According to the eMarketer, the total number of redeemed coupons via mobile device will rise up to 104.11 million until the end of the year 2016. This statistic implies that more than 82% of digital coupons will be downloaded and processed through our tablet and smartphone apps.

Nevertheless, the traditional way of how this great machinery works hasn’t changed that much. If you ever wondered where do all those coupons go, or how did they got in the palm of your hand, here is a short and simple explanation that will help you understand the long and meandering road of coupons.

The Company/The Manufacturer

Unless you are using store coupons, which are basically discounts at your local shop, this is where it all starts! The most popular type of a coupon is the one that you get from the manufacturer, or the Company; and the first thing that we will do is examine why they print out coupons in the first place. There are two reasons actually.

#1

The most common reason is because it is a very effective form of an advertisement. The great majority of us will always notice a product with a discount on it, since we all love that sweet money resting in our pockets, and the brand with a large “50%OFF sign” on it is the first one that we will pick up from the shelf to check it out. It is as simple as that.

If the product has just entered the market, coupons can help the company to sell it by boosting the hype about it, and getting the word out there. As consumers, we simply can’t help ourselves but noticing those little flashy squares of opportunities on our screens and in our newspapers, calling us to use their discounts and price cuts. We all love a bargain, and if one in a hundred of us actually needs the product advertised – those are some good numbers for the manufacturer.

#2

The reason two is: the company appreciates your business. If you are willing to trust the manufacturer with your money, they will gladly respect you back and provide you with something extra. Believe it or not, that is the truth. By implementing this sort of a relationship, all chances are that you will come back to do some more business tomorrow, knowing that you will get your money’s worth. By becoming a regular, you are making more profit for the company in continuity.

Not only that, but you will probably brag about this type of affiliation. When your friends hear about you using coupons and getting constant reductions, they will probably follow your example and use the coupons themselves. The company will always prefer counting on three stabile consumers, than having ten potential ones.

Disposal/Distributors

This factor is simply explained as “the middle man.” Once a company makes a decision to distribute coupons, they naturally have to address the target market. A designer will make the coupons look appealing to the potential consumer, and after approval, the marketing team of the company sends coupons to distributors.

Sometimes a distributor is a large internet mogul, and by affiliation, they are taking a percentage. Sometimes the companies are counting on its already established and loyal buyers to advocate for them through referrals. Than via magnificent paths of the internet, through magazines and online forums, we can get Amazon promotional codes anywhere in the world. Now let’s take a look who we are, shall we.

Shoppers/Consumers

Just last month, the Nielsen group published an official statistic that 18% of shoppers, globally, use online coupons on a regular basis. 65% of us are actually willing to use coupons more often, but we are too lazy to look for them constantly. Believe it or not, the manufacturers are actually responding to our laziness, and now you can download numerous apps online that will do the entire search for you.

In addition to that, the good people of Nielsen also informed us that 7% of the American women use coupons on regularly, while only 4% of the guys do the same. On average, coupon users are family people, with college degrees and are the main providers of the house. That means that a model coupon user is a strong, independent and a smart woman.

The Stores/Shops

If you thought that you were taking money from the store – you were wrong. In fact, the store managers welcome you to use coupons, and they actually love affiliating with the manufacturers since they are literally guiding shoppers to their business. They still get their money from the clearing house, and all the additional profit from the traffic increase.

We’ve already mentioned store coupons, and to clear that topic as well, you should know that shops don’t even lose money on in-store coupons. Some pricing strategies will almost make you believe that you are practically stealing the product. The harsh truth is that some strategies are only devised in that manner, and the managers are counting on you to trust them. Don’t believe the hype.

The Clearing House/Reports

Sometimes the clearing house is the distributor, and in that case it is a two way bridge between manufacturers and shoppers. Other than paying the stores and dealing with all of the distribution, this factor gets a very valuable piece of information – the statistics. As we all know, information costs money, and is one of the reasons why companies love coupons.

When the clearing house delivers reports back to the company, the data gained influence further investments, marketing strategies and ventures, and helps manufacturers to define and expand the market. With digital coupons we have today, the process of reporting is simplified to extent where all analytics are based on transparent figures and constant feed of statistics. That information even made this post possible.

So don’t be afraid of the coupons. When you break it down into pieces, this complex machinery is easy to comprehend and all that it does is helping everyone involved to benefit from it, from companies and distributors to economically conscious shoppers.