Associated Wholesale Grocers, Inc. (AWG) announced that its partnership with the University of Illinois Gies School of Business on a digital coupon analytics project has result in a series of findings:
• “Consumers who use digital coupons also have bigger basket sizes.”
• “Digital coupons affect customer retention on AWG Brands. This means that consumers who used a coupon on an item, were likely to buy that item again even without a coupon.”
ª “Redemption data showed that digital coupon usage peaked at the end of 2020 during the height of the COVID-19 pandemic; however, digital coupon usage is steady and grows at the end of each year during the holiday selling season.”
AWG said that “starting in January 2022, three cohorts of students seeking master’s degrees in data analytics were provided five years of digital coupon redemption data from AWG and recent transaction data from seven consenting AWG retailers. The goal was to discover whether digital coupons and discounts are associated with a change in private brands purchasing behavior, in terms of more spending and/or customer retention.”
KC’s View:
I’ve long been an advocate for retailers shifting to digital couponing and, as quickly as possible and appropriate, getting out of the print coupon business. So many did it during the pandemic, but then backed off that commitment afterwards, which makes no sense to me.
Maybe it cannot be done overnight, but this has to be the goal. Print coupons and advertising are so 20th century.
Full disclosure: AWG is a longtime and valued MNB Charter Sponsor.
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