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Source: Facebook | Kroger

Has Kroger Simplified or Muddled Digital Coupon Access?

Kroger updated its coupon redemption policy to enable shoppers unable or neglecting to download digital coupons to still benefit from the deals.

The change comes weeks after Kroger announced it would retire weekly specials in print newspapers due to declining newspaper circulation.

“We understand that not all customers choose to engage digitally when shopping with retailers. Customers who would like to take advantage of digital coupons and do not have a digital account can receive the discounted pricing at any customer service desk,” Kroger said in a media statement on the digital coupon change.

Kroger noted that nearly 80 percent of the coupons offered to frequent shoppers are print coupons mailed directly to them and shoppers across age groups indicate they redeem digital offers at a higher rate than print coupons.

“While digital coupons are an added benefit for customers who choose to interact with us digitally, their participation also helps Kroger keep prices low for all customers because it supports our efforts to invest in lower pricing for everyone,” the grocer said.

Public interest groups have charged that low-income shoppers and seniors, demographics that statistically have less access to and a lower level of comfort with technology, are being unfairly restricted from accessing in-store digital-only deals.

Kroger’s customer service desk may become inundated with frustrated shoppers, but the move should be a relief to store cashiers.

“I’m sick of getting screamed at by people who’s digital coupons don’t work & old people who don’t have a phone or internet at all to get digital coupons. When I try to help them, I’m told we can’t change it for them, they HAVE to clip it,” one Kroger cashier posted on a Reddit thread.

“Digital coupons are fine,” another wrote. “It’s the posting of the digital coupon prices in the store that’s stupid. Every single person involved in the decision to do that should have to spend eight hours in a checkout lane on the first Sunday of the month.”

One challenge is delays with in-store redemption. Stop & Shop states on its website about digital coupons, “Coupons are typically available within 10 minutes of loading them to your card. However, it could take longer.”

BrainTrust

"Kroger is right to allow any customers to use digital coupons, but I believe this solution is less than ideal. They need to rethink the process."

Ken Morris

Managing Partner Cambridge Retail Advisors


"I really value retailers that automatically give you the discounted price if you are a loyalty member vs making you jump through hoops to download a coupon or clip a coupon."

David Naumann

Marketing Strategy Lead - Retail, Travel & Distribution, Verizon


"Once Kroger or any other retailer starts making it harder for customers to shop at their stores, customers will find a store that treats them the way they want to be treated."

Ron Margulis

Managing Director, RAM Communications


Discussion Questions

DISCUSSION QUESTIONS: Do you agree with Kroger’s steps to make digital coupons more accessible to customers or do you see it causing more problems? Where are the biggest pain points driving shopper anxiety over digital coupons?

Poll

23 Comments
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Neil Saunders
Famed Member
9 months ago

Offering digital coupons is smart. However, abandoning paper completely was always going to cause issues as not everyone – including the elderly and some vulnerable folks – has access to phones and computers. The new policy seems better but it still appears to rely on computer access, albeit not via a smartphone, to get coupons. Moreover, having to redeem things via the customer service desk rather than at the till point is a faff. Quite honestly, I don’t thing Kroger thought this through.

David Naumann
Active Member
9 months ago

Making non-digital customers go to a service desk to receive the discounted price is very inconvenient for customers. I really value the retailers that automatically give you the discounted price if you are a loyalty member versus making you jump through hoops to download a digital coupon or clip a paper coupon.

Rich Kizer
Member
9 months ago

With cashiers sounding so frustrated, I think executives take a break and go out to stores and check-out customers. Ocerly frustrated staff can have a huge bearing on customers satisfaction. If a principal sees the problems themselves, I think the solutions, no matter how hard to create, will be in place in record time. And the cashiers and customers can on once again enjoy their Kroger experience. solutions come only when people really get to recognize and work with to create smiles on everyone’s faces.

