Phil Rubin

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's digital coupon center is a significant step ahead of the in-store kiosk approach from Sam's Club we recently discussed here. It's easy to use, gets customers to the Kroger site(s) and allows them to select relevant offers.

The key to long-term success lies with Kroger's ability to leverage the data provided (which customers select which coupons) against its in-store transactional data from those same customers.

In order for this to be a win for all parties--Kroger, it's suppliers and its customers--there has to be measurable value for all. The customer is the easier part as long as the coupons provide meaningful discounts (they do) but for Kroger and the CPG companies there has to be incremental lift in sales and not just in total, but for specific customers. If these discounts only go to existing customers of those products, then it's dilution, not sales gain.

Of course given Kroger's investment in dunnhumby, this is unlikely the case and this should be huge for Kroger and ultimately set a new bar for others in the grocery business.