Juniper Research says that consumers will redeem $91 billion in digital offers by 2022, up from $47 billion in 2017. Almost 60% of US internet users redeemed a digital offer or code at least once in 2016. And, three quarters of consumers spend $10-50 more than planned when they use a digital promotion. In short, digital promotions are big business.
The biggest question for marketers is neither whether brands will continue to offer offers or if consumers will continue to use them. The real question is what digital channels will drive the additional growth in digital offer redemption.
At RevTrax, we have delivered millions of digital promotions in the past year. We can measure path-to-purchase insights, and view this redemption data through a variety of different lenses. Where did customers most engage? Which categories saw the strongest redemption?
By aggregating hundreds of millions of data points, anonymized across millions of individual customers and hundreds of brands, we can understand how redemption rates vary across categories (i.e. Kids, Pet, Health, Home, Personal Care, and more), but also how promotions perform across marketing channels.
In a promotions benchmarking report that we published in June 2018, some results were self-explanatory. For example, the channels of Search (28%) and Brand Websites (27%) drive the most promotional performance, with social and email not far behind. Intuitively, this makes sense, since most brand oﬀers reside on a brand’s Website, and Search is the paid media source most closely linked to driving brand traﬃc.
Jonathan Treiber is the CEO & Co-founder of RevTrax