A New Superpower for Independent Retail Pharmacies
By: Karen Deckard, Director of Sales & Marketing at Retail Management Solutions
More than $100 billion in coupons are distributed each year, and roughly 75% still come in traditional paper format. That reliance on paper opens the door to an estimated $300–$600 million in annual fraud. It also creates a host of operational headaches for retailers, from manual reconciliation to slow, resource‑intensive reimbursement processes.
Yet coupons remain popular, used by an estimated 90% of consumers.1 In 2023, 850 million coupons were redeemed in the US, which was up 10% from 2022.2
Enter the 8112 digital coupon, a new couponing standard poised to fully replace traditional paper couponing altogether. In this article, we’ll explore the details of 8112 digital couponing and why retail pharmacies should adopt this technology as soon as possible.
A Brief History of 8112 Digital Coupons
In 2016, the Joint Industry Coupon Council and the Association of Coupon Professionals partnered to identify a solution for mobile couponing that would be retailer agnostic, reduce fraud, and not require additional infrastructure and hardware for retailers. The result of this partnership was the creation of a new coupon type, identified as the Universal Coupon AI (8112) standard, spearheaded by a new organization: The Coupon Bureau.
8112 digital coupons officially arrived on the scene in 2020. These serialized digital coupons are issued in a mobile-first, direct-to-consumer format. Since their creation, 8112 digital coupon offers have increased year over year, with digital redemptions now overtaking traditional paper coupons.3
How Digital Couponing Works
Ease of use for consumers and retailers was a major consideration in the creation of the AI (8112) standard. Any retailer can accept them through connection with the centralized offer database hosted by The Coupon Bureau. This means digital coupons can be used and redeemed without the retailer creating their own app and infrastructure. Here’s how the process works:
- Retailers supporting digital coupon redemption can display offers in-store and online.
- Customers use their smartphones to scan a QR code for each promo they’d like to “clip” and add to their digital wallet.
- If they’ve never used the digital couponing app before, they’ll be automatically redirected to install the application.
- The app will generate a single barcode for all the “clipped” coupons.
- At the register, the clerk scans the single barcode from the app on the customer’s phone. All eligible coupons are automatically applied to the transaction.
- Coupons are cleared, and reimbursements are processed through an automated, paper-free process.
- Reimbursements are provided to the retailer at an accelerated rate.
Why Should Pharmacies Care?
We know that couponing drives consumer behavior. In fact, polling shows that coupons drive shoppers to buy more, buy faster, and explore new brands.4 We also know that the motivations and strategies that drive traditional retail don’t always apply to pharmacies in the same way. Independent pharmacies often find themselves in need of a solution, but unable to take action due to the complexities involved with the retail pharmacy vertical.
In the case of digital couponing, however, action is both imperative and possible. The Coupon Bureau and the AI (8112) standard offer a unique opportunity for independent retailers to take advantage of technology usually reserved for large chains.
With the benefits of fraud prevention and real-time validation offered by the AI (8112) standard, manufacturers can extend more offers. And, because The Coupon Bureau’s processes are retailer agnostic, the same digital couponing strategy that has been employed by CVS since December 2024 can be used today by a single-location pharmacy.
At Thrifty White Pharmacy, 8112 digital coupon acceptance was recently rolled out across 90 independently owned retail locations, in partnership with Retail Management Solutions and nData Services. Thrifty White’s Vice President of Pharmacy Operations, Jeremy Faulks, stated, “The 8112 standard provides a more secure and efficient way to handle coupons at the point of sale. Adopting 8112 digital coupons aligns with our commitment to convenient, community‑focused care while maintaining secure and efficient store operations.”
Digital couponing also extends beyond manufacturer offers. Retailers can create their own custom digital coupons, expanding the reach of in‑store promotions and delivering a more seamless coupon experience for customers. Taking this proactive approach even further, pharmacies using the Coupon24 app—in partnership with nData for coupon redemption and clearing—can market directly to customers who download the app for the first time using their unique QR code.
Hartig Drug, an early adopter of 8112 digital couponing, ran a special campaign to augment an existing manufacturer promotion. With advance knowledge of an upcoming manufacturer coupon, Hartig was able to plan and promote an additional discount—beating out local chain competition on a commonly used product. John Freund, Director of Business Operations for Hartig Drug, shared, “We are thrilled to introduce this cutting‑edge 8112 coupon technology, enabling our customers to discover savings on new and familiar products.”
Getting Started with 8112
Connecting with the right technology providers for 8112 coupon acceptance will help you take full advantage of manufacturer offers and customized promotional opportunities.
In partnership with The Coupon Bureau, nData Services provides infrastructure for settlement, reporting, and reimbursement. nData works with point-of-sale providers, like Retail Management Solutions, to bring streamlined 8112 acceptance to independent retailers.
About Retail Management Solutions
Retail Management Solutions is an industry leader in pharmacy point-of-sale (POS) technology, dedicated to helping independent and outpatient pharmacies thrive. Since 1998, RMS has provided innovative, pharmacy-focused solutions that streamline operations, improve patient care, and drive profitability.
Karen Deckard is the Director of Sales & Marketing for Retail Management Solutions. Karen is passionate about helping independent pharmacies improve profitability, optimize operations, and create unmatched customer experience through technology-based solutions.
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