Retailers introduce more ways for consumers to save money digitally

What it means: Retailers and third parties are driving consumers to engage further with digital channels by offering clear promotions and coupons and leaning into the consumer’s desire for value. Value is a key factor in consumer decision making at retail, and it's particularly important this year as consumers grapple with lower savings rates and higher prices in essential categories. As a result, promotional activity appears to be increasing and consumers are on the hunt for sales, coupons and other alternatives to increase purchase value. However, even though value continues to drive conversion at retail, promotions have evolved. Kroger recently announced its intent to discontinue paper circulars in specific regions across the U.S. The decision came from analyses on consumer behavior and shifting desires to research products and promotions online. Similarly, Instacart also released new options for consumers to search and easily identify stores and items with savings attached while researching and planning a shop occasion. Driven by AI and past consumer purchase behavior, these recommendations can help consumers navigate promotions across retailers. Both of these new enhancements by retailers and third parties intend to drive consumer engagement in digital channels and optimize e-commerce solutions. According to Statista, 62% of consumers engage with retail email messages related to promotions or discounts currently available, the highest of any email type. These announcements also come on the heels of the announcement of a decline in grocery e-commerce sales in March. Driving digital engagement with essential retail items aligns naturally with shifts in consumer behavior and increased usage of digital research. If consumers are already spending hours scrolling through their phones, why not encourage them to do the same when looking for coupons and promotions. As consumers plan weekly grocery trips, having coupons available digitally to add to rewards programs and loyalty cards eliminates barriers in the retail experience and ultimately can provide more value to consumers. Promotionality will most certainly be a key driver of retail growth this year as consumers look to maximize their purchases. Making those activities easier and increasing transparency in deals may be a safety net for retailers and brands during these more turbulent times. What’s next: Digital loyalty programs are already popular with consumers, but brands and retailers can further maximize those offerings using AI and personalization for individualized value.

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