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How Digital Coupons Affect Online Shopping Preferences

As of today, very few shoppers expect to pay full price for products and services when purchased online. With so many retailers now offering new customer discounts and digital coupons, it's likely a coupon code exists to apply towards your next online purchase.
Did you know that more than 64% of online consumers wait to buy things until they go for sale, whereas more than 59% search for promo codes before buying anything online? Also, more people are signing up for price tracking and price comparison services. The perception of value for a shopper is shifting for good.

The pandemic has amplified the need to be effective and efficient with time and money for both online and in-store shoppers. Saving money with coupons and discounts mattered pre-pandemic, but it's a clear priority now. Almost 80% of shoppers look to save money by shopping where prices are lowest, while 72% want to leverage coupons and discounts to save. While grocery shopping, consumers' priorities fall for saving over convenience. They prepare for shopping like never before, from comparing prices online to searching for deals or coupons. The store preferences now directly depend on the discount and deal it can offer.

Internal client case: During Xmas high season, the number of extension users increased by 10%, after the Auto Apply Coupon product has been implemented.

  • Mobile retail
The use of smartphone/ mobile devices to save on shopping trips has increased during the pandemic. The shift to online in the retail sector has never been more apparent. Mobile devices are not only being looked at to aid the shopping and transaction process, but they are increasingly being used to add value along the consumer's buying journey, be it online or in-store. The entire coupon "experience" is now available on mobile: access, storage, redemption. The recent research found that mobile will account for nearly 80% of all coupon redemptions by 2022. This means that this preference is on the rise. The power of mobile coupons to drive sales holds true both for existing and new customers—90% of respondents said that a high-discount coupon received from a retailer that they rarely or never shopped at was "likely" or "highly likely" to attract them. High-value coupons will get consumers back in your stores. So the quality of the online experience they get now directly affects the long run.

  • Engagement
Online shopping grew by at least 10% for each sector: food, households, health+beauty care. Interestingly, there are consumers who wish to shop online, but find that brands aren't keeping pace with their needs. For instance, online grocery shoppers are highly invested in the use of digital sources for value while fulfilling their purchase needs, with 80% using digital resources to find discounts, coupons, or product information. Use of these resources has held steady during the pandemic, with growth in visits to manufacturer websites and apps and referencing product reviews as they shop.

Brands that are providing the option of online coupons may find their customers ready to shop, with 32% of consumers saying coupons will drive them online to make a purchase. The current trend/preference for coupons and discounts has spread over physical stores. Based on the research, 81% of shoppers make a purchase based on a discount in the store. However, most consumers who've increased online shopping for groceries will continue current behavior.

  • Experience
For today's modern consumers, coupons and discounts enable experiences beyond the practical benefit of financial savings. Despite the pandemic, 44% of consumers are still on the lookout for new things to try. Many consumers treat shopping as a leisurely experience and revel in the discovery of new products. For other occasions, consumers want to shop more efficiently and wish that advertising and marketing could be more helpful. They are now willing to see more guides and life-hacks on how to use the product.

Moreover, a significant majority of consumers like to get their shopping done as quickly as possible. Affinity for repeat purchases has led some consumers to use auto-replenishment services.

Apart from 'new' experiences, they will need an experience that reinforces safety, the one that can be great anywhere.

Around 75% of consumers enjoy discovering new products based on deals received from brands. All you have to do is to provide this opportunity and make their shopping experience efficient and exciting.

  • Post-purchase behavior
Once the purchase has been made, the journey is hardly over. The engagement and the relationship with consumers can and should extend beyond the purchase. For example, 31% of all consumers scan receipts to receive cashback or points, 43% of Gen Z, and 51% of millennials do this. Likewise, just under a quarter of all consumers share brand reviews detailing how much they've saved, but 33% of Gen Z and 45% of millennials do so.
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Data taken from: Valassis; PWC report

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