Daily Insights

Old Is Gold in Grocery

By: Alizah Asif Farooqi | May 07, 2019

When was the last time you used a coupon? Though they may seem a bit old-school, coupons are as good as gold when it comes to influencing digital purchasing decisions in the grocery business.

To start with, over half of internet users between the ages of 18 and 39 rank discounts and coupons as very important—even higher than the rank given by older age groups. Currently, 77% of analyzed grocers advertise product coupons on their sites and 65% allow customers to save coupons to a central location for later use, according to Gartner L2’s report on the topic. Kroger leads by offering customers a central digital coupon hub where coupons can be discovered and clipped. Users can also filter coupons by brands and product category, clicking into lists of products that qualify for the offer. To reinforce the value of couponing, Kroger caps things off by showing the total year-to-date savings and the total savings an individual customer has accrued through discounts and coupons on the check-out page. Though Kroger’s total site visits across desktop and mobile have gone down 12% year over year, traffic to its discount-related pages has increased by 3%.

Featuring coupons in product tiles on grid pages is also a critical step for promoting savings in the purchase funnel, but only 24% of grocers stock this feature. ShopRite is an example, showing a Clip Digital Coupon button on relevant product tiles in addition to the change in price from regular sales. In contrast, Price Chopper features a cumbersome account sign-up process and obfuscates couponing opportunities by siloing them in a coupons tab.

Furthermore, consumers love savings, maybe more than ever. The popularity of discount apps is on the rise. In order to bring the savings-conscious consumer online, grocers should incorporate couponing features on their own sites. But just including these features isn’t enough. Brands must provide a seamless digital couponing experience coupled with product discovery to blur the line between a traditional grocery shopping experience and an online one. This allows grocers to ease hesitant customers into making the switch while also appealing to those who value the savings of a traditional grocery shopping experience.