Promotions, Coupons and Discounts Drive Business

Coupons and Offers Drive Sales for SMB’s

Browsing for Mobile CouponsA new report by BIA/Kelsey estimates that Nearly One-Third of Annual Sales Driven by Promotions, Coupons, Deals and Discounts.

Loyalty Programs are also found to be used by 44.3& of SMB Plus Spenders.

According to the latest wave of BIA/Kelsey’s Local Commerce Monitor™ (LCM) survey of small and medium-sized businesses (SMBs), higher-spending SMBs—those that spend more than $25,000 annually on advertising and promotion—estimate 31.7 percent of their total sales in the next 12 months will come from promotions such as discount deals, daily deals, coupons, or similar discount offers, up from 22.9 percent in 2013.

“The significant increase in the use of discount promotions by Plus Spenders underscores how promotions and sales are becoming baked in to the business model for many larger SMBs,” said Steve Marshall, director of research for BIA/Kelsey. “Consumers have an increasing array of tools at their disposal for finding great deals. And SMBs are making sure they have something to offer.”

Click here to view an excellent graphic highlighted the findings of the report.

At ActiveData, we have seen this trend on the rise over the years. Our clients have seen increased redemption rates of their mobile offers and coupons compared to traditional print coupons. We continue to work with our clients to leverage the power of mobile to drive business through Text Marketing, Mobile Websites, Mobile Apps, Loyalty Programs, Local Search Optimization and our new Mobile Offer Platform.

Further, a report from eMarketer states that more than half of US adult internet users, or 102.5 million people, will redeem a digital coupon via any device for either online or offline shopping. With Mobile Coupons reported to get 10 times the redemption rate of traditional coupons we only see the usage increasing over the coming years.

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