Coupon Statistics In 2024: Usage and Redemption Rate
Coupon marketing has become indispensable as a strategy for driving sales and enhancing brand loyalty. With 90% of consumers using coupons, they're undoubtedly a key engagement tool in retail.
Retailers and brands harness the power of discounts and offers to attract and retain customers effectively. The profound impact of coupons on consumer decision-making and brand engagement is backed by compelling statistics and trends.
This post explores the latest coupon marketing statistics that will help retailers and marketing professionals understand the consumer demographics and usage behavior in the sector.
Coupon Statistics 2024 (Editor’s Picks)
- Shoppers worldwide are likely to redeem over 700 million coupons in 2024.
- Over 80% of Americans have signed up for promotional emails specifically to receive digital coupons.
- 50% of consumers are more likely to visit a store if they receive a coupon.
- 93% of U.S. shoppers consider discounts and offers as important factors when buying from a retailer or brand.
- 85% of shoppers are willing to exchange their data for discounts.
- 77% of shoppers say having coupons can influence where they shop, and 48% say they can speed up the decision-making process.
- 86% of online shoppers are more likely to try a new brand just because they offered a coupon.
Coupon Usage Trends 2024
It is forecasted that consumers globally will redeem over 700 million coupons this year, most of which will be used for household-related shopping. Consumers discover most of the coupons on social media groups and communities.
How many people use coupons?
As of July 2024, 90% of Americans have used coupons in the past 12 months in some way at least once.
7 out of 10 American shoppers seek coupons before purchasing online.
Data reveal that 48% of consumers are more likely to make a purchase sooner to use a coupon, and 38% are willing to buy a more expensive product when offered a discount?
The global market for mobile coupons was estimated at USD 596.4 billion in 2023 and is projected to reach USD 1.6 trillion by 2030, growing at a CAGR of 12.7%.
Digital coupon usage statistics
Over 177.9 million American consumers redeemed over 725 million digital coupons in 2023, up by 7.4% from the previous year.
Digital coupons now account for half of all the coupons redeemed, while paper coupons are down to only 7% of the total.
- Millennials are the most avid users of digital coupons, with 70% preferring them over paper coupons.
- 93% of digital coupon users redeemed coupons with a smartphone.
How many people sign up for coupons on websites?
Over 80% of Americans have signed up for email offers specifically to receive digital coupons and discounts. 46% of US consumers also said that they search for coupons online, and 34% use coupon websites.
Additionally, the use of social media platforms like Whatsapp and Instagram channels for finding and sharing coupons is a growing trend among consumers.
Approximately 90% of major online retailers have partnerships with coupon websites, highlighting the importance of these platforms in consumer shopping behavior
Mobile devices also play a significant role, with 65% of consumers preferring to access coupons on their smartphones and 75% of millennials favoring text messages for receiving promotional offers.
How many people will exchange data for discounts?
85% of shoppers are willing to exchange their data for discounts.
The majority of consumers are open to sharing their email addresses (85%), gender (70%), and name (60%) in return for discounts.
Moreover, a considerable number are willing to disclose their birthdate (48%), occupation (43%), and home address (32%).
7% of U.S. shoppers say that they are not willing to provide any information in exchange for discounts.
What is the average coupon redemption rate in 2024?
The average coupon redemption rate in 2024 is 0.9%. That's very close to 2023’s figure, when a total of 84 billion coupons were distributed, and 722.4 million coupons were redeemed despite a significant 38.5% drop in distribution from the previous year.
Digital coupons tend to have higher redemption rates compared to paper coupons, with mobile coupons particularly showing strong performance. Mobile coupons are redeemed at rates that are 10 times higher than their paper counterparts?
The average redemption rate for digital coupons can vary depending on factors such as the industry, target audience, and timing of the campaign. However, a coupon redemption rate of 7% or higher is generally considered to be a good result.
Source: Coupons in the news, Capterra.
96% of Americans search for a promo code or a digital coupon before making an online purchase
9 in 10 American shoppers search for a promo code or digital coupon before making an online purchase, while only 4% say they never do.
93% of digital coupons are redeemed on a smartphone
9 out of 10 American shoppers redeem coupons on their smartphones. This comes as no surprise as the majority of the US shoppers make their purchases through smartphones. This preference is notably higher among women, with 70% indicating they shop primarily on their phones. Similarly, 70% of individuals aged 18 to 29 also prefer using smartphones for online shopping
What are the Most Effective Digital Platforms for Coupon Distribution and Redemption?
- 42% of Americans use Facebook to find coupons, with 18% preferring Facebook Groups. Instagram and YouTube are used by 30% and 25% of consumers, respectively.
A good share of shoppers also join Telegram channels to get hands on updated offers and coupons.
