Kroger and Procter & Gamble are involved in a test to deliver coupon savings to consumers sans the paper. Shoppers at the grocery chain can select coupons from offers on the grocer's website and the savings are automatically loaded onto their Kroger Plus Card. When they check out, the savings from their card are automatically processed with their purchases.
Therese Sangermano of Cincinnati has used the digital coupons. She told The Associated Press, "It's really nice, because I always forget to bring my coupons along ... and I don't have to organize them."
Carol Hoffman of Covington, Ky., prefers the digital coupons to paper, as well. "You don't have to waste your time going through all those little pieces of paper in your purse," she said.
While being supported by the likes of Kroger and P&G increases the likelihood of adoption, digital coupons are not going to be for everyone.
"If you're very computer savvy, this is probably a plus," Peter Meyers, vice president of ICOM Information & Communications, said. "But if you're more of a traditionalist, paper is familiar and this is not."
Ken Fenyo, Kroger's vice president for corporate loyalty, told the news service, "We really are just trying to provide more options, not take things away. We know many of our customers are online heavily anyway. I believe over time, more and more customers will want to use the online option."
Mr. Fenyo said Kroger is in currently talking with other manufacturers to bring them into the test, as well.
P&G, for its part, is optimistic about the potential for digital coupons to drive sales.
Matt Kemme, a P&G marketing manager, told The Associated Press, "It's very early, but we've been able to run the water through the pipes and from what we've seen, things are looking pretty good."
Discussion Questions: Will digital mean the eventual end of paper coupons? Do you expect to see higher or lower redemption rates with digital coupons versus paper? How will this play into the financial assumptions that brands make when dropping coupons? What impact will it have on brand sales during non-promotional periods?