“Coupon Clippers” are Now “Coupon Clickers and Viewers”

The concept of discount coupons for grocery items originated in the 1800’s. After all, who doesn’t want a deal?

But we’ve come a long way from paper envelopes filled with individual pieces of paper. Although local “circulars” still fill our mailboxes, automation and precise consumer targeting have taken the concept to a whole new level.

Sean Turner, Co-founder and Chief Innovation Officer at Swiftly, spoke with us about the future of “couponing.”

Why do consumers love “deals?”

“Given today’s challenging economic climate and increasing inflation, today’s shoppers are more deal-savvy than ever, seeking more promotional offerings and savings beyond just the price. Consumers are buying private labels, trying different brands, and trying different retailers to stretch their dollars as far as possible.”

How has couponing evolved?

“For many years print circulars have been the go-to method for identifying savings, but today, with the rapid decline of print, retailers and brands are turning to digital tools to better serve their customers. Couponing now includes loyalty programs, mobile applications, and cashback offers.

This evolution reflects the changing needs and behaviors of consumers looking for more efficient and effective ways to save money. In fact, our 2023 True Cost of a Grocery Survey found a 30% increase in coupon usage from last year, with nearly all (82%) respondents stating that they rely on coupons to offset grocery store prices. Digital couponing not only provides savings but also offers a more personalized and convenient shopping experience, helping retailers build stronger relationships with their customers.

In the early days, your most deal-conscious shoppers would pour through the circular, literally circling the deals that were most relevant to them. Today, shoppers don’t have to do so much work. We see millions of shoppers each week be presented with a personalized digital ad showing the items they are most likely to buy that are on sale this week. Smart retailers help the deals to find the shoppers rather than waiting for the shoppers to find the deals.”

How has technology changed the coupon world?

“Over time, technology has significantly transformed the coupon world by shifting from print to digital, making savings more accessible and convenient for shoppers. Technology advances such as mobile apps, personalized digital offers, and real-time redemptions have enhanced the shopping experience because consumers are getting offers aligned to their personal preferences rather than ones that make no sense. (e.g., in a printed coupon world, vegans could receive coupons for ground beef, but in a personalized and targeted digital world, the offer on ground beef would be directed to customers who’ve previously bought beef.) For retailers, technology enables targeted promotions, enhanced customer insights, and increased engagement. Thanks to digital tools and technology, retailers can personalize coupons and turn generic offers into highly relevant content that draws customers both online and in-store. This shift from traditional paper circulars to digital circulars has improved overall shopper engagement and customer loyalty, driving measurable business growth.”

How can smaller brands compete with larger retailers in the discount arena?

“Digital coupons are very popular in today’s larger retailers. However, many independent and regional grocers don’t have access to the same digital couponing capabilities as major grocery chains, putting them at a disadvantage. Regional and independent grocers can really focus on the value they deliver to the consumer rather than just the price, and digital circulars can help bridge this gap. With personalized digital circulars, retailers can offer personalized promotions and deals to their shoppers without competing on the price of every item in the store. This not only attracts deal-hungry consumers but also fosters loyalty and repeat business, ultimately boosting sales and customer satisfaction.”

What’s the next step in that evolution? 

“As the retail landscape evolves, we focus on empowering retailers and brands to seamlessly connect the open web with in-store shopping experiences.

With the recent introduction of our Audience Optimizer solutions, we enable retailers and brands to efficiently deliver personalized content at scale to shoppers wherever they are on the web, ultimately driving foot traffic to physical stores. What sets us apart is our integrated Audience Optimization technology, which combines personalization, targeting, automation, and access to digital channels—including social media, websites, and connected TV—to more effectively engage shoppers. This comprehensive approach allows retailers and CPG brands to actively attract and engage with shoppers in pursuit of the best deals and promotions on their products, delivering a great offer to the right consumer and a good return on investment to the retailer or brand. We literally make the deals find the consumers that want them most—wherever those consumers happen to be on the Internet.”

Will paper coupons/flyers continue to exist? Why?

“It’s unlikely that paper coupons and flyers will disappear completely, but we are already seeing print circulars decline rapidly as newspapers decrease their distribution and more consumers forego opening a printed newspaper. As the costs of printing and distributing print circulars continue to rise, retailers are being forced to move to digital whether they want to or not.

Additionally, today’s ultra-competitive retail environment demands that independent retailers modernize their approach to compete and thrive. Players like Walmart and Amazon have long embraced the digital shopper, and as more retailers transition away from print, they can’t afford to let their shoppers leave them for more digitally native retailers. Embracing new technology and digital solutions enables retailers to stay ahead by leveraging better data insights, personalization, targeted marketing opportunities to continue to highlight and reinforce the reasons that consumers prefer these stores over the mass market digitally mature retailers.”

What are the big transformations within the next five years?

“Digital signage will be the next big opportunity for smaller grocers to implement in-store. Not only will this help even the playing field against retail giants, but it will also enable them to take advantage of labor savings and additional manufacturer-funded discounts to offer even more value to their customers. Some retailers are taking this a step further.

For example, The Save Mart Companies has installed digital signage in some stores that can give shoppers recipe ideas, show how to use a new product, or highlight savings and deals. Because these digital signs are part of the same campaign strategy as their retail media campaigns running on their mobile app and website, this is helping them to capture even more of their shoppers’ attention in the digital world. Retailers must think about building shopper relationships outside of the store, not just when the shoppers are within the four walls of the store.”

So, if you’re a discount shopper, you can put away your scissors for the time being and simply look at the small screen and dynamic in-store advertising!