Couponing in the Digital Age: A 360i Playbook for CPG Brands
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
No Downloads

Views

Total Views
16,889
On Slideshare
15,910
From Embeds
979
Number of Embeds
7

Actions

Shares
Downloads
1,208
Comments
1
Likes
37

Embeds 979

http://blog.360i.com 648
http://www.slideshare.net 273
url_unknown 53
http://www.aaramshoppro.com 2
http://www.twylah.com 1
http://pinterest.com 1
https://twitter.com 1

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Tweet this
  • 2. Table of Contents ˺ Digital Coupon Landscape p3 ˺ Foreword p4 ˺ Acknowledgements p5 ArTiCles ˺ Digital Coupons Overview: Ten reasons digital coupons matter right now p6 ˺ The digital coupon target p9 ˺ Evaluating digital coupons for your brand p11 ˺ Digital Incentives: A clarification between coupons & offers p13 ˺ The Basics of Digital Couponing p14 ˺ The differences between digital & traditional coupons p15 ˺ Considerations for using digital coupons p17 ˺ Digital Coupons: A strategy or a tactic? p20 ˺ Digital Coupon Delivery p21 ˺ Couponing Innovations p23 ˺ Measuring Success p32 ˺ Conclusion p33 ConTribuTor ArTiCles ˺ Spotlight On: Kraft Foods p10 an interview with Joan Francolini - Sr. Director, Brand and Customer Engagement and Ed Kaczmarek - Director of Innovation, Consumer Experiences ˺ Spotlight On: Coupons.com p18 an interview with Steven Boal, CEO ˺ Spotlight On: MyWebGrocer p30 an interview with Gregg Vincent, VP of Consumer Products02 blog.360i.com / @360i
  • 3. Digital Coupon Landscape03 Couponing in the Digital Age: A Playbook for CPG Brands Digital Coupon Landscape blog.360i.com / @360i
  • 4. ForewordF rom the recession has emerged a new budget- conscious America that is driving a marked shiftin consumer behavior around coupons. Today, digital Digital coupons are more flexible, efficient and more effective at enticing new buyers. They also appeal to a more attractive demographic (Millennials and othercoupons represent a growing portion of the overall digital natives). Beyond this, the benefits of digitalcoupon market. Given the pace of change in media and coupons are many. They offer improved personalization,the mobile landscape in particular, digital coupons protection against fraud, opportunities for socialization,present tremendous opportunities for marketers with a greater convenience, and more.vision. This playbook focuses on the most prevalent digitalA new generation of digital-minded consumers prefers to coupon and incentive programs available forread news online and via mobile devices, as opposed to packaged goods marketers, with the goal of creating avia the traditional Sunday newspaper, which for decades comprehensive guide to the various opportunities. Inhas been the main distribution outlet for traditional the pages that follow, we present an overview of thecoupons. This generation of digital natives will not landscape in addition to tips for maximizing marketingspend their time clipping coupons in the kitchen. They objectives through the use of digital coupons.will instead explore new ways to engage with couponsdigitally. — June 201104 Couponing in the Digital Age: A Playbook for CPG Brands Foreword blog.360i.com / @360i
  • 5. Acknowledgements S everal individuals graciously lent their time and talents to the production of this report. We’d like to take this opportunity to thank them for their contributions. To our featured columnists: Steven Boal, Joan Francolini, Ed Kaczmarek and Gregg Vincent – thank you all for sharing your keen insights with us and our readers. We would also like to recognize Coupons.com, SmartSource, Cellfire and SocialTwist for their valuable input. Thanks also to the 360i team who wrote, edited, designed and managed this report: Andy Amendola, Gerardo Aquino, David Berkowitz, Amanda Bird, Kelly Dudine, Sarah Hofstetter, Dave Jacobs, Irina Kondrashova, R.G. Logan, Lee Maicon and Katie Perry. And advanced thanks to the readers who are moved to comment, share, critique, tweet, scan, blog or generally discuss the contents herein. We encourage you to reach out and share your thoughts directly with us any time at editor@360i.com, via feedback on our blog at blog.360i.com or on Twitter @360i. sHAre THis PlAYbooK on:05 Couponing in the Digital Age: A Playbook for CPG Brands Acknowledgements blog.360i.com / @360i
