Will Save to Card Coupons Replace Paper Coupons

The last few years have seen the introduction of "Save to Card" coupons. These are coupons that you can access online, via a mobile device or through a Kiosk and then save the coupon to a Store Loyalty Card. So for example you might see a link for 50 cents off Tetley Tea and save that Coupon to your Kroger Plus card. Then the next time you purchase Tetley Tea at a Kroger, the 50 cents will be deducted at Checkout.

While, Save to Card coupons quickly rolled out to some of the retailers like Kroger, Pathmark and Safeway,  many of the other supermarket retailer groups like Ahold and Delhaize Group still seem reluctant to jump in.

Save to Card coupon offers several advantages. For retailers, it helps drives customers back to the specific store, reduces fraud and the coupon can usually be electronically cleared (reducing costs). For manufacturers, it provides much faster feedback on how a campaign is doing and can better target consumer with specific offers. For consumers, it saves money on ink and paper and eliminate the risk of forgetting to bring or losing the coupon.

However Save to Card coupons also have several disadvantages. For retailers, there can be a significant cost to  implement and there are multiple Save to Card platforms some of which like Zavers are not tied in to a specific retailer. For manufacturers, there is a lose of branding/mindshare (the consumer see's the brand when they print and handle the paper coupon). For consumers, they may lose track of what coupons they have or when the coupons expire (some consumers like to hold off using the coupon until the product is on sale). There is also something to be said about the experience of handing the cashier all your coupons and getting to see them deducted off your bill that is lost with Save to Card coupons.

So will Save to Card Coupons Replace Paper Coupons? My short answer is no. I think Save to Card coupons will gradually grow over the next few years and become an important distribution channel. Now as you get further out, say 8-12 years is when I think Paper coupons will begin to phase out. In between, I think you'll see some hybrid solutions such as the ability to scan a unique paper coupon in to your phone so you can redeem it or transfer it to a Save to Card coupon.

What do you think?