The number of e-coupons redeemed will more than double over the next five years, reaching $81 billion in 2021, increasing from an estimated $40 billion in 2016.
This is according to a new report from Juniper Research, which notes the growth is being driven by emerging channels and new partnerships. New technologies, like connected cars, will increase the growth levels, it adds. Juniper believes current partnerships between OnStar, Groupon, Exxon Mobil and RetailMeNot which provide in-vehicle offers tailored to location, will see rapid expansion.
Statista says digital coupons redemptions growth will mainly be driven by mobile coupons. Juniper notes with SMS coupons being the dominant delivery channel, mobile will account for over three quarters of redemption values by 2021. Further growth will be driven by in-app offers, which will represent almost a quarter of mobile coupons issued by the end of the period, it adds.
Europe, the Middle East and Africa dominated the mobile coupons market during 2015, says ReportsnReports. Increased investments from the mobile industry that induce policymakers to introduce regulatory changes will encourage adequate innovations and investments by different players, it adds.
Market research firm Global Information says as retail becomes an ever more connected experience, brands and retailers are increasingly seizing the opportunities available from the wealth of consumer data available today. Instead of mass-produced impersonal offers, tremendous opportunity lies in targeting customers with personalised, and tailored coupons via a range of channels, it says.
Juniper notes significant opportunity exists via location-based promotions, which target consumers on the go similar to the concept seen with in-store beacons, and expects more retailers to join this movement in the next few years. "This provides retail with a whole new dimension for loyalty campaigns, and will surely see success as a new delivery channel," says research author Lauren Foye.
According to the research, disruptive players could also have an impact in this space. It gives an example of Uber's partnership with Visa to offer loyalty features at partnering local businesses. Juniper adds other 'digital first' service providers like Uber, Lyft and Airbnb could seek to replicate this model, in an attempt to cement their customer base.
Juniper recommends digital coupon providers increase investment in beacon and NFC technologies, arguing that these offer the potential for highly targeted, contextually relevant coupons.
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