  • 6. Digital Coupon overview: Ten reasons digital coupons matter right now us Adult online Coupon users, 2009-2013 % of inTerneT uSerS ADulT online CouPon uSerS (MillionS) 96.8m 88.2m 92.5m 83.6m 77.4m 46% 47% 48% 49% 44% 2009 2010 2012 2013 2011 By 2013, 96.8 million adults will redeem an online coupon. Source: eMarketer, May 2011. 1. The new normal means couponing is here to stay. The person holding up the line with his or her coupons Because of the length of the recession and slow recovery, is no longer frowned upon or pitied because of tough many people will not abandon their newly adopted times; instead, they are seen as a savvy shopper. Digital frugality and continue to use money-saving techniques empowers these types of consumers, giving them the like coupons. It’s becoming part of their daily routine. tools to find the very best deals available." More and more consumers are making digital 3. newspaper readership is declining, meaning less coupons a part of their shopping routine, accessing access to newspaper circulars or free standing insertsthem across the entire digital domain - including the web, (FSIs), the coupons you find in your Sunday newspaper.in social media, with consumer electronics, via their mobile FSIs are distributed by two key players in the traditionalphones, etcetera. At the same time, brand marketers are coupon industry – News Corporation’s SmartSourceincreasingly engaging with consumers via digital offers, (News America) and Valassis. In 2010, FSIs representedwanting to influence shoppers throughout their path to over 87% of total coupon distribution. As the Sundaypurchase.” –Steven Boal, CEO of Coupons.com newspaper distribution declines at a faster and faster rate, digital coupons will become an increasingly 2. Couponing and saving have cultural cachet. Saving effective way to supplement traditional coupons (Source: is becoming an expected behavior among Americans. Valassis). 06 Couponing in the Digital Age: A Playbook for CPG Brands Digital Coupon Overview: Ten reasons digital coupons matter right now blog.360i.com / @360i
  • 7. 4. Digital coupons are more efficient and have higher 7. Digital coupons are attracting a different audienceredemption rates. Brands can be much more targeted than traditional coupons. Consumers who are usingwith digital coupons. Instead of buying the mass reach digital coupons represent a desirable group. Digitalof traditional FSIs, brands can tailor their approach coupon printers are 35% more likely to have a householdwith the pay-for-performance model used by digital income of $75K+ compared to the general population.coupon suppliers. As such, digital coupons have They are also more educated. Digital coupon printersredemption rates that are nearly 20x higher than FSIs are 17% more likely to have college or advanced degreesand significantly higher rates than direct mail and than the general population. Additionally, digital couponelectronically-dispensed coupons. users are younger and more likely to live in households with more children (Source: Simmons Market Research5. smartphone penetration is increasing. Mobile means Bureau).access anytime, anywhere, as people have their mobilephones on them all of the time. Greater smartphone 8. The digital coupons industry is growing fast.adoption paired with constant technological innovation Traditional coupons may still hold the lion’s share ofis critical to the growth of digital coupons and shopper the market, but digital coupons are growing faster.marketing as a whole. Mobile is a great platform to Retailers are using digital coupons to drive consumers toreach and interact with consumers in or near the their websites. Brands can also benefit from the shorterpurchase phase of the shopping cycle via location-based lead times that digital coupons offer, as well as gettingprograms. As more and more consumers adopt and around any exclusivity restrictions, among other benefitsbecome comfortable with smartphones, the opportunities (Source: Advertising Age, November 2010). Accordingfor mobile couponing and shopper marketing will only to 2010 research from Kantar Media, digital couponincrease. redemptions are expected to grow 25% this year.6. The internet has become a key part of everyone’s 9. The Zero Moment of Truth shows how consumerdaily lives. A Forrester research report from December behavior is changing. It was was widely believed that the2010 found that for the first time