RevTrax® Study Pinpoints Top Cities, Regions and Demographics for Digital Coupons
NEW YORK, December 13, 2012 - RevTrax®, the leading omnichannel promotions platform for connecting digital media with offline sales, today released the results of a four-month digital coupon study. Based on millions of real-world digital coupon views and activations, the study revealed key demographic groups and geographic areas that are most likely to activate digital coupons.
Five cities stood out as model locations for executing digital coupon campaigns. They are Charlotte, N.C.; Rochester, N.Y.; Raleigh, N.C.; Virginia Beach, Va. and Huntsville, Ala.
Representing several of the study’s top five demographic factors that drive digital coupon use, North Carolina is the optimal U.S. state for digital coupon activations, followed by Virginia, Pennsylvania, Florida and New York. The RevTrax study additionally found that the South is the best U.S. region for digital coupon activations, followed by the Northeast, the West and the Midwest.
Focused on digital coupons that are only valid for in-store redemption, RevTrax’s study cross-referenced aggregated, non-identifiable coupon activation data from millions of digital coupons issued by RevTrax brand and retail customers between January and April of 2012. The study then cross-referenced coupon activation data with a host of U.S. Census data, including location, population, household type, age and gender.
According to the RevTrax study, five demographic groups stand out as most likely to use digital coupons, driving an average lift of almost 4% in digital coupon activations. These demographic groups include:
- Female-dense areas: these geographic areas have a higher percentage of females and a lower percentage of males. Female-dense areas are the most likely demographic to use digital coupons, demonstrating a 4.7% increase in digital coupon activations.
- Compact geographic areas: these geographic areas are small in geographic size and tend to be more densely populated. Compact geographic areas are the second most likely demographic to use digital coupons, demonstrating a 4.3% increase in digital coupon activations.
- Densely populated areas: these geographic areas have high populations, a high number of housing units and a high number of households. Densely populated areas are the third most likely demographic to use digital coupons, demonstrating a 4.2% increase in digital coupon activations.
- Family-friendly areas: these geographic areas are high in percentage of family households with children, population per household and population per family. Targeting family-friendly areas has demonstrated a lift of 3.7% in digital coupon activations. Large families are the fourth most likely demographic to use digital coupons.
- Senior-dense areas: these geographic areas have a higher percentage of population over 64 and show a higher median age. Seniors are the fifth most likely demographic to use digital coupons, demonstrating a 2.4% increase in digital coupon activations.
Study results also revealed that targeting 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 RevTrax study also analyzed how household income impacts digital coupon activations. Study results demonstrated 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. Alternatively, areas with lower median incomes use far fewer digital coupons, activating approximately 40% fewer than those at or around the median income level.
“Our technology has long given our customers direct insight into how digital coupon campaigns are driving in-store sales,” said Jonathan Treiber, co-founder and CEO, RevTrax. “The study we’re releasing today demonstrates the measurement potential of digital coupons, which gives marketers a new understanding of consumer behavior, campaign performance and ultimately helps drive better targeting and better ROI.”
Marketers work with RevTrax to discover and measure digital promotion performance data – to prove and improve digital marketing’s impact on in-store sales. Its scalable enterprise solutions provide promotion intelligence across all digital channels and devices. Founded in 2008, RevTrax is headquartered in New York City.