This is a journey from paper coupons used in the late 90s to digital coupons used in the 21st century. The couponing history has its ups and downs, though not very conspicuous.
We have gone from cutting out a paper coupon published in a newspaper to finding digital coupons online. The basic need to grab a discount on your purchase has not changed.
Today we will throw a spotlight on the evolution of the couponing industry in the USA and see what the future holds for this industry.
Early Days of Couponing
1887-1913: It was in 1887 when Coke came up with the concept of paper couponing, for the very first time. They distributed a glass of Coke at a local pharmacy. The entire couponing campaign was executed with the help of hand-written vouchers.
Between 1887 and 1913, it is believed that one in nine Americans had consumed a free Coke, encashing a coupon. If we look at the figures, almost 8.5 million people had a free drink from Coke.
Given the fact that Coca-Cola is one of the most successful multinational companies in the world, it is safe to assume that couponing marketing has worked for the company.
It was during the Great Depression in the 1930s when the couponing industry reached its peak. People, during those years, massively used coupons to majorly buy groceries. As per statistics, the usage had increased to 250%.
In fact, for quite a substantial number of years, coupons were associated with grocery shopping, because of their wide usage in the 1930s. People got their hands on these coupons from magazines and Sunday newspaper supplements.
Couponing in Modern Times
Coupons that were majorly used for grocery shopping were re-invented with the advent of online shopping. In fact, this became a major force that helped in shifting people’s purchasing habits to online from offline.
In the 1990s, the very first online coupon was issued, which increased online shopping to 20%. This gave retailers the confidence to work out their marketing campaign around coupons. In fact, retailers started finding the new scope for couponing and customize it as per different product industries.
Coupons kept gaining traction, which led to the rise of a totally new segment in the online service industry; coupon aggregators. These dedicated coupon websites started listing digital coupons issued by different websites. Customers could visit these websites and effortlessly make an online purchase while grabbing great discounts on their purchases. You could easily grab discounts using promo codes listed on the coupon’s website.
Couponing Now
With the increase in mobile usage over the decades, the usage of online coupons only grew. Now, almost 50% of shoppers claim their coupons on smaller screens and shop from specific apps.
Researchers also claim that shoppers who use discount coupons tend to be more loyal to a brand. This is the reason that every brand now centres its marketing campaign around discount coupons and digital coupons.
- Coupons are used to collect customer data
- It is used to enhance a brand’s loyalty among new customers
- Discount coupons have become a significant force in ensuring repeat purchases from existing customers
- Coupons help in ice-breaking with a new customer
The Future of Couponing
As per statistics
- Almost 90% of shoppers have already used a coupon at least once in their life
- Almost, 62% of shoppers are actively looking for a coupon before making a purchase
- In 2024, the global couponing industry reached $8.96 billion
- Coupons have an average redemption rate of 7%
All these facts indicate that the couponing market will only grow in the future. But, then what are the recent changes we can see in this market? What exactly future look like for couponing industry?
Dynamic Couponing
Coupons will be designed as per the shopping habits of different shoppers. A customer will be offered a coupon based on his/her preferences, habits, likes, and dislikes. This will ensure a high redemption rate for the coupons, ultimately leading to increased sales.
Universal Coupons
A shopper will be able to use a single coupon across different brands located in different places.
Subscription Models
Retailers will shift more and more towards subscription models where, in exchange for a nominal fee, a customer will enjoy a discount for the entire subscription period. This discount will apply to every purchase.
Coupon Websites
Couponing websites have been playing a great role in driving the online sales of different brands; this trend is not likely to change in the coming years. Some of the major coupon websites in the USA, namely CouponzGuru, RetailMeNot, Dealspotr etc. will be a driving force in the couponing industry.
Last Words
The future of the couponing industry in the USA looks extremely bright. Marketers are coming up with innovative ideas to increase the purpose and scope of coupons, in order to reach out to the maximum public online. It is up to us to witness and make use of all the innovations for our own benefit.
Data Source:
https://www.history.com/news/coupons-united-states-great-depression
https://www.statista.com/statistics/243738/top-coupon-websites-usa-vists/
