Digital coupons are increasingly shifting towards online discounts

In the ever-evolving world of retail, the strategies used to attract and retain customers are constantly changing. One such shift can be seen in the use of coupons and loyalty programs, as traditional paper coupons give way to digital alternatives.

J.C. Penney's no-gimmicks, everyday pricing strategy has faced challenges, highlighting the importance of competitive pricing in the retail sector. Meanwhile, the economy plays a significant role in shaping consumer goods marketing. Retailers closely monitor economic reports on consumer sentiment and personal income to adjust their strategies accordingly.

A notable change can be observed in the coupon industry. According to the Valassis Corp. U.S. Mid-year 2013 CPG Coupon Industry Facts Report, coupon redemption for the first half of 2013 saw a decrease of over 8 percent. This trend could be due, in part, to environmental concerns surrounding paper coupons.

However, the decline in paper coupon usage does not mean a decrease in the desire for discounts. On average, households in the U.S. use 11.2 percent of their after-tax income for food, indicating a propensity for consumers to withhold purchasing until they feel they're getting a discount.

In response, retailers are implementing digital loyalty programs. For instance, Meijer is introducing a system that requires consumers to log in and digitally clip coupons and promotional offers. Other stores, like family-owned grocers, have loyalty programs that automatically provide the best prices and offer perks such as sale notifications via email and birthday coupons.

Local chains and independent markets are also competing by offering loyalty programs and promotional strategies that don't require consumer clipping. This approach eliminates the need for physical coupons, contributing to a cleaner environment.

The shift towards digital coupons and loyalty programs not only benefits consumers but also various stakeholders. Vendors and suppliers of the software that runs loyalty programs, as well as advertising and marketing firms, web designers, and others, get spillover business from these digital marketing strategies.

Moreover, the use of digital coupons is not limited to food items. Manufacturers' coupons are increasingly being used for non-food items, providing consumers with a wider range of discount opportunities.

As we approach the fourth-quarter consumer shopping ramp-up, national trends in coupon and deals use should be closely considered. The thrill of the hunt is still needed to get consumers into stores, but the methods for providing discounts are evolving. Digital coupon options by marketers are growing, offering consumers a more convenient and environmentally friendly way to save money.

In conclusion, the landscape of consumer marketing is undergoing significant changes, with a shift towards digital coupons and loyalty programs. This evolution not only benefits consumers but also contributes to a cleaner environment and provides opportunities for various stakeholders. As we move forward, it will be interesting to see how these trends continue to shape the retail industry.