Grocers Come Up Against 26% Awareness Gap with Digital Promotions
Grocers’ efforts to drive sales with digital deals may go unnoticed by consumers.
The Context
As economic pressures have prompted many consumers to reevaluate their food spending, grocers have been doing everything possible to incentivize purchasing. One of the key tools at their disposal has been digital couponing.
For instance, Kroger, the nation’s leading pure-play grocer, shared on an earnings call earlier this month that, throughout 2022, the company saw record-breaking digital coupon use. Moreover, across digital and physical coupons, consumers redeemed more than $1.4 billion of value.
“Our data science teams are using predictive science to serve customers the right products at the right time and at the best value, because we know our customers so well,” CEO Rodney McMullen said. “We were able to provide recommendations to start their baskets and deliver personalized offers on the products most important to them, saving them time and money and making their lives easier. In return our customers reward us with their trust and loyalty.”
Similarly, BJ’s Wholesale Club shared on its earnings call earlier this month that those who “engage with promotions spend the most,” according to chief membership officer Tim Morningstar, adding that digital coupons have been “supporting an additional 3.7 billion in merch sales.”
Yet, in spite of the importance of digital deals for driving sales, many retailers are struggling to spread awareness of the option.
By the Numbers
Research from PYMNTS’ study The 2023 Global Digital Shopping Index: U.S. Edition identifies a 26% awareness gap in terms of digital promo codes. In a survey of more than 500 merchants and more than 2,800 U.S. consumers, 63% of the former reported offering the option, while only 50% of shoppers say that the most recent merchant that they shopped had promo codes available.
Additionally, 35% of the consumers surveyed stated that promo codes are very, extremely or the most important when shopping digitally.