Driving Loyalty & Sales With Digital Coupons at Canadian Grocers
The Canadian grocery market is at a pivotal moment, with digital transformation reshaping how retailers interact with customers. Among these changes, digital coupons have emerged as a powerful tool. They engage consumers, drive sales and build loyalty. Through surveys, 86% of Canadian consumers said it's important to use coupons and promotions to be able to purchase the groceries they need. As grocers face intense competition and customers demand greater convenience and value, digital coupons offer a solution that benefits both retailers and shoppers.
Importance of Digital Solutions Grows in Canadian Grocery Shopping
The Canadian grocery industry, valued at over $147 billion annually, is seeing significant changes in consumer behavior.
- Increased E-commerce Adoption: Grocery e-commerce in Canada is expected to grow steadily, with online grocery shopping becoming a more significant part of consumer routines post-COVID-19 pandemic.
- Value-Seeking Consumers: Rising food costs due to inflation have made Canadian shoppers more price sensitive. According to a recent Inmar study, 65% of Canadian consumers base their grocery shopping list on coupons and upcoming sales.
- Digital Savviness: Nearly 77% of Canadians prioritize a retailer's digital coupon program when selecting where to shop for groceries. Canadians are comfortable using digital tools, making them a prime audience for digital couponing.
Meeting Consumers Where They Are
Digital coupons offer a seamless way to attract and retain customers while addressing their demand for convenience and savings. Whether integrated into retailer apps, loyalty programs or third-party platforms, these coupons meet Canadian shoppers where they are — online and on their mobile devices.
3 Key Trends Driving Digital Coupon Adoption in Canada
- Mobile-First Approach
- Canadians are avid mobile users, and grocery retailers are leveraging this by integrating digital coupons into mobile apps.
- Push notifications and app-exclusive offers increase coupon visibility and redemption rates.
- 44% of consumers look for savings on their retailer's website/digital coupon gallery, 37% on the store's app and 23% on social media.
- Personalization
- Retailers can use consumer data to personalize offers, predicting what customers need and presenting timely, relevant coupons.
- 58% of consumers said they'd be more likely to buy more at the grocery store if a retailer suggested products based on their preferences and dietary needs.
- Seamless Omnichannel Experiences
- Canadian shoppers expect a unified experience across online and in-store channels.
- Digital coupons enable consistent value, whether customers shop through apps, websites or physical locations.
- 40% of consumers said their No. 1 reason for visiting their preferred grocery retailer's website is to look for coupons and promotions.
5 Strategies for Digital Coupon Success
- Invest in user-friendly platforms.
- Ensure that digital coupons are easy to find, load and redeem via apps or websites.
- 68% prefer to learn about weekly sales and promotions on the store website or app.
- Leverage data for personalization.
- Use analytics to understand customer behavior and craft targeted promotions that resonate.
- 80% of consumers said personalized content and promotions tailored to their preferences are important in a grocer's loyalty program.
- Promote awareness.
- Educate customers about the benefits of digital coupons through in-store signage, social media campaigns and email marketing.
- 57% would be more likely to use digital coupons at grocery stores if they could automatically load digital coupons from a QR code or UPC code that they scan on the product's shelf tag while shopping in the store.
- Integrate with loyalty programs.
- Combine coupons with loyalty rewards to maximize customer retention and encourage repeat purchases.
- 89% of consumers use their respective retailer's loyalty program.
- Measure and Optimize
- Track redemption rates, customer feedback and sales impact to refine strategies and enhance performance over time.
Digital Coupon Success Stories
Digital coupons aren't just a trend — they're a strategic tool for Canadian grocers to meet consumer demands, foster loyalty and drive revenue growth. By embracing digital couponing, retailers can stay ahead in a competitive market, delivering value to their customers while enhancing their own bottom line. As Canadian shoppers continue to prioritize convenience, value and sustainability, digital coupons will be an essential component of a successful grocery retail strategy.
The time to act is now.
About the Author
Sherif Fahmy is the VP, Commercial Strategy at Inmar Intelligence, where he applies his extensive experience in omnichannel strategy, retail media and commerce activation to deliver innovative solutions that drive growth and profitability for partners.
As an omnichannel strategist, practical innovator and leader, Sherif brings a balanced perspective on solving business problems with more than 20 years of agency-based innovation, commerce activation and retail media experience, coupled with time spent at CVS Health leading incentive/loyalty strategies with manufacturers. He's built and led scaled businesses that focus on commercial optimization, productivity and profitability. His versatile background across numerous channels and clients, and the pioneer of several retail-based companies/tools prove there's a solution for every kind of problem.
