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Study Shows How Demographics Impact Digital Coupon Conversion Rates

Written on
Aug 28, 2012 
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PR  |

RevTrax®, the leading omnichannel promotions platform that empowers brands and retailers to securely drive and measure in-store sales through any digital marketing channel, today announced the results of a four-month study of digital coupon activations across its roster of hundreds of brand and retail customers.  By assigning real-world metrics to digital coupons that are used exclusively to drive in-store sales, the study reveals important insights that brands and retailers can utilize to improve online consumer engagement activities.

The study cross-referenced aggregated, non-identifiable digital coupon activation data from millions of digital coupons issued by RevTrax clients between January and April of 2012, with a host of demographic data, including location, income, age, household, education, political affiliation and employment.

Among the study’s findings:

  • Earning power boosts digital coupon performance:  On average, a 10-percent increase in median income yields a 1.59-percent increase in digital coupon activation rates for retail coupons in urban counties.   Increased median income also correlates with higher activation rates for retail coupons when compared to CPG coupons (whether urban or rural).
  • Older customers are more likely to embrace digital coupons: On average, a 10-percent increase in median age yields a 2.49-percent increase in activation rates for retail coupons in urban counties.  Increased median age also correlates with higher activation rates for retail coupons when compared to CPG coupons (whether urban or rural).
  • Women in urban areas continue to outpace men with digital coupon usage:  On average, a 10-percent increase in the number of males per 100 females yields an 11.86-percent decrease in the activation rate for retail coupons in urban counties and a decrease of 2.46-percent in activation rates for CPG coupons in urban counties.
  • College-educated consumers activate more digital coupons (urban counties):  On average, a 10-percent increase in bachelor’s degree percentage yields a 0.70-percent increase in activation rate for retail coupons in urban counties and an extra 0.18-percent increase in activation rate for CPG coupons in urban counties.
  • Employed consumers activate more CPG digital coupons: On average, a 10-percent increase in unemployment rate yields 0.46-percent decrease in activation rate for both CPG coupons in urban counties and CPG coupons in rural counties.
  • Millennials use fewer retail digital coupons: On average, a 10-percent increase in percent of people aged 15 to 24 resulted in a 1.20-percent decrease in activation rate for retail coupons in urban counties and a 1.35-percent decrease in activation rate for retail coupons in rural counties.

“The data we’re releasing today illustrates digital’s ability to provide brands and retailers with more precise and detailed insight into the relationship between coupons and consumer behavior than traditional direct marketing has provided over the last several decades,” said Jonathan Trieber, co-founder and CEO, RevTrax.  “Marketers have begun to realize that digital advertising should not be aligned just with ecommerce marketing budgets, but also with brick & mortar budgets, especially given that 90 percent of retail sales still take place offline.”

RevTrax works with some of the nation’s leading brands and retailers, including Kimberly Clark, Sears, Walgreens, Toys “R” Us and True Value to drive and measure in-store sales via digital coupons. The full digital coupon study can be accessed at www.RevTrax.com/DemoStudy2012.pdf.





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