To show the growth of the business, 10 million digital coupons have been redeemed in the first half of this year, a 25% gain from last year's first half number. And new services are leading the growth. Third party firms like the previously named 8coupons and Mobiqpons can send out discounts to a potential customer on his cellphone when he/she is only a few blocks away from the retailer. And while only 1% of paper coupons are used, Cellfire says that its redemption rate for mobile coupons is an impressive 15% to 20%.
The benefit to using these discounts goes both to the customer and to the business owner. A cellphone user recently scored an $8 discount on tickets to an off-Broadway show and was able to take 15% off his bill at the Container Store simply by using the coupons on his phone. On the other hand, Buttercup Bake Shop in New York City recently used 8coupons to send out a special promotion for 8 cent cupcakes to subscribers by text message. Over 500 people showed up to take advantage of the offer. It's a rare win-win relationship.