Use of digital coupons spanning generations
Inmar Intelligence released findings which found that digital load-to-card (L2C) coupon redemption has overtaken paper free-standing inserts (FSI) for the first time ever – shaking out to a 27 percent YoY (year-over-year) increase by share of volume.
What’s more is that digital coupon usage among Generation X has grown 6 percent YOY from 65 percent in 2020 to 69 percent in 2021. Digital coupon usage among Baby Boomers has seen an 18 percent YOY increase from 49 percent in 2020 to 58 percent in 2021, indicating continued demand for digital.
Shoppers of all ages are becoming more digitally savvy, in part due to the Covid-19 pandemic as online shopping presents a safer, more convenient way to make purchases. Equally, shopper demand for cost savings and value is increasing, prompting them to frequent retailers that help stretch budgets.
Inmar found in their ‘2021 Promotion Industry Analysis’ that load-to-card was the most redeemed coupon method in 2020 for the first time ever, accounting for 29.3 percent of all redemption volume. This equals a 27 percent YOY increase in load-to-card redemption by share of volume (2020 vs. 2019). With shopper demand for digital coupons increasing across all generations, retailers and manufacturers need consistent messaging and value offerings across all omnichannel touchpoints to stay competitive.
Additional key findings from the 2021 shopper behavior study include:
- Boomers (59 percent) and Gen X (54 percent) represent the two generations with the highest percentage of shoppers who are looking for digital coupons before going to the store for an in-store shopping trip for grocery products.
- 69 percent of shoppers reported that using a coupon changed their purchase decision in some way in Q4 2020.
- 94 percent of Gen X and 86 percent of Boomers surveyed said personalized coupons and promotions were significant factors when joining a loyalty program.
- 50 percent of Boomers and 63 percent of Gen Xers agreed or strongly agreed that they use digital coupons through their loyalty account/card because it is easier than using paper coupons.
“Growth in digital coupon redemption has been upward trending now for the past couple of years – which has no doubt been exacerbated by the COVID-19 pandemic”, said Spencer Baird, EVP & President, MarTech at Inmar Intelligence. “Digital is now a channel preferred across generations and with many of today’s consumers doing their shopping online, digital coupons provide the most convenience and personalization. As consumers still face economic uncertainty during this time, it’s especially important for brands and retailers to provide more value and savings at the register. It is up to retailers to provide a wide range of digitally available value – and those that do will come out on top.”
Source: Inmar Intelligence
