When used correctly, coupons are a simple and effective way for merchants to price-discriminate customers and maximize sales. However, for merchants stuck in an offline mentality, online coupons can dramatically erode margins and increase the risk of cart abandonment.
Consumer online spending habits continue to evolve, and as average shoppers look for new ways to stretch their budgets during tough economic times, online coupon usage has grown. In fact, online searches for coupons and offers have increased by 58 percent over the past year, according to a recent study from Interpublic Group.
Savvy shoppers are becoming more familiar with online coupons and the potential savings they can provide. On the surface, this presents a major opportunity for online merchants that use coupons as a means to market and promote their products, but a closer look reveals a dated and ineffective process…