- Load-to-card (L2C) Platforms see a 27% increase in coupon redemption.
- Email Marketing remains a direct and personalized channel for coupon offers, with high engagement rates. The overall average open rate for emails is 39.7%, with a 1.0% click-through rate (CTR), indicating high engagement rates for email marketing campaigns.
Source: CapitalOne Shopping, FinMasters, Supermarket News
What Do People Use Coupons For?
Coupons are widely used for a variety of goods and services, but the most searched coupon category in the U.S. is household items.
Data reveals that 46% of American shoppers look for household-related coupons.
Some other top categories include restaurants, groceries, electronics, and fashion.
How much do people save with coupons on average?
An average American household could potentially save $1,465 annually if they use online coupons.
Consumers could save an average of $272 on household items, with home improvement and furniture sites offering significant discounts and coupon incentives.
The largest percentage of savings, 8.6%, is in personal care and beauty items.
For travel, the savings rate is lower at 2.2%, but the average savings per purchase are highest for this category, at $41.05 per purchase.
Americans can cut their grocery and food expenses by $316 simply by using online coupons.
Source: FinMasters
Coupon usage in the U.S. by demographics
This section has data on gender, age groups and generations of coupon users.
Women are more likely to use coupons than men.
14% of females always use coupons while online shopping, compared to only 8% of men.
Here is a table showing the usage frequency of coupons while online shopping among women and men:
| Usage Frequency | Women | Men |
| Always | 14% | 8% |
| Often | 28% | 24% |
| Sometimes | 33% | 34% |
| Rarely | 16% | 21% |
| Never | 9% | 13% |
Source: Statista
Coupon Usage Demographics
Millennials are more likely than other generations to search for online coupons for at least half of their purchases. 70% of Millennial shoppers prefer digital coupons while shopping with 67% of women and 49.9% of men doing so.
48.8% of females aged 55 to 70 also search for coupon codes at least half the time while shopping. Women aged 22 or under do so 52.2% of times.
How Coupons Influence Purchasing Decisions
- 86% of online shoppers are more inclined to try out a new business if they have a coupon.
- Up to 80% of shoppers are willing to "go the extra mile to find the best deals, and 40% feel "smart when they discover the best offers.
- 39% of consumers buy more than they intended when they have a coupon.
- 67% will make an unplanned purchase because of a coupon.
- Shoppers who use coupons end up spending 35% more than those who do not use them.
- 29% bought a particular brand they would otherwise not buy because they were offered coupons.
- 93% of consumers would make repeat purchases at a retailer that offered good deals and discounts.
- 75% of Americans who abandon their online shopping carts are influenced by cost and lack of coupon discounts.
- Over 65% of shoppers have indicated that a great deal on a product is more important to them than excellent customer service.
Sources: CapitalOne Shopping, Blackhawk Network, FinMasters, Fortunately
From Coupons to Conversions (Case Study)
Let’s take a look at JCPenney's strategy, which demonstrates how businesses have effectively used coupons to increase sales, build brand loyalty, and connect with their target audience.
JCPenney's Coupon Strategy Analysis
JCPenney has a long history of using coupons to attract customers, particularly during challenging economic times. The company often includes coupons in its marketing emails, physical mailers, and mobile app. For example, offering $10 off on a $50 purchase during key shopping seasons like back-to-school and holiday periods.
Background: In 2011, the company, led by CEO Ron Johnson, decided to eliminate coupons in favor of an "everyday low pricing approach.
Challenge: This change was not well-received by JC Penney's loyal customers, who were accustomed to hunting for bargains with coupons.
Negative Impact: This resulted in a decrease in store traffic and a significant loss in sales by 25%, culminating in a net loss of nearly $985 million.
Reversion to Original Strategy: The company eventually returned to its traditional marketing strategy, reintroducing coupons and sales to attract customers and cater to the demographics that frequented their stores.
This case study highlights the importance of understanding customer preferences and adapting marketing strategies accordingly. JC Penney's experience serves as a valuable lesson for businesses aiming to strike the right balance between innovation and customer loyalty.
Source: HBS, Slideshare, CNN Business
Wrapping Up
The landscape of retail marketing is undergoing a significant shift, driven by the increasing influence of digital coupons and the rise of mobile commerce. With 90% of consumers using coupons and a projected global market for mobile coupons estimated to reach USD 1.6 trillion by 2030, the impact of coupons on consumer behavior is undeniable.
As businesses continue to leverage the power of discounts and offers, it’s essential to recognize the potential for substantial savings and heightened brand loyalty for consumers. This trend is likely to continue, making coupon marketing an indispensable strategy for businesses aiming to boost customer engagement and loyalty in the evolving retail landscape.
