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2020 was anything but “business as usual.”
Nowhere was this more apparent than in online retail.
Like everything else, statistics on digital coupon statistics have changed dramatically during the COVID-19 pandemic.
While retail was already seeing a shift from brick-and-mortar stores to ecommerce, 2020 stomped on that gas pedal.
COVID-19 forced consumers to turn to the digital marketplace for everything from clothing to groceries.
2020 was also a year marked by financial instability for many households.
Couponing has always been an important driver of retail sales.
Increased competition from other online retailers and the uncertain economy means that, going into 2021, coupons can be a make-or-break for online consumers.
In 2021, online shoppers who use coupon codes are predicted to spend 24% more than shoppers who don’t. Additionally, 29% of shoppers will purchase an item that they didn’t originally intend to buy if there is a steep discount.
COVID-19 changed everything for online consumers in 2020. 60% of online shoppers in 2020 reported that discounts were even more important in deciding whether or not to make a purchase after COVID-19.
With the dramatic shift toward ecommerce from brick-and-mortar stores last year, coupon usage followed suit.
For the first time ever, digital coupon usage in 2020 exceeded paper coupon usage - 73% of shoppers used digital coupons vs. 71% using paper coupons**.**
A prime example is Walgreens, who in 2020 shifted their printed circulars to online-only and saw an 80% increase in redemptions.
AI is also changing the way retailers deliver coupons to consumers. With AI, tailored digital coupons can be sent to consumers within 24 or 48 hours, vs. days or weeks with print coupons.
So where are Millennials finding digital coupons?
Data shows Millennials using a wide range of sources including store websites, social media and apps. When it comes to coupon websites in 2020, 94% of Millennial parents and 79% of Millennials as a whole reported using coupon websites to search for discounts - versus only 53% of baby boomers.
As competition for eyeballs in eCommerce grows fiercer, coupons can be a valuable tool in finding a new audience for your brand.
Millennials have grown up in a digital world, so it’s no surprise that they are more likely to use digital coupons than their Baby Boomer parents - in 2020, 88% of Millennials used paperless discounts, vs. only 64% of Baby Boomers.
(Source: Juniper Research)
We are increasingly doing everything on our mobile devices, and using coupons is no exception.
Not only are we leveraging our coupons on mobile devices more, we are also leveraging them for price comparisons in real-time. 93% of Millennials use their mobile device to compare prices while shopping for an item in a brick-and-mortar store.
Digital couponing also affects which brick-and-mortar stores in which consumers choose to shop: 63% of shoppers said that they choose which stores to shop in based on whether or not they offer digital coupon redemption.
Find more statistics at Statista
One of the starkest shifts in digital couponing and shopping behavior in 2020 was in the online grocery delivery vertical.
When deciding on an online grocery retailer, 60% of shoppers look at online discounts before deciding on which one to order from. In contrast, only 40% of shoppers compare offers before deciding on a brick and mortar grocery store.
Grocery stores seemed to be some of the last vestiges of brick and mortar retail, but that is quickly changing. Nielsen predicts that 70% of consumers will shop for groceries online within 7 years.
2020 was far from a typical year—it had dramatic impacts on the way we shop and search for discounts.
As we head into 2021 and beyond, digital coupons become an increasingly important tool for retailers to keep up with the changing times.