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Domenick Celentano

Savvy Penny Digital Grocery Coupon system Launches at D’Agostinos Supermarkets in New York City

By December 1, 2012

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Shopper Marketing is the updated version of in-store brand support. End-displays, off-shelf merchandisers, point of sale shelf talkers are still prevalent but the smartphone is now the new tool we want to use.

Brick and Clicks - The New Reality of Retailing from PRS unveiled the following digital trends that are affecting grocery shopping:

  • Over 54% of shoppers surveyed own a smart phone and 76% use them while shopping.
  • Although most people use them to gather information, they are used to check check prices, find promotions, read product reviews, or get product information and 57% use them for Consumer Packaged Goods (where food is part of CPG)

I wrote about Savvy Penny in The Digital Shopper At Supermarkets - Trends in Mobile Coupons. There system is designed for and provides retailers and Consumer Packaged Goods (CPGs) brands a shopper loyalty platform and facilitates the movement away from labor intensive paper coupons. Monetizing mobile (in other words how do you make money) is always a challenge. Savvy Penny "makes money" by providing a platform for supermarket to sell digital point of purchase advertising.  So forget the cardboard shelf talkers that are static... their in-aisle terminals are dynamic and I see them as FAR more effective than the old fashioned Free Standing Inserts in the news paper. Does anyone read newspapers anymore?

The Consumers Path To Purchase

So you register at the kiosk which is placed in the front of the store and plug in your cell phone number...

Now as the shopper shops each aisle there are in-aisle touch-screens with deals that you can select. The in-aisle touch-screen communicating to your phone via Bluetooth so the system tracks your purchases and the deals offered that will be applied to your purchases when you check out.

When you get to the check lane, there is another terminal communicating again with your phone via bluetooth to (a) validate the phone number originally entered upon entrance to the store and (b) link the offers you selected in each aisle to your total order. In the end you get the savings applied instantly without the hassle of all of those paper coupons.

Savvy Penny touchscreen at the self-checkout links your purchases to your payments

What is Their Business Model?

How do they make money by saving you money? They charge fees for processing the paperless coupons and will be selling branded advertising tied to the consumers past purchases and the aisle they are in at the supermarket. The advertising in my opinion is where the big money is for them and for any other mobile shopping platform for the supermarket business.

Dynamic digital ads can be a big plus for smaller food brands and a big plus for supermarkets to sell advertising to brands that could not have afforded the more costly Free Standing Inserts. Frankly anything that is newspaper or circular based will be an antique in the near future.

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