Coupon Redemption Rate

Coupon Redemption Rate

KPI Details

Coupon Redemption Rate measures the ability of the company to use product promotions to stimulate sales. A low value for this KPI indicates that the company has issues turning over stagnant inventory and may not have a firm grasp on their customers needs. A low value may also suggest that the company has inefficient consumer research processes and is not implementing a strong “call to action” for the consumer (i.e., redeemable at certain locations, etc.).

KPI Definition

The number of active coupons used by customers when completing a transaction divided by the total number of the company's coupons that are in circulation and are considered to be active (i.e., usable during a certain period of time and/or under specific circumstances) over the same period of time, as a percentage.

KPI Calculation Instructions Coupon Redemption Rate?

KPI Formula :