Brandon Rael
Active Member
9 months ago

As we increasingly move to a digital-first society, it should be no surprise that Kroger and other grocers, along with retailers, will slowly transition away from paper-based coupons. Similarly, we have seen society move to a cashless and paperless operating model, and coupons and promotions are making a similar transition.

However, eliminating paper-based coupons will be challenging in the case of Kroger, which is servicing multi-generations, as well as consumers at various stages of the digital adoption maturity curve. It will take a transition period to account for the customers who prefer paper-based ads and coupons to ensure that everyone is being served and that there is inclusivity for those behind in the digital transition.

Ken Morris
Trusted Member
9 months ago

Kroger is right to allow any customers to use digital coupons, but I believe this solution is less than ideal. They need to rethink the process. Perhaps offering embedded coupons for membership is a better approach. More like a BJ’s or Costco model without the cost to join. This would certainly simplify the in-store process and still have the benefits of having the customer contact for Kroger—and not need for a smartphone.

Susan O'Neal
Member
9 months ago

Shoppers who regularly use coupons of any sort are already used to putting a lot of work into the process of saving money. The challenge here is access to the information, specifically what digital coupons are available so they can plan their shopping trip.

Cathy Hotka
Trusted Member
9 months ago

Let’s face it. “Engaging digitally” means customers have to spend valuable time searching the weekly ad online, clicking on the items they want, making a list of those items to take to the store, then checking the receipt after purchase. I would recommend that grocery execs try this themselves before recommending it for consumers.

Ron Margulis
Member
9 months ago

My grandfather, a ShopRite Supermarket operator for years, had a mantra that went something like this: “My job as a retailer is to make it as easy as possible for my customers to buy from me and as hard as possible for them to buy from anyone else.” Once Kroger or any other retailer starts making it harder for customers to shop at their stores, those customers will find a store that treats them the way they want to be treated.

Jeff Hall
Jeff Hall
Member
9 months ago

Based on early customer and associate feedback, this appears to be a work in progress. Kroger is laser-focused on understanding and elevating the customer experience in-store and online, so I’m confident that any friction unintentionally introduced into the coupon redemption experience will be reconciled.

Gene Detroyer
Noble Member
9 months ago

It seems Kroger is trying to move anxiety from the checkout to the customer service desk. Why can’t they simply give the discount to loyalty shoppers? That is easy, and it makes it simple for all shoppers. Maybe they really don’t want the coupons redeemed?

Steve Montgomery
Steve Montgomery
Member
9 months ago

Kroger posting the prices of items if a customer redeems a digital coupon is a good idea in concept. The process for its customer securing that price leaves a great deal to be desired. The services desk in most supermarkets is already reasonably busy. Do they think a customer should go there to purchase the item or items for which they want the digital coupon price. This in essence turn the service desk into a checkout lane. Don’t see that ending well for its customers or Kroger.

Brent Biddulph
Member
9 months ago

Kroger has somehow managed to make grocery shopping at their stores far too complicated with their digital couponing. Understand the goals as stated, but the execution has been a nightmare for consumers for years.

Case in point, was just in my local Kroger Friday before Memorial Day. They drew me in with (yes, their weekly circular) featuring T-bone steaks and great deals on all the fixins’, snacks and drinks. Arrive at store, realize that some deals ‘require’ a digital coupon. OK, try to open the ‘app’ and their wi-fi is too weak to load the app, forgot my password, and navigating to the items was not easy. I was about to put all those items back on the shelf (afterall, advertised shelf price was right there, and without the digital coupon it was punitive). Not being in a hurry (which is not often the case in a grocery store for me), I decided to go to the Service Counter to try to figure it all out. One CS person there, taking care of a Money Order that took over 6 minutes in front of me. Hung in there. Yes, the CS person was super helpful, we figured it out, but she was also obviously frustrated (and by this time an expert) on sorting out this very common problem.

At the end of this trip, I personally spent over 10 minutes trying to sort out this digital coupon monster. In this case, Kroger has put so many obstacles in place it has certainly driven consumers to competitors, lost sales and employee frustration.

