Discovering Whether the Coupon Extensions Truly Help You Save Money

When was the last time you got a coupon in your mailbox or an email from a store with a discount code? If you are like many of us, it may have been this week. Take a quick look at your inbox, you might have received some coupons today.

Coca-Cola pioneered the use of coupons starting in 1887, offering hand-written vouchers to the public entitling them to a free glass of Coca-Cola, then priced at 5 cents. By 1913, it's estimated that one out of every nine Americans had enjoyed a free Coke, marking the start of coupon culture.

Today, coupons remain a vital part of some retailers' strategies. In the past, strategic use of coupons allowed people to purchase many things at little or no cost. However, policy changes have been put in place to prevent extreme coupon stacking, the question arises: Is couponing still a good way to save money?

To answer this question, we analyzed the average rating of each coupon extension, the percentage of the reviewers who reported savings, and the amount saved to find out.

What we did

We analyzed 198,000 reviews from the Chrome Web Store for the top 10 highest-rated coupon extensions. Our study focused on the overall ratings, ratings by brands, the percentage of reviewers who reported savings, and the amount saved.

Key Findings

• More than 95% of reviewers rated the coupon extensions with 4 or 5 stars, giving an average rating of 4.7.

• Before 2019, over 40% of users reported savings using coupon extensions. This figure dropped to 33% by 2024.

• Cently stood out with 61% of its reviewers reporting savings from January 1, 2019 to April 25, 2024.

• From January 1, 2019 to April 25, 2024, users reported an average saving of $40.5 across all extensions, with PayPal Honey saving the most with an average of $45.9.

How the Pandemic and Inflation Affect Coupon Extensions

The pandemic and inflation have significantly changed how consumers shop and how retailers operate. As households face financial challenges, many consumers turn to coupon extensions to save money. Some consumers share their reviews on Chrome Web Store:

• It totally works! It's nice to know that someone is looking out for the consumer. Everything is so expensive now because inflation is at an all time high.

• Thank you for the generous rebate! With inflation as it is, it is very much appreciated!

• Saved me money in no time. Very quick and certainly helps during this inflation period of time.

In response, retailers have also recognized coupon extensions as a crucial tool to attract customers. Conor Ryan, co-founder of StitcherAds, stated that several major retailers have stopped or reduced using printed coupons. Additionally, the economic uncertainties brought on by the pandemic and rising inflation have led to an increased reliance on coupon extensions as essential tools for securing discounts and maximizing savings.

User Satisfaction and Growth Trends

In 2018, the Chrome Web Store saw a surge in coupon extensions, receiving up to 5,000 reviews per month and high ratings of 4.9. The situation has stabilized since 2021, averaging 700 monthly reviews with ratings consistently around 4.7, showing a steady engagement and satisfaction level between consumers and coupon providers.

Since 2020, disruptions in the consumer and coupon sector have been observed due to various factors like the pandemic, inflation, a downturn in consumer confidence, and supply chain challenges. Despite these obstacles, market research forecasts a strong growth rate for the global digital coupon market, reaching $29.7 billion by 2031.

How Coupon Extensions Stack Up in User Ratings Over Time

As of April 25, 2024, data from the Google Chrome Web Store highlights Rakuten as a standout among coupon extensions for its features and long-standing popularity among users. Despite some recent negative reviews, its historically high ratings have helped maintain its overall positive reputation. One user expressed appreciation for Rakuten's saving benefits, "Sure wish I would have known about this earlier in my life. I have 23 grandchildren and all the perks matter. What's not to LOVE about this offer Rakuten provides? Thanks, Rakuten." This reflects why Rakuten remains beloved by many shoppers despite some recent criticisms.

Trend in Reviewers Reporting Savings with Coupon Extensions

Coupon extensions have been a valuable tool for saving money, but user perceptions towards their effectiveness have changed over time. Before 2019, over 40% of reviewers reported savings, but this percentage dropped to 33% in 2024.

In early 2022, there was a notable decrease, primarily due to the impact of the pandemic. McKinsey's report attributed this decline to the rise of the homebody economy during the pandemic, leading to more spending on gaming, entertainment, and media.

Which Coupon Extensions Offer the Most Frequent Savings

Despite a slight decline in reviewers reporting savings with coupon extensions from 2023 to 2024, four extensions-Cently, Capital One Shopping, PayPal Honey, and CouponBirds, scored higher than the 33% average. Notably, 60.7% of Cently reviewers reported savings.

The Real Value of Coupon Extensions Amidst Inflation

The chart shows the savings reported by coupon extension reviewers. 42% saved between $5 and $20, 27% enjoyed even greater savings between $20 to $50, 11% saved less than $5, and about 2% saved more than $300.

Which Coupon Extensions Can Save You the Most

We compared the average savings reported in Chrome Web Store reviews between January 1, 2019, and April 25, 2024. Although only a limited number of reviewers reported actual savings, this data still gives us valuable insights of how effective the extensions are.

We targeted 6 coupon extensions with more than 200 reviews. PayPal Honey stands out as the most effective, saving users an average of $45.9, which is 60% higher than Cently's $29.0.

Methodology

We initiated our research by compiling a list of 10 coupon extensions with the highest number of user reviews on the Chrome Web Store, including two extensions that had been acquired. We then collected user reviews for each extension from the Chrome Web Store.

With the data in hand, we analyzed the data to determine key metrics, including the overall rating, average rating of each extension, percentage of reviewers reporting savings, and average amount saved as reported by reviewers.

NOTES:

• Number of Google Chrome Web Store Reviews analyzed: 198,000

• Our data is correct as of April 25, 2024

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