James Tenser

Kroger's One-Stop Digital Coupon Center

July 27, 2010

FROM RETAILWIRE:
Kroger last week launched an online digital coupon center that enables customers to load coupons onto their loyalty-card accounts. The discount is then automatically deducted at checkout without a paper coupon. How would you rate Kroger's digital coupon website?      [more...]

Kroger earns a gentleman's "C" from me for this welcome but not-entirely-inspiring solution. The ability to load coupons onto the frequent shopper account is a progressive innovation that turns the card into a kind of "virtual wallet."

But only a subset of shoppers routinely engage in the kind of pre-planning that would lead them to take advantage of the Kroger digital coupon web page. Those that do would be required to redeem manufacturer coupons sourced elsewhere in a separate process at the checkout.

Another limitation: It will be hard for shoppers to remember what coupons are loaded onto their card accounts without a printed list. This seems to me like a barrier to redemption.

A more comprehensive, shopper-friendly solution would link coupon offers to each shopper's behavioral profile. It would integrate with a shopping list functionality for those who do plan. It would offer multiple modes of interaction in addition to the Web page, including one or more "savings station" kiosks (with printers) located near store entrances and apps for mobile phone users.

All in all, this is a promising effort from Kroger that will need several evolutionary cycles to meet its full potential.