers surveyed believe that digital coupons have a positive impact on a retailer's brand while 68 percent of those surveyed also believe that coupons generate loyalty. Meanwhile, 64 percent of those surveyed stated that a digital promotion “closes the deal” when without one the consumer is sitting on the fence and undecided on making a purchase. The study further adds that most digital coupons are redeemed within several days. “Digital coupons increase the potential for conversion when consumers are in the cart and checkout phase of a purchase, and they play a key role in combating shopping cart abandonment,” the study claims. In addition to driving loyalty, customers have a greater incentive to purchase an item from a new brand when presented with a digital coupon on a smartphone. According to the study, nearly half of those surveyed indicated a willingness to do so.