Agree with Ron 100%. Kroger should rethink the entire Digital Coupon process from the Customer / Store Experience POV – not frustrating consumers and not dumping the execution problem once again (from cashiers to CS) on store associates – there’s a better way.

John Karolefski
Member
9 months ago

It’s commendable that Kroger wants to help seniors, but I suspect most of them want to use printed coupons instead.

Georges Mirza
Member
9 months ago

It is excellent to see Kroger taking steps to ensure that all customers can benefit from their deals, regardless of whether they engage digitally. The process created frustrations for shoppers and employees. Have you tried to add a coupon at the store? The app and the signal are challenging—good job for Kroger monitoring and adjusting policies for a positive shopper and employee experience. They still need to work on having to go to the service desk to get the discount…

Rameet Kohli
9 months ago

I can understand discontinuing newspaper circulars but they could still have a handful printed and available at the entrances for those who prefer paper. They could also let shoppers scan paper coupons into their digital account. This shouldn’t be that hard.

Craig Sundstrom
Craig Sundstrom
Noble Member
9 months ago

It sounds like the complaints are really more about the discontinuance of the print ads than the help desk itself.
IIRC we (here on RW) thought poorly of the concept, so I would describe the current effort as making the best of a bad situation.

Trevor Sumner
Member
9 months ago

Like most technological transitions, it’s painful at first and then better in the long run. New frictions get addressed, such as loyalty club members automatically getting coupons, and over time the better process wins over even the laggards. While I understand the concerns about equal access, smartphone penetration is 85%. Automatically crediting loyalty club members with coupons solves the remaining 15%, just by them entering their phone numbers.

storewanderer
storewanderer
Member
9 months ago

There was previously a digital coupons manual coupon code that front end or self checkout could use when a discount didn’t come off on digital.

A few months ago they told the stores they could no longer use that code.

Now this is their solution…

Rachelle King
Rachelle King
Active Member
9 months ago

Sometimes, there is no end to retailers efforts to give the appearance of fair and equitable, this is one such example. All Kroger has done is shift a bottleneck of frustrated customers from the checkout line to the customer service line. Now, it will take customers twice as long to get the discounted price. The only winners are cashiers who no longer have to manage this dysfunction.

The hard truth is some customers will never adopt digital coupons, or use smart phones. Kroger has to decide if this group of customers is valuable or not.

Brad Halverson
Active Member
9 months ago

The moment Kroger went toward digital only, there would be fallout. But to put checkers/cashiers in front of a vocal segment of unhappy customers while figuring out ideal operational implementation, not good. Getting customers to a service desk is a good alternative to assist those who don’t have access to digital grocery shopping tech. Just be sure you dedicate labor to staff the desk, or have someone nearby at the ready. Otherwise this becomes a poorly thought out program, by creating winners, losers, and unhappy customers.

Scott Jennings
Member
9 months ago

It is a step in the right direction but a band-aid for a cut a bit too large for a band-aid. This is a challenge that will be with us for decades, may as well solve the problem by offering coupons rather than channel dependent coupons.

Roland Gossage
Member
9 months ago

This approach to digital coupons from Kroger is a great move as it’s in line with how consumers are shopping today. Convenience is a top priority for almost all customers, and that includes making deals and coupons both easy-to-find and easy to use — especially as consumers become more value-conscious.

William Passodelis
Active Member
9 months ago

I am sorry — this is ALL Garbage !!! I Love Kroger — they are a FANTASTIC Grocer with GREAT Stores!!! Do not fix what is not broken! All coupons should automatically be available to member customers! They could use that as a reason to drive shopper card/rewards card membership! Making things difficult will only result in the customer finding an easier way to do it — AT ANOTHER RETAILER! I LIKE Kroger so I can only hpe the other grocers do dumb things like requiring APP use to get a coupon — thus giving Kroger the ability to keep it’s place! Mr Magulis had a GREAT Comment—as did Mr Saunders— Mr Margulis’ GrandPa HAD IT RIGHT!!! Thanks All !