CityGro’s Digital Loyalty Programs Trump Traditional Redemption Rates


CityGro’s Digital Loyalty Programs Trump Traditional Redemption Rates

By - August 22, 2014

Consumers love coupons and coupons drive sales, it’s a win-win really. Most methods of traditional coupon redemption rates are between 0-3%. On the other hand, CityGro has a redemption rate of 8-12% or higher.

Shopper research reveals that “interest in coupons remains extraordinarily high, especially with new/emerging coupon user profiles (e.g., millennials, students, men)” (Inmar shopping study).

In 2012, 310 billion coupons were distributed; approximately 3.0 billion coupons were redeemed. That means less than 3% of all coupons are actually taken into the store and redeemed. Which brings up the question; why are consumers not redeeming coupons?

In June 2013, Google surveyed 150 retail executives on the benefits, practices, and progress of digital couponing. The graph below shows how retailers are delivering coupons to consumers.


Digital Loyalty Programs Help Businesses See Higher Rates of Return

Based on the graph above, digital media is the top method to deliver coupons to consumers.

CPG average redemption rates

Based on the CPG Average Redemption Rates shown above, Instant On-Pack had the highest averages and free standing insert and newspaper had the lowest. Consumers want instant coupons and it is not surprising that Instant On-Pack and Internet Print at Home redemption rates are higher. Paperless coupon redemption saw an average of 8.7%  in the first half of 2013. (NCH Marketing Services, Inc. Mid Year 2013 Coupon Facts Report).

“When choosing between two competing products, an instant redeemable coupon on one may be the deciding factor” (Inmar shopper study).

Sending consumer relevant information results in a better response rate. According to the Inmar Shopping Survey, shoppers want to do less work to find and use coupons. About 68% of shoppers report they don’t always find products for the coupons that they do have in store. It’s clear that shoppers are in favor of easier couponing. Therefore it is up to businesses to make it easy for them and with CityGro’s help that is definitely possible.


How CityGro generates better responses:

  • We are targeting people who have been to your store at least once. They know your product, your location, parking, service, etc.
  • We are targeting people who have chosen to connect. We don’t spam people, we simply reconnect with the people who have asked to connect.
  • Often times we target people with text messages. Texts messages have a 98% read rate compared to an email read rate of 20%. So they are 5 times more likely to have a response simply by the amount of people that read them.
  • We target based on customer data. If we know they come at lunch, we offer lunch incentives. If they come at dinner, we offer dinner incentives. Our goal is relevant, data-driven marketing.


We try to make things as easy as possible. We give consumers what they ask for. Based on the research found, we know our targeted, digital loyalty program can help businesses triple their coupon redemption rate.


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