Consumers and Retailers Increasingly Using Coupons

Americans love a deal, and despite the increasingly digital economy, they still rely on coupons, according to a new study shows that reports that 96 percent of Americans are coupon users.

The Shoppers Trend Report, conducted by the online retail portal RetailMeNot (www.retailmenot.com) in conjunction with The Omnibus Company (www.omnibus.com), shows the number of Americans who rely mostly on mobile coupons has been steadily increasing over the past few years (15 percent in 2014 vs. 10 percent in 2013 vs. 4 percent in 2010). This consumer behavior coincides with retailers and brands moving their marketing promotions to more mobile and digital formats. In May 2014 retail executives were polled in a separate survey, also conducted by The Omnibus Company, which found that 75 percent of retailers believe digital advertising delivers a higher ROI than offline advertising, including circulars and direct mail.

Key Findings:

    – 96 percent of Americans are coupon users
    – New York, Boston and Philadelphia reign supreme as top couponing cities
    – Mobile coupon usage continues to climb as the world becomes more digital

In short, more retailers than ever are looking to digital promotions, (coupons included).

“September is the official start of National Coupon Month. It's a reminder that we are a frugal nation that likes to save money when we shop,” says Trae Bodge, senior lifestyle editor for The Real Deal by RetailMeNot. “We are excited to release our findings, based on millions of offer clicks on RetailMeNot, on the top cities that save using coupons and other promotions. Additionally, our survey findings show how a consumer's mobile phone is becoming a key device within their savings tool kit as millions of shoppers increasingly take advantage of digital offers, promotions and sales opportunities.”

Cultural Impact of Coupons

Based on the level of coupon click activity in ratio with each city's population, the Northeast is the clear winner, with the New York, Boston and Philadelphia areas topping the list of the most active coupon users in America. Western communities appear to lag in their savings activity, with the Las Vegas, Phoenix and Denver areas representing the bottom of the active-coupon-user list. In fact, the New York, Boston and Philadelphia areas appear to be four times more active than the Denver area at couponing.

Westerners, listen up! You could learn a lot from your frugal East Coast counterparts, especially with the holidays on the horizon. As of August, 33 percent of survey respondents had already started their winter holiday shopping. Looking for offers can help put more money back in your wallets—especially when using savings tools like the RetailMeNot app, available for free on iPhone and Android devices.

Top Cities and Surrounding Areas That Save Based on Click Activity:

New York-Newark-Jersey City, NY-NJ-PA Metro Boston-Cambridge-Newton, MA-NH Metro Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Metro Hartford-West Hartford-East Hartford, CT Metro Providence-Warwick, RI-MA Metro Baltimore-Columbia-Towson, MD Metro Pittsburgh, PA Metro Washington-Arlington-Alexandria, DC-VA-MD-WV Metro Tampa-St. Petersburg-Clearwater, FL Metro Buffalo-Cheektowaga-Niagara Falls, NY Metro

Access the complete list of the top 50 coupon cities by DMA.

In the top 10 active couponing cities, clothing and food categories ranked consistently at the top for click activity, followed by electronics and home and garden.

Deals That Matter

According to the survey deep discounts aren't the only deals that shoppers appreciate, as more than 2 in 5 (43 percent) coupon users consider discounts up to 25 percent to be a good deal.

What kind of deals are consumers asking for? Respondents are most interested in deals that offer a specific dollar amount off of their purchase (30 percent).

The survey also shows that interest in different types of deals varies by region.

Coupon users living in the Northeast are more likely than those living in other regions to be most interested in receiving a specific percentage off a purchase (28 percent vs. 18 percent of the rest of the country). Those living in the South are more likely than those living elsewhere (26 percent vs. 15 percent of the rest of the country) to be most interested in “buy one, get one free” deals.

Gettin' Digital With It

The study found that over the past four years, the use of printable coupons has declined quite significantly (58 percent in 2014 vs. 73 percent in 2010). However, digital coupon usage has increased substantially as the world has gone more digital with online (27 percent in 2014 vs. 16 percent in 2010) and mobile (15 percent in 2014 vs. 4 percent in 2010) coupon usage both up considerably since 2010. Other findings from the survey include:

Connected ladies: Online coupon usage for females has more than doubled in the last four years (25 percent in 2014 vs. 11 percent in 2010) Recycle it! Printable coupon usage for 18- to 34-year-olds dropped significantly in the past four years (40 percent in 2014 vs. 57 percent in 2010) Wired seniors: Online coupon usage nearly tripled for those ages 50+ over the past four years (18 percent in 2014 vs. 7 percent in 2010)

What's more, in an August 2014 commissioned study conducted by Forrester Consulting on behalf of RetailMeNot, entitled “The State of Digital Coupons,” an overwhelming 59 percent of respondents stated that out of all the different types of promotions a retailer can employ, digital coupons still sway them the most when it comes to influencing a purchasing decision. The study also found that 63 percent of respondents agreed that digital coupons “close the deal” for them when undecided on a purchase. Once a consumer receives a digital coupon, most are redeemed within several days. Other survey findings from the study:

91 percent of desktop users redeem a digital coupon within several days More than 90 percent of smartphone and tablet users redeem their digital coupons within several days Nearly one-third of coupons on smartphones or tablets are redeemed immediately Nearly 30 percent of consumers used a digital coupon immediately upon receiving the offer

Retailer Impact

Digital coupons continue to positively affect brand and loyalty. In the Forrester study mentioned above, nearly 7 in 10 consumers (68 percent) said they strongly believe that digital coupons have a positive impact on a retailer's brand, and 68 percent also state that coupons generate loyalty.

Similarly, 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 combatting shopping cart abandonment.