How vouchers and discounts are changing consumer behaviour

Contacts:

Louise VacherConsulting Director, Consumer divisionT: +44 (0) 207 012 6156E: louise.vacher@yougov.com

Research conducted among 2,000 GB adultsJune 2013

Understanding the economic context

Average disposable income has declined

from £6,500 p.a. in

mid-2010 to £5,500 in early 2102

Only households earning

more than £100,000 p.a. expect their financial situation to improve in the next 12 months

However…

there has been a small but steady increase in average disposable

income 2013 to

£5,750

The number of people saying they will spend

more on buying clothes, eating out and going out is increasing

Source: YouGov HEAT study, July 2013

Mobile app

Daily deal sites eg. Wowcher, Groupon

Voucher code website

Printed voucher from a store/ newspaper/ direct mail

Discounting is an established facet of consumer behaviour

82% of GB adults have used some form of discount or voucher

24%

41%

38%

71%

Base: all GB adults

Who uses voucher code websites?

…and femaleUsers are slightly more likely to be 25-44…

Spread across Britain: no geographic hotspots

65% have a Smartphone

33% have a tablet

18-24

25-34

35-44

45-54

55+

12%

22%

22%

19%

25%

41%

59%

Base: users of vouchercode websites

Gender App users Printed voucher users

Male 52% 42%

Female 48% 58%

Not surprisingly, app users are more likely to be younger ABC1s while older females are more likely to use more traditional methods

Base: all users of mobile apps/printed vouchers

Social Grade App users Printed voucher users

ABC1 55% 57%

C2DE 45% 43%

Age App users Printed voucher users

18-24 19% 10%

25-34 26% 15%

35-44 23% 19%

45-54 18% 21%

55+ 14% 35%

Smartphone operating system

w1 w2 w3 w4 W5 W6 w7 w8 w9 w10 w11 w12 w13 w14

0%

10%

20%

30%

40%

50%

3%

5%

3% 3%2% 2%

1%2% 2%

3%

1%2%

1% 1%

17%

10%9%

7%6% 6%

5%

3%

5%

3%2% 2% 2%

1%

19%

10%9%

10%

3%2% 2%

1% 1% 1%0% 0% 0%

1%2%

1%2% 2% 2% 2%

3% 3% 3%

0%1% 1%

11%12% 12%

13%12%

9%

12%

9%

12%

9%

11%

7%8% 8%

6%

8%9%

10%

20%

25%

29%30%

35%

41% 41%40% 40%

41%

20%

25%

27% 27%

29%

25%26%

33%

24%

26%

24%25%

28%

26%

Source: YouGov Smartphone Tracker Base: Nat Rep respondents who own a smartphone (2965)

P19Q1 – What operating system does your [CURRENT HANDSET] use?

Windows Mobile 6.5

Windows 8

Symbian

BlackBerryiOSAndroid

Other

Windows 7

Android has taken over from iOS as the most used operating system, but Apple users download more apps

Average number of apps

downloaded

(By marketplace)

28

18

8

11

Groupon

Moneysupermarket.com

Wowcher

Orange/EE Wednesdays

O2 Priority Moments

Myvouchercodes.co.uk

Vouchercodes.co.uk

Travelzoo

Taste Card

KGB

Livingsocial

secretsales.com

Vouchercloud

Barclays Bespoke offers

Gourmet Society

Coupons.com

Netvouchercodes

Voucherseeker

79%

76%

67%

58%

43%

42%

41%

26%

25%

21%

21%

19%

18%

17%

15%

15%

15%

10%

8

Sites/companies aware of

Groupon

Moneysupermarket.com

Wowcher

Orange/EE Wednesdays

O2 Priority Moments

Myvouchercodes.co.uk

Vouchercodes.co.uk

Travelzoo

Taste Card

KGB

Livingsocial

secretsales.com

Vouchercloud

Barclays Bespoke offers

Gourmet Society

Coupons.com

Netvouchercodes

Voucherseeker

27%

22%

8%

21%

8%

13%

15%

7%

9%

6%

7%

3%

5%

3%

4%

4%

2%

2%

Wowcher has the lowest usage : awareness ratio

Orange/EE, Vouchercodes and Taste Card have the

highest usage : awareness ratio

Sites/companies used

Which sites are consumers using?

Base: all GB adults

Voucher usage extends across a wide range of sectors

Shopping55%

Dining 39%

Entertainment

26%Travel19%

Beauty19%

Base: all GB adults

For some, the likelihood of paying full price is now minimal

Base: those who use vouchers/discounts in each category

Hotels

Cinema

Travel

Mailorder fashion

High street dining

Grocery stores

High street fashion

16%

18%

11%

7%

13%

3%

2%

57%

40%

42%

40%

31%

13%

14%

22%

33%

34%

42%

47%

68%

45%

5%

9%

13%

11%

9%

16%

39%

73%

58%

53%

47%

44%

16%

16%

Often pay full price - sometimes use voucher/discount code Almost always pay full price - rarely use voucher/discount codeColumn2 Column22

% rarely/never pay full price

“I now expect to get some form of deal or discount…”

Base : those who use vouchers/discounts in each category : strongly agree or somewhat agree

Travel

42% Agree

Shopping

23% Agree

Beauty

38% Agree

27% Agree

Dining

34% Agree

Entertainment

Savvy shoppers are adapting their behaviour

Base: all those who use vouchers/discounts codes for retail/dining

Have you changed your choice of retail outlet at the last minute as a result of a

voucher offer?

No, I stick with the outlets I

know best

40%

40%

No 66%

Don’t know

8% 26%D

on’t know 7%

No 63%

30%

Have you changed your choice of dining venue at the last minute as a result of a

voucher offer?

Vouchers/discounts encourage trial….

Travel

Beauty

Dining

Retail

Entertainment

51%

42%

38%

38%

37%

% of voucher/discount users who have used brand they wouldn’t otherwise have done

Base: those who use vouchers/discounts in each category

…and repeat business

% of voucher/discount users who have continued to use the outlet since

Base: those who use vouchers/discounts in each category

81% have visited/used again

71% have visited/used again

83% have visited/used again

80% have visited/used again

78% have visited/used again

TR

AV

EL

BE

AU

TY

DIN

ING

RE

TAIL

EN

T’T

Unaware

Too much hassle

Not available for what they want

Encourage to spend money

By the time you've gone through the t&c's of a voucher to see if you are eligible you'd have been better off paying the extra 30p

for that coffee.

Never seen the point and don't

trust them.

They're very specific and time limited. I would rather not trawl through their

websites to find a voucher applicable to me.

Because they encourage you to spend money when you really can't afford to.

I don't buy much because I don't need much and vouchers just encourage people to by a load of toot

that they don't need or really want. can't be bothered; good enough bargains to be had on ebay - all in the same

place.

I find that once you have printed them off or try to use them there are a hundred and one different terms and conditions that

make it too onerous to actually use them

Don’t trust them

I don't think I trust them. I don't like giving out my information too much and getting

lots of spam back.there is always a catch and it seems to be

more expensive than normal price you would spend for a certain item.

What are the barriers to using vouchers/discount codes?

I assume that they'll be vouchers on things I don't buy

Open question:  Why have you never used vouchers or discount codes?

Is there a potential negative impact?

36% get a buzz from using discounts/vouchers

33% feel special when they receive exclusive offers from companies they are a

customer of

Only 18% feel cheated if they receive an offer via e-mail/text/direct mail, to find the promotion is open to all

Only 19% question a brand’s quality when they offer multiple offers

Base: those who use vouchers/discounts

However 1 in 4 users say they get frustrated being bombarded with offers: a potential watch-out for the future?