While a traditional grocery coupon is torn from a newspaper, flyer or mailshot; carried by the shopper; and then redeemed by handing to the checkout assistant - a ‘digital’ coupon is less clear. This is because digital media and mobile devices can be utilised for either the distribution, transfer/transport or redemption of coupons – or any combination of these.

For example, in the USA supermarket retailers have launched ‘digital coupon’ microsites. Shoppers browse the latest coupons, which are then electronically transferred to their loyalty card at the click of a button - coupons are redeemed in-store by swiping the card. In contrast, websites and smartphone apps like Vouchercloud enable shoppers to find voucher codes that are printed or handed to the checkout assistant and copied down by hand.

Figure 1: What are the different types of digital coupon

Source: Evolution Insights

Benefits of digital coupons

Aside from the dramatic increase in usage of digital media among shoppers, digital coupons offer a number of clear benefits over traditional coupons, including:-

• Cost savings (e.g. no printing costs, improved targeting and ROI)
• Dynamic tracking and updating of campaigns
• Improved redemption rates
• Ability to accurately measure ROI from ePOS systems
• Opportunity to target specific shopper segments based on opt-in information
• Speed of delivery to shoppers

Are shoppers using digital coupons?

Evolution’s latest research finds that more than 1 in 3 (37%) UK adults who regularly shop for food and grocery currently already use digital grocery coupons - typically those delivered via websites and e-mail. Digital media and grocery marketing is set to hit the mainstream. This is no longer the realm of teenagers and geeks.

Indeed, a survey conducted by GMA and Booz & Company finds that ‘online coupons’ are now nearly as influential as traditional paper coupons in influencing shoppers purchase decisions outside the store.

Mobile is the future

The rapid adoption of internet enabled mobile phones is a particularly important trend in support of the continuing growth in digital coupons. A recent report published by Juniper Research forecasts that more than 300 million consumers worldwide will have used mobile coupons by 2014, and figures from Ofcom show that mobile internet connections have now outpaced the desktop.

Evolution’s research highlights the opportunity:-

• 96% of UK adults who regularly shop for food and grocery own a mobile phone.
• 37% own a smartphone.
• 81% would be happy to receive coupons by email or on their mobile phone.
• 70% of those interested say they would opt in and disclose personal information in order to receive coupons.

US retailer Target is leading the way. It allows shoppers to state their preferred time of the day to receive grocery coupons to their mobile, and is the first supermarket to deliver coupons directly to the mobile that are redeemed by scanning the barcode on the devices screen.

Related resources

Reports

Digital coupons in food & grocery: the shopper perspective

Digital shopper marketing 2010

Blog

Click to view articles

Articles / Thought Pieces

Digital Shopper Marketing: The Shopper Perspective

.

Tweet this article

Post this page to:

• Delicious
• Digg
• StumbleUpon