The coupon market is a big business, attracting significant investment. Most merchants and brands make extensive use of these marketing tools both to attract new customers and retain old customers.
The market targeted by the company is the hot market where it can create its niche. The United Kingdom is the target market of the company, and it is a place where digital coupons and vouchers have grown significantly over the years thereby creating an opportunity for the websites like ABC to enter into this segment and benefit the shoppers as well as the businesses thus helping the company itself.
As per January 2015 report of GS1UK on Digital Commerce in Retail: Mass Distribution and Acceptance of Mobile Couponing,
- Digital coupons have many significant advantages over their paper counterparts. They are less likely to be lost or forgotten and more likely to be redeemed. It is also more comfortable to target specific consumers using digital coupons, rather than paper coupons, enabling brands and merchants to control their distribution better and potentially reduce wastage.
Additionally, according to the article posted on Vertical Response in July 2014,
- The use of coupons during a shopping experience has risen from 63% to 92% in just the past five years, and online coupons have driven a lot of this growth.
- Consumers have greater access to online coupons through email, shared through social media, and online via a plethora of coupon-specific websites.
- 93% of coupon users say they’ll be very likely to use a coupon they receive in an email.
- Not only has their access to coupons grown significantly but how they fulfill them has changed as well. It is estimated that 74.1 million consumers will use their Smartphone and 68.7 million will use their tablet to present their coupon to a business.
So, there are more people using coupons, using them in different ways, and across a variety of demographics, but do they work? The short answer is YES!
Thus, the market opportunity for discount and coupon websites is as significant as the industry is set on an upward growth track.