Digital Couponing Lesson 1 Quiz

Digital Couponing Overview

• Coca-Cola was among the first companies to implement coupons, dating back to the late 19th century.
• The main goal of coupon usage in marketing is to encourage customer engagement and drive sales.

Limitations and Discoveries

• Traditional coupons face a significant limitation in reach, making them less effective in targeting a broad audience.
• The first digital coupons emerged in the 1990s, marking a shift towards technology-based savings.

Advantages of Digital Coupons

• Digital coupons provide a broader reach and easier tracking compared to traditional methods, making them more appealing for both consumers and businesses.
• Businesses can reduce costs by utilizing digital coupons, as they eliminate the need for printing and distribution.

Redemption Rates and Consumer Tools

• The estimated average redemption rate for traditional physical coupons is just 1%, highlighting their lower effectiveness compared to digital options.
• Mobile wallets allow consumers to easily store and redeem coupons using their smartphones.

Technological Impacts

• Geofencing technology enables businesses to send mobile coupons directly to customers when they are near a store, facilitating immediate engagement.
• A modern trend in coupon marketing involves using artificial intelligence (AI) to create personalized coupon experiences, enhancing the relevance for individual consumers.