“Overwhelmed By Digital”: Paper Coupons May Be Poised For A Comeback

Are shoppers using more digital coupons because they prefer them over paper, or because they don’t have a choice?

Marketers who’ve shifted to digital offers have long argued that they’re just giving modern shoppers what they want. But amid a growing backlash to digital-only coupons, some brands are finding that old-school tactics not only work, but can help them stand out amid all the digital noise.

The latest evidence that not all shoppers want their coupons to be clicked instead of clipped, comes in the form of a new survey from Catalina UK. The British branch of the company known for its paper coupons that print at the grocery checkout found that shoppers there aren’t sold on digital-only deals. “In a world dominated by digital-first marketing, physical formats continue to be the nation’s preferred channel for receiving food and grocery offers,” the company found.

A third of the shoppers surveyed named paper coupons as their preferred method of receiving offers, compared to a quarter that prefer digital. That’s true even among younger shoppers, dispelling the common view that only older shoppers are clinging to paper. “Gen Z is the group most likely to feel overwhelmed by digital and least likely to want more of it, indicating a saturation point and a need for balance,” Catalina found.

50% of all shoppers surveyed said they don’t receive enough print offers. And among those who prefer paper coupons, nearly half said they like having a physical reminder. 45% say paper coupons are more convenient at the checkout. And 29% said digital coupons are too often “out of sight, out of mind,” so they forget to use them at all.

“Digital solutions rely on opt-in, app downloads, and logins,” Catalina noted. That can limit their reach as compared to paper coupons, which are accessible to everyone.

And some upstart brands here in the U.S. are apparently taking note.

“I think it’s really important that people hold something,” Karen Danudjaja, CEO of superfood latte brand Blume, told Modern Retail recently. Over the summer, Blume introduced a new product by mailing printed coupons to Whole Foods shoppers who had a history of using coupons, and was pleased with the results. “Even if they throw it in the bin, your open rate is 100%,” she said of the company’s decision to go with paper coupons instead of digital.

Going against the grain can also prove to be cost-effective, at a time when printing up some paper coupons can be less expensive than launching a full-fledged digital marketing campaign. Feminine product brand Viv For Your V recently handed out coupons to in-store shoppers and saw an immediate boost in sales. Now, “any time there’s an event that we’re part of,” marketing and design director Kelly Donohue told Modern Retail, “we’ve passed out physical coupons.”

“We’re excited to bring back this old technique,” Danudjaja added, “and be in real life with customers, versus the digital world.”

Inmar Intelligence recently reported that 57% of all coupons redeemed so far this year were digital, making it the most popular format. But that also means that 43% of all coupons redeemed were paper – a not-insignificant percentage for a format that some claim is fading fast.

It’s certainly not fading in places like Kroger, where even digital coupons are now being offered in printed form. That move came in response to many customers’ concerns that digital-only deals are discriminatory to those who are not digitally-savvy – and in response to some legislators’ efforts to mandate alternatives if retailers don’t come up with solutions themselves.

“Too many brands and retailers rush toward the next shiny thing, but ‘digital-first’ shouldn’t be the default,” Catalina UK General Manager Huma Khan said in a statement. “It should always be shopper-first: meeting people where they are, not where we want them to be.”

Some shoppers may like browsing through a digital coupon gallery featuring hundreds of offers; others might prefer a curated, printed selection at their local Kroger. Some may like scanning a QR code at the shelf to get a deal on a new product at Whole Foods; others might appreciate being handed a paper coupon they can take to the checkout, no phone or app or log-in required. Some marketers may put all their promotional eggs in one digital basket; others might look to stand out by offering tangible, tactile, physical coupons that still get results.

Shoppers these days are looking for deals and are less loyal than ever to brands. But they’re also bombarded with digital ads and promotions on a regular basis. So the outliers who offer paper coupons could find they’re just the thing to capture shoppers’ attention – and their business.

Image source: cpyles