Study: Affluent Consumers More Likely to Use Digital Coupons Than Lower Income Groups

Digital coupon marketing provider

RevTrax has released study findings that include several months of digital coupon activation and in-store redemption data across the US. The company identifies the leading locations and demographic trends tied to digital coupon activity.

The data in the study were collected in Q2 2012 and based on millions of online to offline transactions.

The top digital coupon cities according to RevTrax are Charlotte, N.C.; Rochester, N.Y.; Raleigh, N.C.; Virginia Beach, Va. and Huntsville, Ala. The top states overall were North Carolina, Virginia, Pennsylvania, Florida and New York.

The company also said that there were five top demographic categories that “stand out as most likely to use digital coupons.” Broad though they are they are the following:

1. Female-dense areas

2. Compact geographic areas

3. Densely populated areas

4. Family-friendly areas

5. Senior-dense areas

As a best practice arising from the data, RevTrax advises:

[T]argeting two or more of these demographics can increase digital coupon activations by a factor of more than 20%. For example, targeting areas that are family- friendly, densely populated and female-dense increases digital coupon activations by more than 20%. A digital coupon campaign’s conversion rates can be expected to mirror such an increase, dramatically increasing campaign ROI.

The common assumption among many is that consumers interested in coupons are going to fall into lower income groups. While that may be somewhat accurate in a paper coupon scenario, the opposite is true with digital coupons.

RevTrax confirmed other, existing data about digital coupon interest and usage. The company said that “areas with higher income levels use the most digital coupons, activating nearly 100% more coupons than those at or around the median income level.”