NEW YORK — In a study of digital print-at-home coupons, Knowledge Networks here found 46% of redeemers were prior non-buyers of the product, compared with 34% for traditional print FSI coupons.
Moreover, 77% of redemption volume for digital coupons is incremental, vs. 68% for print coupons.
On the other hand, digital coupons yield a lower return on investment due to their higher redemption rates and the historically lower distribution costs for print FSIs, the study found. Overall, digital coupons trail print FSIs in ROI by 18%.
While digital coupons are "transforming the coupon marketplace," the greater profitability of FSI print coupons means that “this business will not be going away anytime soon," the study said. "But as more and more coupons can be carried on smartphones and loyalty cards, digital couponing will become more ingrained and less demanding."