From clipping coupons to clicking on them

"It's great to see the innovation and I'm happy to see two big players taking a lead in that," Peter Meyers, vice president of the Toronto-based marketing firm ICOM Information & Communications LP, said of the Kroger-P&G trial. But he said it might take awhile for digital coupons to take off among grocery shoppers.

"If you're very computer savvy, this is probably a plus," he said. "But if you're more of a traditionalist, paper is familiar and this is not."

Meyers said the early grocery efforts have room for improvement. Shoppers still have to invest time looking through the online coupons to pick the ones they want.

Ken Fenyo, Kroger's vice president for corporate loyalty, said Kroger means to complement traditional paper coupons but expects to expand its current pilot program as part of its recently overhauled Web site.

"We really are just trying to provide more options, not take things away," he said. "We know many of our customers are online heavily anyway."

Some grocers are also offering in-store paperless coupons. Chicago-based Unicous Marketing Inc. said regional chains, such as Springfield, Mass.-based Big Y, are trying its EZ-PIC program in which "instant coupons" are advertised on store shelves and cut the item price electronically at checkout. Among participating manufacturers are Chicken of the Sea tuna, Ocean Spray juice drinks and Borden milk.

Fenyo said Kroger will broaden its program, using e-mails to alert customers that coupons for products they regularly buy are available online, and is in contact with other manufacturers about offering digital coupons for their products.

Matt Kemme, a P&G marketing manager, said the company sees good security and strong consumer targeting opportunities with the digital coupons and expects to expand its "eSavers" beyond the current test.

"It's very early, but we've been able to run the water through the pipes and from what we've seen, things are looking pretty good," Kemme said.

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