Why paper coupons still pack a punch in a digital world

As consumers continue to spend cautiously and price-sensitivity remains high, growing demand for physical coupons is helping retailers drive loyalty and product discovery – particularly among younger shoppers, the latest research by shopper intelligence firm, Catalina UK, reveals.

Original research of over 1,000 UK customers, commissioned to mark National Coupon Awareness Month (01 – 31 Oct), showed 60% of shoppers now want personalised coupons. Over a third (35%) also want money-off vouchers for products they already buy regularly – almost double the level compared to 2022.

With household budgets facing ongoing pressures – and the cost of food and non-alcoholic drinks rising by ~25% between Jan 2022 – Jan 2024, according to the Consumer Prices Index – demand for physical coupons is becoming a key consideration for shoppers looking to make savings.

Printed coupons at the till are now the top way 32% of UK customers prefer to receive offers, with 23% of Gen Z now preferring physical paper vouchers over app-based promotions, an increase of +6 percentage points over the last two years.

Physical coupons “give shoppers a stronger sense of value and make savings feel more rewarding,” Huma Khan, UK Country Leader for Catalina UK, said. “Even small offers can provide a sense of control over spend, which matters enormously in today’s economy.”

And this sense of value and control is helping drive loyalty and product discovery. Almost three quarters (74%) of those polled by Catalina UK said personalised coupons increased the likelihood of them returning to the same supermarket. Meanwhile, a further 69% said they would be more likely to try new or different products if they were incentivised via promotional vouchers.

“Coupons don’t just save money, they drive discovery, trade-ups and bigger baskets,” Huma commented. “True loyalty isn’t about being reached, it’s about being recognised. Coupons [help] retailers connect with shoppers in a way that’s both practical and emotional.”