Grocery Stores Turn to Mobile Coupons

With more consumers tuning out traditional advertising, supermarkets are increasingly joining the mobile revolution to reach customers while they shop.

December 13, 2013

ST PETERSBURG, Fla. – How do you reach the small, but growing percentage of grocery shoppers who ignore traditional advertising? More and more, its through their smartphones, Forbes reports.

Catalina, one of the leading companies behind in-store coupons, has moved into mobile coupons to target shoppers while they shopped. A recent report from the company discovered that “two-thirds of all shopping baskets didn’t include a single item among the 1,172 advertised [at a major retailer]. Looking at the following week circular from the same retailer, 74% percent of shopping baskets did not include a single item.”

That finding didn’t surprise John Caron, vice president of marketing for Catalina. “Each of us receives over 5,000 media impressions a day, and so much of that is ineffective,” he said.

At Ahold’s Stop & Shop, customers can turn on a Catalina mobile phone app when they enter the store and receive tailored coupons and reminder messages to pick up frequently bought items while they shop. “Three friends can walk up to a Stop & Shop and each will have personally targeted offers based on what we think you need next,” Caron explained.

The app can also scan and keep a current tally of the basket items, which hasn’t lowered spending. The way grocery stores will continue to find success is in giving shoppers customized offers coupled with loyalty and payment options, said Caron. “Mobile gets traction when integrated into the store shopping experience. You have your phone open, scan everything, then pay and walk out of the store,” he said.

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