Saving Money: The Continued Benefits of Coupons in 2024

Shopping is a daily necessity, and coupons play a big role in it. A survey found that 91% of Americans used coupons, with 177.9 million people using digital coupons in 2022. Today, with the pandemic waning and inflation under control, there's a question on whether coupons are still beneficial. We collected data from the Chrome Web Store on the 10 most-reviewed and highest-rated extensions with a total download of over 39 million and 190,000 comments by December 2023. Here are the key findings:

• User satisfaction has plateaued, with steady new user members and a stable rating of 4.7.

• About 30%-35% of reviewers save money through coupons with savings up to $300. Around 50% of reviewers see savings from $0 to $20 on individual transactions.

• Negative feedback mostly stems from pop-up ads, limited coupon availability, and other user experience issues.

User Satisfaction and Growth Trends

Around 2018, the Chrome Web Store saw a surge in coupon extensions, with up to 5,000 reviews per month and ratings above 4.9. Currently, the situation has stabilized, with an average of 700 monthly reviews and ratings between 4.6 and 4.7, showing a balanced approach from both consumers and coupon providers.

Since 2020, disruptions in the consumer market and the 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 compound annual growth rate of 18.6% for the global digital coupon market until 2031, reaching a market value of $29.7 billion by the end of 2031.

Consistent Coupons Savings Despite Some Drops

Over 95% of reviewers gave positive ratings of 4 or 5 stars, with more than 60,000 mentioning savings. Over the years, around 30% to 35% of reviewers mentioned saving money consistently, indicating that roughly one in three reviewers benefits from coupons.

There was a notable decrease in this percentage between 2020 and 2022, primarily due to the impact of the pandemic. McKinsey's report attributed this trend to the rise of the homebody economy during the pandemic, leading to increased spending in gaming, entertainment, and media while suppressing traditional shopping desires. Moreover, post-pandemic inflation and reduced consumer confidence have compelled more conservative spending habits, resulting in a reduced use of coupons.

Despite these challenges, forecasts predict a resurgence in 2024. This optimism is driven by expectations of retaliatory spending in e-commerce, outdoor tourism, and other sectors, indicating a potential recovery in coupon usage.

Broad Range of Savings Across Various Categories

As consumer spending picks up with the economic rebound, our analysis reveals the extensive ways and levels of savings people have achieved through coupons. Out of over 26,000 enthusiastic user reviews detailing their saved amounts, most people reported saving between $1 to $23, with $10 being a commonly mentioned amount. These savings can be seen across a range of purchases like groceries, flight tickets, accommodations, and delivery fees, highlighting a culture of meticulous budgeting where every saved dollar counts.

For larger savings exceeding $100, we carefully selected detailed reviews, focusing on purchases including electronics, costly educational programs, home improvement items, trendy apparel, car maintenance, and emergency supplies, catering to various individual demands. Intriguingly, many reviewers expressed that significant coupon discounts influenced their decision to invest in these pricier items. Research also shows that 38% of American consumers are inclined to spend more than planned when using a coupon, and 67% are enticed to make impulse purchases due to coupon offers.

Additionally, a significant portion of reviewers mentioned that using coupons had helped them save hundreds of dollars over recent months or years. Strategies such as buying essentials in bulk were highlighted as effective ways to save significantly in a single transaction.

Considering that users who save minimally might be less likely to leave reviews, the estimated savings from these reviews may be overstated. Therefore, these observations should be viewed as suggestive rather than conclusive.

Furthermore, we obtained the average discounts for different categories using coupon data from merchants' websites, newsletters and other channels over the past 6 years. Mobile & Wireless and Women's Clothing have the highest average discounts at 43% and 38%, respectively. In comparison, Men's Clothing offers an average discount of 30% only.

Reasons for User Dissatisfaction with Coupon Extensions

Listening to customer feedback is vital for industry development. Utilizing a survey, we noted "code," "work," and "coupon" are frequent in negative reviews. Expanding on this, we categorized users' complaints from over a thousand negative reviews, pinpointing the main dissatisfaction areas. Most notably, 34.3% of the feedback expressed frustration with the intrusive pop-ups, citing issues with frequent and disruptive pop-ups blocking website content. On the other hand, positive feedback highlighted a preference for discreet and non-disruptive interactions, offering valuable insights for future improvements.

Furthermore, 21.4% of reviewers emphasized the importance of responsive and efficient customer support, while 20.7% called for a wider variety of coupons and supported merchants to avoid the need for multiple extension usage. Concerns about privacy and financial security were raised by 12.3% of reviewers, due to the risk of sensitive data exposure during automated coupon testing at online checkouts.

The growing dissatisfaction among reviewers over time highlights an increasing demand for coupon extensions to offer more than just basic functions. It's crucial for coupon providers to address these concerns to drive industry progress despite existing challenges.

Methodology

We gathered data from the Chrome Web Store, collecting over 190,000 reviewer ratings and comments from the review sections of 10 popular coupon extensions.

Our initial analysis focused on tracking reviewer ratings and review trends over time. We then utilized keyword techniques to identify comments indicating user savings, estimating the proportion of reviewers who reported saving money. For those who saved, we identified the specific amounts saved and details of high-value purchases, categorizing them accordingly. Moreover, we categorized the negative feedback using keywords, with adjustments made based on the accuracy of the categorization.

Finally, we researched reports and news about e-commerce, retail and coupon industry to find evidence supporting our findings.

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