Study: How can you get store shoppers to use coupons?

Retailers looking to boost in-store redemption rates for coupons should consider implementing a particular leading edge technology.



A new study from Juniper Research, “Mobile & Online Coupons: Redemption, Loyalty & Consumer Engagement 2015-2020,” has found that nearly 1.6 billion coupons will be delivered annually to consumers via beacon technology by 2020, up more than 10 times from 11 million in 2015.



The study found that several leading U.S. retailers have already deployed beacon networks, with Macy’s having installed more than 4,000 in its stores.



It also indicated in-store beacons have consistently generated high redemption rates. Juniper advises that locating beacons outside storefronts, in locations such as buses, taxis, shopping malls and airports, drives both customer store visits and engagement.



The study also advised that growth in and greater consumer awareness around near field communications (NFC), which supports mobile wallet applications such as Apple Pay, means retailers need to incorporate NFC in all stages of the customer lifecycle, This includes loyalty and engagement.



However, Juniper cautions that the use of beacon technology is still work in progress, with many retailers concerned that excessive, indiscriminate messages ‘pushed’ by the beacon could be perceived as intrusive and damage their relationship with the customer. With that in mind, the study suggests that retailers follow the lead of Target, which has stated that it will limit the number of beacon push notifications – including coupons and special offers – to two per visit.