BrainTrust Query: How Can Stores Drive Digital Coupon Adoption?
Through a special arrangement, presented here for discussion is a summary of a current article from the Mark Heckman Consulting blog.
In my mind, one of the key deterrents of digital coupon adoption lies in one of its inherent advantages. It's invisible. Yes, without the muss and fuss of clipping paper coupons, load-to-account digital offers are "clipped" electronically, placing them in the shopper's account, requiring the shopper only to identify themselves at the store through a card or account number and purchase the said item related to the offer.
Pretty simple. But brands are still balking at the efficacy of digital coupons, all the while taking advantage of the targeting flexibility and, perhaps more importantly, the ability of "capping" the markdown expense by simply "deactivating" the offer once a threshold of coupons have been either redeemed or "digitally clipped."
The fact of the matter is that brands very much like the "advertising equity" that paper coupons and paper circular placements provide, elements that digital coupons do not typically offer.
Accordingly, what we have today are digital offers that "float" invisibly and out of the stream of consciousness of the consumer, coupled with the possibility that the deal could vaporize at any moment at the discretion of the brand making the offer.
So it would seem to me that if we could retain all the benefits of "invisibility," yet provide more tangible reminders and evidence of digital offers, we just might see the engagement rates of digital offers increase significantly.
Enter the retailer. In-store "recognition" may manifest in various forms. It could be an app that senses where you are in the store, or a targeted SMS text message, a printed shopping list loaded at the retailer's website or at an in-store kiosk, or a number of other new "at the shelf" message venues. But more often than not, this recognition will be a good ol' sign that breaks through the clutter.
Realizing that targeted offers cannot be signed with item and price as they are often directed to a subset of shoppers, support signage can come in the form of general information about the ability to receive offers by signing up for the program. However, it is important that a digital specific price and item program anchor the digital program. This can be accomplished by the retailer offering and showcasing each week an array of digital deals that either are stand alone offers or, even more effective, bolster existing traditional offers as a "digital bonus." Other more overt options for digital offers are waiting to be created.