Couponing at its Peak: Exploring the Latest Techniques and Advancements
In the ever-changing landscape of retail, one sector that's experiencing remarkable growth is online couponing. According to a deep dive by Xanayra Marin-Lopez, a Retail Dive staff reporter, this digital transformation is driven by consumer behavior trends and the burgeoning e-commerce market.
The digital coupons market, valued at around USD 8.87 billion in 2024, is projected to reach over USD 10.5 billion by 2025. By 2032, it's expected to expand to a staggering USD 36 billion, reflecting a robust compound annual growth rate (CAGR) of over 19%.
This growth is underpinned by factors such as increasing smartphone penetration, e-commerce adoption, and consumer demand for savings and personalized shopping experiences. Retailers are harnessing AI and machine learning to deliver personalized digital coupons based on consumer preferences and behavior, enhancing coupon relevance and redemption rates.
For consumers, coupons remain highly popular. About 90% of U.S. consumers admit to using coupons, and online shoppers increasingly expect savings opportunities. Coupons integrated into shopping apps, websites, and social media marketing channels improve accessibility and engagement, offering real-time, targeted discounts that boost purchasing power and shopping satisfaction.
From a retailer's perspective, digital coupons help businesses boost sales, increase customer engagement, and foster brand loyalty in a competitive digital marketplace. Deal and coupon aggregators have increased market influence, while traditional loyalty programs have declined, signifying a shift towards value-driven consumer validation through discounts. Retailers are investing more in partnerships with content review and deal coupon platforms, adjusting commission payouts to reflect the effectiveness of these channels.
Coupon marketing also helps reduce cart abandonment rates, a major challenge in e-commerce, leading to more completed sales. The affiliate marketing industry, often intertwined with couponing, is sizable and growing, with expenditures reaching $15.7 billion globally in 2025.
In summary, online couponing is a thriving and evolving sector, providing significant benefits for consumers seeking discounts and for retailers aiming to drive conversions, reduce cart abandonment, and maintain competitive advantage by personalizing offers and leveraging digital ecosystems effectively.
This episode of The Backroom, produced and edited by Caroline Jansen, delves into the current state of couponing and its implications for consumers and retailers. The Retail Dive team, including senior reporter Daphne Howland, discusses Marin-Lopez's deep dive into couponing.
Interestingly, despite the sources for finding coupons having greatly diminished, discount-hunting has continued to surge. Coupon-clipping has moved online, and new ways of couponing are led by influencers who share discounts with their public.
As the holiday season approaches, shoppers plan to prioritize their budgets by cutting back on everyday purchases. According to a survey, 33% of holiday shoppers plan to spend less this year. Customers express a desire for rewards and exclusive perks from loyalty programs, signifying the importance of these initiatives in retail strategies.
The podcast episodes can be found on their website and are available on Apple Podcasts, iHeartRadio, and Spotify. Despite the shift towards digital couponing, a significant number of couponing communities continue to thrive, underscoring the enduring appeal of savings opportunities in the digital age.
- In the digital age, influencers are leading new ways of couponing, offering discounts to their followers, even as traditional sources for finding coupons have diminished.
- As shopping habits evolve, home-and-garden and lifestyle products are gaining popularity, and consumers are increasingly seeking deals-and-discounts on these items.
- AI and machine learning are being used by retailers to deliver personalized digital coupons, aiming to enhance coupon relevance and boost sales, especially during the war-on-sales seasons like holidays.
