What You Need to Know About Saving Money
Mobile coupon use is on the rise. But you probably already know that. Between online deals, smartphone access, and load-to-card features, there seems to be a new way to save at every corner. In fact, according to research from eMarketer, a projected 104 million Americans will use mobile coupons in 2016 alone.
However, the landscape of mobile coupon use is not as simple as it seems. As we enter the biggest shopping season of the year, new studies reveal some startling facts about coupon use across channels as well as some important truths about savings that may lead to more (or at least smarter) savings strategies for the frugal shopper.
Mobile Coupon Use in 2016: Is the Paper Coupon Dead?
Back in February, a much-publicized study conducted by Retail-Me-Not and Placed captured attention across the web. It declared the death of the paper coupon, and lauded that more than 40% of consumers prefer searching their mobile device for savings ahead of traditional and even printed online coupon options. The study, entitled “The State of Coupons and the Role of Mobile: How Consumers Leverage Mobile to Save,” surveyed nearly 11,000 consumers, and presented several key findings:
- Some 42.8% of consumers prefer mobile apps for saving money.
- Comparatively, only 35.9% look for print coupons.
- These shoppers are incredibly picky, however, with 73% reporting use of only 1-2 shopping apps.
Unfortunately, the headlines surrounding this study burry an important lead. This massive survey only looked at consumers’ habits for non-grocery purchases. In fact, a follow-up study by Ask Your Target Market this past October revealed quite a different picture. Questioning 1,000 consumers, AYTM found that a massive 86% of respondents regularly used coupons on their grocery purchases. Further, 79% identified paper coupons as their savings method of choice.
Contradictions Reveal a Still-Changing Landscape
Retail-Me-Not is a well-known website dedicated to retail shopping, which partly explains the emphasis of its study. And their motivations are clear in the study’s introduction which declares, “Shoppers no longer need to devote time to clipping coupons from the newspaper; they now have a device that can help them find deals instantaneously.”
However, their findings reveal a deeper truth about the changing landscape of shopping and saving in 2016 as well. First, shoppers clearly love their coupons. The study found that more than 64% look for savings before entering a store. On the same point, however, the coupons these shoppers seek are just as likely printed ones. Eclipsed by the study’s more sensational headlines is the fact that 63.9% of respondents identified that they look for physical coupons before they shop as well.
It seems that, whether people are shopping retail or weekly groceries, the Sunday paper still reigns. In fact, an estimated 90% of all coupons redeemed in grocery stores are clipped from the Sunday circulars. And while online coupon use is rising (51.4%), offline coupon redemption is still far more common (70.2%).
How to Use Research to Maximize Your Coupon Savings
When saving is always your goal, studies like these may not mean much. Regular LRWC readers know that the best way to save is “stacking” digital and print coupon deals and that is not about to change. However, these facts are very important to another group: retailers. To them, understanding the lack of engagement with store-specific mobile apps and the rise (or quasi-rise) of other mobile savings options helps determine the effort and resources they will dedicate to different savings options in the coming months.
For example, the fact that 40% of consumers use mobile apps is promising. However, most of these consumers only use 1-2 apps. This may lead to retailers offering more targeted promotions to current users or creating incentives for new users in order to get them to download and use their specific app. Paying attention to these trends can lead to saving more as you maximize each retailer’s efforts to reach out to the disengaged consumer.
Don’t Stop Clipping, but Stay Connected Too
In the end, the best strategy is the one that we already knew worked: combining the best of both the print and digital worlds. Despite the rise of digital, Sunday circular coupons are still a major draw to consumers. As a result, they will remain a major marketing initiative for retailers and brands alike.
Similarly, as Millennials age and digital savings continue to grow, paying attention to technology trends and getting “with the times” in order to use them is similarly important.
Bottom line: these studies may not reveal anything that we don’t already know, at least subliminally. However, they do reinforce our strategies and boost our confidence to continue clipping, downloading, and printing our way to savings that work.
