Progressive Grocer

AUG 2015

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August 2015 | progressivegrocer.com | 113 Technology Digital Coupons D igital coupons are currently a foot- note in overall coupon distribu- tion and redemption. Traditional free-standing inserts (FSIs) that shoppers receive in newspapers are overwhelmingly dominant. But if newspaper readership is declining and so-called "Mobile Millennials" will be the key grocery shopper of the future, it's clear that digi- tal ofers will grow. Digital coupons are available on a grocer's website or smartphone app. Tey can be loaded onto a store's loyalty card. Tey're also available on websites for coupon networks and coupon aggregators, which both draw a huge amount of trafc from deal seekers. "Given the recent outstanding track record for digital promotions, there is no question that these ofers are gaining momentum with both shoppers and marketers, and that there is tremen- dous future growth potential for them," afrms John Ross, CMO of Winston-Salem, N.C.-based Inmar and president of Inmar Analytics, whose research has seen 100 percent year-over-year The growth for fve consecutive years in share of over- all redemption for paperless digital ofers. Considering the Source But which source for selecting and redeeming digi- tal coupons will grocery shoppers rely on the most? "Digital coupons have a value to consumers because they are convenient," says David Ciancio, senior customer strategist at Cincinnati-based Dunnhumby North America. "Te best-in-class capabilities allow consumers to select and load hun- dreds of digital coupons directly to their loyalty card or to a mobile app, and redemption is automatic and painless for the shopper." "Grocery loyalty cards are fully saturated. Most grocery shoppers currently have loyalty cards for ev- ery grocery retailer they frequent," contends Jonathan Treiber, of RevTrax. "CPGs are wary of providing lots of ofer content in this category, because of the retailer-specifed terms and conditions. Tey're really more focused on providing just enough ofer content to maintain a positive merchandising relationship with their key retail partners. You'll fnd that Paperless Chase Retailers seek to engage consumers through easier delivery of e-coupons. By John Karolefski Digital coupons have a value to consumers because they are convenient." —David Ciancio, Dunnhumby North America

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