For Generation Z, saving money through digital coupons isn’t just a savvy habit—it’s a way of life. A new study from marketing technology firm savi reveals just how deeply embedded promotions have become in consumer behaviour, particularly among younger shoppers.
Mobile coupons are not only influencing what Gen Z buys but also where they shop, with ripple effects felt across all age groups in an era of economic strain.
The study, which surveyed 2,000 UK adults in November 2024, found that 90% of 18–25-year-olds are more likely to try a product if they have a coupon for it. The ease of mobile redemption is a key factor, with 70% of Gen Z shoppers using their smartphones to redeem offers and 57% citing mobile accessibility as a major incentive. Nearly a third (32%) of respondents appreciate notifications about unused coupons.
But while Gen Z may be leading the charge, digital couponing is hardly a generational quirk. The study found that 70% of all shoppers now prefer mobile coupons over paper ones, and 57% have redeemed them—pointing to a broader shift in consumer behaviour.
Brand loyalty? Not without a discount
The influence of coupons extends far beyond individual purchases. The research found that 76% of shoppers would be willing to try a new product if they had a discount for it. Perhaps more tellingly, supermarkets risk losing customers if they fail to honour promotions. Sixty-eight percent of shoppers said they would consider switching supermarkets if they couldn’t redeem a coupon there, an increase of four percentage points from the previous year.
Despite inflation easing, the cost-of-living crisis continues to shape consumer habits. Twenty-five percent of shoppers still rely on coupons to supplement their budget, and brands are responding by increasing promotional investments. Over the last two years, savi has observed a 50% increase in the value of discounts offered, with redemption rates doubling as consumers actively seek out deals.
Shoppers now anticipate discounts across a wide range of categories, with food (71%) topping the list, followed by household goods (54%), clothing (51%), dining out (46%), and fuel (42%). But it’s not just about everyday savings—consumers increasingly expect brands to reward them for their engagement. Nearly half (46%) look for loyalty rewards, 37% expect discounts on their birthdays, and 35% appreciate promotions inviting them to try new products.
The privacy trade-off
While consumers are eager for savings, they also understand the trade-offs involved. A significant 69% of shoppers are comfortable sharing personal information in exchange for coupons via loyalty schemes. This includes email addresses (63%), shopping habits (46%), and preferred brands (39%).
However, shoppers’ biggest frustrations include short expiration periods (37%), retailer-specific restrictions (30%), and concerns over potential rejection at checkout (30%).
As brands compete for consumer attention in a cost-conscious climate, promotions have become more than just a marketing tactic; they are now a core expectation. For retailers, the message is clear: meet shoppers’ demand for savings or risk losing them to a competitor that will.
Steve Smith, chief commercial officer at savi, said: “Mobile coupons are becoming a currency in daily life and a key influence on how consumers perceive brands and retailers. Our latest research shows shoppers are coping with the cost of living (particularly food inflation) by regularly using coupons and increasingly want the easiest way to redeem them which is via their smartphones.”