Deals Influence Grocery Shopping, In-Store and Online

By John Karolefski


The death of coupons is greatly exaggerated.

Despite a steady decline in coupon redemption in recent years, there is good news. A new survey reports that nine of ten shoppers (93 percent) are interested in finding coupons, coupon codes and deals for groceries – making grocery the top category for deal and coupon-finding. What’s more, they would like to use coupons when ordering groceries online or buying meal kits.

“Consumers have more options than ever before when it comes to how they purchase groceries,” said Curtis Tingle, Chief Marketing Officer, Valassis, which gathered grocery specific insights from its 2018 Purse String Survey. “Whether they shop online, in-store, use a delivery or pick-up service or prepare meal kits at home, it’s critical for grocery retailers to consider shopper preferences. Consumers want deals, convenience and a personalized experience. Grocers that   deliver on these increasing customer demands will win them over and gain their loyalty.”

The survey of more than 6,200 value-seeking consumers revealed grocery shopping preferences and evolving consumer behaviors.

Although most consumers (82 percent) typically use coupons for their routine, weekly grocery shopping trip, nearly half (47 percent) do so for their fill-in trips as well.

Thirteen percent of respondents say they are buying more grocery items online and having them delivered to their homes compared to last year. This percentage jumps for both dads (23 percent) and Hispanics (20 percent). While another 12 percent of respondents say they are buying more grocery items online and picking them up at the store, millennials and millennial parents are embracing this approach even more, at 20 and 22 percent, respectively.

Retailers have an opportunity to capture even more of these online grocery shoppers, according to Tingle. Nearly half (48 percent) of all respondents and 70 percent of millennial parents agreed they would be more likely to shop for groceries online if they could use more coupons.

“When we see coupons online for e-commerce purchases, they tend to be both manufacturer and retailer coupons,” Tingle told CPGmatters in an interview. “We have even seen some retailers make coupons available only for an online purchase. That’s an interesting tactic.”
   
He said some online coupons from grocers offer discounts on the entire shopping basket. Other times it’s coupons for specific private brand products and for branded goods available only through that retailer online.
 
Grocer meal kits represent another opportunity, Tingle said. More than a third (36 percent) of respondents and more than a half (52 percent) of millennial parents would be interested in trying a grocer’s meal kit if offered at a store near them. Additionally, eight of ten shoppers (82 percent) said they would be more interested in trying a meal kit from a grocery retailer if they offered a coupon.

“We haven’t seen that [coupons for meal kits] in the marketplace,” Tingle said, “but there are couple of reasons why they should be. You have to drive turn on those products. You can put coupons in the marketplace because they can drive great interest and trial by consumers. In other words, drive the products faster and attract a new audience to the brand.”
  
According to the Valassis survey, shoppers are more likely to buy from a grocery retailer that:

  • Rewards their loyalty with personalized offers or discounts (83 percent – and 86 percent for both moms and millennials);
  • Makes them feel like a valued customer (67 percent);
  • Safeguards and protects their privacy and personal information (58 percent – 61 percent for baby boomers); and
  • Provides a consistent experience no matter where/how they interact (54 percent).

The survey was fielded on redplum.com from May 15 through June 15, 2018. Findings are based on responses from 6,279 value-seeking consumers.

COUPONS                                 
                                               October 2018
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