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Savvy Marketing for Savvy Shoppers
Why using coupons matters - for consumers, retailers & manufacturers
1 Mark Arnold, M-Cubed Consultancy, 2013. [email protected]
Searching for deals is the new norm; and growing in favour
Fuelled by the slow economic recovery, shopping habits across all demographics have changed.
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74% groceries 61% restaurants 43% clothes 32% books 31% electronics
What are coupons used for?
448m Total redemptions in 2012, + 33%
77% Of shoppers admit to feeling pressured to shop around for a deal
61% Of shoppers use coupons, +17%
74% Of AB households plan to use coupons (59% on average)
Consumer benefits • Value for money • Convenience
• Relevance
• Decision making
• Perceived value
17% redemption decline in US (NCH Marketing 2013)
“I can’t find coupons for the products I want to buy” 46% of shoppers
Mark Arnold, M-Cubed Consultancy, 2013. [email protected]
Coupons provide flexibility and control for different marketing/operational goals
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Goal/benefit
Grow market share
Attract new customers, entice lost customers. Expand markets via viral/social sharing activity. Attract new demographics via digital channels. 37% of shoppers looking for more offers than last year - Valassis
Application – retailers and product manufacturers
Foster loyalty
Reward with offers/discounts and reassure on price. Deliver value & relevance for different customer segments. 71% - likely to be more loyal to a brand – Forrester 2012
Increase customer
value
Encourage upsell and cross-sell of existing and new products. Encourage multiple purchases. Active users (6+ redemptions in 12mths) – 71% higher average spend then light users – Forrester 2012
Increase footfall Encourage store traffic for individual stores – new/declining stores, store openings
Launch products
Trial and test reactions to new products – geographically, by retailer, by store, by customer segment, by time period. Adapt for seasonal products/brands. 68% of coupon users trial new brands – Forrester 2012
Manage stock levels
Direct redemptions to specific retailers. Reduce excess stock and discontinued stock lines.
Mark Arnold, M-Cubed Consultancy, 2013. [email protected]
65%
Coupons influence purchase decisions on a complex shopper journey
In-store or online, it’s a crowded, competitive environment with a vast range of influences - difficult for shoppers to make a choice or do the comparative math.
Coupons drive: Resonance Engagement Conversion
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Search
Evaluate
Buy
In-store At
home
On the go
Location
Perception
Friends Reviews
“Coupons often finalise the decision for me if I’m undecided” Forrester 2012
Right offer; Right time; Right channel
Mark Arnold, M-Cubed Consultancy, 2013. [email protected]
Distribution and redemption options have evolved for the digital age
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New distribution and redemption technologies offer a more rewarding experience for shoppers and improved financial returns for retailers and manufacturers. 7% of consumers redeem digital coupons – 250% growth rate in 12 months – Valassis 2012
Apple Passbook Email/print at home Mobile location Social integration
Distribution channels
Be#er brand engagement Greater shopper convenience Earlier buying decisions 10% vs. 1% redemp=on rate
Benefits
Near Field Communication
Redemption technology
E-Clearing SmartPIN Less =me at =ll Improved cash flow Real-‐=me, deeper insights Quicker, flexible changes
Mark Arnold, M-Cubed Consultancy, 2013. [email protected]
Multi-channel delivery options allow integrated communications
Mark Arnold 2013. [email protected] 6
Newspapers
Direct mail
Point of sale
Mobile
Loyalty card
On-pack
ATM
In summary
Coupons …
• Deliver value, price differentiation and personal relevance for shoppers brand/outlet choices.
• Finalise quicker shopper purchasing decisions. • Change shopper behaviour, benefitting a range of marketing & operational goals.
• Work within a multi-channel marketing mix and shopper journey.
• Create a lasting connection in a competitive, deal driven environment.
Mark Arnold 2013. [email protected] 7
