Paper vs. Digital

The days of flipping through catalogs and magazines to find paper coupons to cut out are fading away. With the rapid growth of smartphones, it is no surprise that the popularity of digital coupons has also increased significantly. A simple search on a mobile device can lead you to various discounts from your favorite brands, stores, and restaurants. Most merchants now accept digitally presented barcodes for coupon redemption, allowing a seamless interaction between a customer’s personal phone and the store’s point of sale system.


The goal of coupons, whether digital or paper, will always remain the same: increase the likelihood of a customer entering a store to purchase merchandise or service and in return, increase the retailer’s profits. The great advantage of a digital coupon is that retailers now are able to easily incorporate themselves into a consumer’s mobile phone, whereas a paper coupon often gets forgotten at home or lost in the wind. With mobile coupons, marketers now have a direct line of communication with their customers encouraging them to come into their store and actually use that coupon. As a result, digital coupons have a 77% redemption rate, significantly higher than paper coupons.


Coupons stored in the Mobile Wallet offer powerful capabilities such as push notifications, location awareness, and the ability to update promotions. Retailers have much more to gain than printing a coupon in a magazine. They are equipped with a powerful mobile engagement tool that allows them to have more control over their promotions by intelligently targeting customers that have their coupon stored in the Mobile Wallet. For example, a store owner that distributes Mobile Wallet coupons is able to set up a geofence around their store. This will then trigger a push notification on the customer’s lock screen alerting them to use the coupon stored in their Wallet. They can also send out reminders in the form of push notifications to customers who have not yet used a coupon reaching the expiration date. Research has shown that expiration reminders make consumers 64% more likely to use a coupon. This is a feature paper coupons simply just cannot compete with. Overall, digital coupons offer a win-win situation for both customers and business owners. Consumers get special deals while businesses attract their customer base via mobile to build up a loyal relationship.

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