08/12/2022 | Press release | Distributed by Public on 08/13/2022 01:08
Even if consumers spend the same amount as they did in 2021, rising average selling prices (ASP) means consumers are purchasing less, or walking away with less items.
Gartner has been monitoring and surveying consumers regularly to keep a pulse on how consumers are changing their shopping habits to adapt to inflation. One trend we've recently observed is the return of couponing.
While the physical act of sitting at the kitchen table and cutting out coupons from the latest newspaper may have disappeared, the rise and utilization of digital tools such as price comparison and coupon tracking tools has replaced it. Now more than ever, consumers are turning to such tools to combat inflation.
We recently surveyed and asked the Gartner Consumer Community, "How has inflation impacted how you shop for things you need regularly (such as food, groceries, household products or personal care items)?". Across generations, more than 30% of consumers are utilizing digital price comparison and coupon tracking tools to combat inflation. We found that younger generations are more likely to increase their usage of digital tools compared to older generations (see below figure). In fact, almost 50% of Gen Z & Millennials are utilizing digital tools to track coupons. Couponing is not out of style.
Digital marketers need to consider how to address shifting consumer behavior related to inflation through reinvestment and focus into discounting. Associated tools should be highly reconsidered. Embracing digital tools related to price savings cannot be ignored.
Dedicated Digital Coupon Tracking Tools
Third party digital coupon tracking tools often fall into a brand's affiliate marketing strategy. Brands can partner with these tools through an affiliate network, paying a percentage commission on every sale driven by the tool. Most tools also offer content marketing sponsorships opportunities for features in their weekly newsletter, homepage, or app.
While marketers may worry that offering a discount through these partners could tarnish their brand perception or reward a customer who may already be planning to purchase, recognizing the utilization of these tools by target consumers demonstrates that consumers expect a discount and are seeking one to combat the impact of inflation. Participating will aide the initial conversion which could mean the difference of acquiring the target customer or not. Brands can take steps to limit the total amount of cash back a customer receive or number of coupon uses to ensure a customer doesn't associate couponing with the brand long term.
Integrated Digital Coupon Tools & Features
Many payment, credit card and banking platforms have launched targeted offers. They utilize a consumer's first party spending data to surface relevant offers related to their past spending behavior. When consumers login to their associated accounts, they're presented with offers and can opt in to participate.
Brand Owned Digital Tools & Features
Best in class brands partner with digital tools to offer discounts but also build them into their owned platforms. Many surface coupons and offers exclusively to rewards or loyalty members as an added benefit or perk to the program.
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