Why are more retailers investing in digital coupons?
- Fareway Stores recently launched a digital coupon program that automatically loads coupons to shoppers’ online profiles, then lets them redeem the coupons through their phones, according to Retail Info Systems News.
- Shoppers create an online profile through the system, which was developed by LOC Software and Invisipon, and select the product categories in which they’d like to receive coupons.
- The program, now available to shoppers in all 117 of Fareway’s stores, loads both manufacturer and store coupons to customer profiles.
Print coupons are still very popular, but digital coupons offer some distinct advantages for both shoppers and retailers.
For retailers, the new digital coupons promote customer loyalty, just like print ones. Unlike the print coupons, though, automatic digital coupons like the ones now offered to Fareway customers see a very high conversion rate. There’s no overlooking the coupons by losing them in a wallet or under the car seat. And that’s a big deal. According to a study by Forrester Research, 79% of shoppers say they wouldn’t buy an item if they forgot to bring the corresponding coupon to the store with them.
Digital couponing also keeps consumer engagement high by offering personalized deals, meaning there’s likely to be noticeable savings with every trip. Retailers can really zero in on high-spending shoppers and entice them to buy products not on their usual shopping list. A study by Quotient Technology Inc. recently found that digital coupon users are more likely to try new items and then buy those items regularly.
Digital coupons also summon a desired consumer base: millennials. According to shopper marketing firm Valassis, nine out of ten millennials use coupons, and a growing number are redeeming them through digital channels. Sites like RetailMeNot aggregate coupon codes and deals, while programs like Honey automatically apply discounts while consumers are browsing.
There’s a paradigm shift towards consolidating deals for shoppers. With the latest innovations in digital couponing, retailers are able to keep pace with their e-commerce competitors.
- Retail Info Systems News Fareway Stores Increases Basket Size with Digital Coupons
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