Newsflash Baby Boomers and Gen Xers: you have more in common with Millennials than you think. At least when it comes to bargains.
With 97% of 18-34-year-olds owning a smartphone, according to Nielsen, the coveted Millennials are money conscious, time-crunched and using digital coupons on a regular basis.
Digital coupons go above and beyond saving a few dollars—they make shopping an easy, personalized, shareable, and completely Millennial-friendly experience.
According to PRRI, 48% of Millennials used online coupons, compared to 39% of Gen Xers and 32% of Baby Boomers in 2016.
The explosion of digital coupon websites and mobile apps is transforming the way consumers shop, especially Millennials. Per eMarketer, 64% of Millennials search for coupons on their smartphones.
Sites and apps are easily accessible to Millennials who are constantly online. They aggregate digital coupons, saving consumers time, providing access to a broad database of coupons anytime and anywhere, and letting users find and instantly apply savings.
With Amazon.com’s purchase of Whole Foods, don’t be surprised to see Millennials further embrace online grocery shopping, so long as it comes deeply discounted.
Valassis recently released its 2017 RedPlum Purse String Survey and found consumers expect more from grocery suppliers, like home delivery, online shopping and discounts usable both online and offline.
The online survey asked 8,550 consumers if they would buy more groceries online if they could use more coupons. Fifty-seven percent would and that number jumps to 73% when surveying Millennials. This number increased compared to Valassis’ 2016 Purse String Survey which found more than half of consumers would be more likely to shop for groceries online if they could use more coupons, with 66% of Millennials agreeing.
The top five categories in which Millennials seek coupons, according to Valassis, are: groceries (93%), cosmetics (69%), clothing (62%), household items (60%) and restaurants (57%).
The massive increase of digital couponing doesn’t mean the end for traditional print clippings.
According to a survey for Linkable Networks and conducted by Forrester Research, Millennials are just as likely to use a coupon found in a newspaper or received in the mail.
Forrester found “in today’s digital world, consumers still use paper coupons at a surprisingly high rate, likely because most digital options do not provide a seamless customer experience.”
While a work in progress, online is where to target penny-pinching Millennials looking to save money.
Valassis found that 94% of Millennials are using coupons in 2017 – up from 88% in 2016; 61% of Millennials spend more than two hours a week looking for coupons and cost-saving deals.
If you’re looking to target brand-skeptical, spend-conscious Millennials, reach out online with a campaign that’s transparent and offers a not-to-be missed coupon opportunity. When a brand earns the trust, and dollars, of a selective Millennial, a repeat customer is on the horizon.
I understand that this is a story about digital coupons, but a little perspective is in order. Scarborough's panel of 100,000 consumers (also from 2016) showed that only 19% of Millennials (half as many as the PRRI survey) retrieve electronic coupons. In fact, the Scarborough data show they are are more likely to use PRINTED coupons (34% get them via U.S. mail and 42% via in-store distribution) than digital coupons. Not trying to prove a point....just trying to add a little perspective. Print coupon usage/redemption remains remarkably high. Old habits, I guess.