Digital coupon redemptions will surpass $90 billion by 2022, according to new research from Juniper.
The study found the value of digital coupon redemptions will surge to $91 billion by 2022, up from $47 billion in 2017.
The research, Mobile & Online Coupons: Leading Vendors, Technologies & Market Forecasts 2017-2022, found that the dominant mobile channel will be led by in-app coupon redemptions towards the end of the period, overtaking SMS- a channel which also continues to grow markedly well.
The largest volumes of coupon redemptions will be generated via app-based platforms by the end of the period, as providers see increased preference for the loading of both one-time and loyalty-based incentives for use in store.
The research identified three stand-out technologies showing significant disruptive potential:
- QR Codes
- Invisible payments
For the first time, Juniper has quantified the volume of chatbot coupons as 25 million this year, with this set to reach 1.1 billion by 2022. The technology will enable greater personalisation of offers; particularly through use via social media, and at a fraction of the cost of using human operatives, and will aid in driving commerce transactions both online, and in store.
Additionally, technologies which streamline the shopping experience, such as invisible payments, or provide additional information and linked offers, such as with QR codes, will greatly enhance the in-store experience, driving footfall for physical retailers.
The research also found that mobile will account for nearly 80 per cent of all coupon redemptions by 2022. It identified the importance of targeted channels; in particular SMS.
Research author Lauren Foye said, “SMS remains a vital channel in reaching consumers, whereby a phone number acts as a unique ID in delivering one-time offers. Consumers are more receptive to personalised offers delivered via this channel, being protected by stringent regulation in Western markets which prevents high volumes of spam, compared to arguably less customer-minded channels such as email.”