ever, the average “first moment of truth” – the phrase coined by ProcterAmerican spends as much time surfing the web as he or & Gamble for the three to seven second window whenshe does surfing channels on TV, approximately 13 hours shoppers evaluate a product on a store shelf – was theper week. As consumers spend more time online, they key decision making point for a consumer on the path towill naturally seek out more deals and coupons while purchase. Evolution of consumer behavior has changedonline. The popularity of daily deal sites such as Groupon this. Online search and social media now have peopleand the myriad copycats is further evidence of this trend. coming into store prepared and with intent to07 Couponing in the Digital Age: A Playbook for CPG Brands Digital Coupon Overview: Ten reasons digital coupons matter right now blog.360i.com / @360i
  • 8. in-STore Before enTerinG 75% 83% 83% 60% 40% 25% 17% 17% 2007 2008 2009 2010 A study from Symphony IRI Group found that more than 80% of shoppers make their purchase decisions before ever entering the store. " purchase particular products based on what they While the first moment of truth is stillhave learned online. Given this shift, Google has coined important, the rise of full Internet adoptiona new term: the “Zero Moment of Truth,” or ZMOT. and increased search engine use often lead to many brand interactions taking place between a10. You can get ahead of this emerging and enduring consumer and a brand before that consumer evershift in consumer behavior. The day of the Sunday paper sees a product on a shelf.” –Google CPG Blogis fading, but there is a new generation of consumersthat still wants to save. Right now digital couponinghas yet to become a fully mainstream behavior, butwhoever can make digital coupons more seamlessand easy to use for consumers will benefit vastly.08 Couponing in the Digital Age: A Playbook for CPG Brands Digital Coupon Overview: Ten reasons digital coupons matter right now blog.360i.com / @360i
  • 9. The digital coupon target 360i Persona: "Coupon Carla"T he Insights & Planning team at 360i recently analyzed the persona of a typical digital couponuser, informed by Nielsen @Plan. The market size this Gender: 66% female; 34% male Average Age: 46 Marital Status: 61% marriedaudience was found to be 19.6% of all online audiences. Average HHi: $72K employment: 70% employed full/part-timeConsumers who download online coupons tend to be education: grad/post grad 166 indexmarried women in their mid-30s to late 40s who are morelikely to be college educated. They are task-oriented TeCHnologY AnD MeDiA ProFileusers of the Internet, looking for specific information and online and social Coupon Carla is highly engagedusing the web as a means to stay organized. They are also online, always in the know among her social networks,well-versed in navigating necessary search tools, blogs sharing links and information.and forums to retrieve relevant information. Couponersare highly social and tend to be creators, interacting with staying informed Coupon Carla uses the Internet asuser-generated videos, posting photos and commenting a means to gather data - to keep her organized andon blogs, forums and social networks. informed about best deals, local happenings, new entertainment news and movie releases, recipes and funRight now, these consumers tend to be offline coupon tid-bits to keep her household running smoothly.clippers as well. Beyond saving money, coupons let them oFFline ProFiletry new products and provide a thrill for the bargainhunters among them. green lifestyle She is more enviromentally aware, and feels good about shopping for green products. TendingAside from a generic “coupons” keyword search, the most to her vegetable garden is one of her favorite leisureprevalent coupon searches are “printable coupons” and activities, plus, fresh produce keeps her diet going!“online coupon codes.” A socialite Coupon Carla loves to entertain informally at home, visit parks and attend various cultural events. When she saves money on buying products, she spends it on fun experiences with her friends and family.09 Couponing in the Digital Age: A Playbook for CPG Brands The digital coupon target blog.360i.com / @360i
  • 10. spotlight on: Kraft Foodsan interview withJoan Francolini - Sr. Director, Brand and Customer EngagementEd Kaczmarek - Director of Innovation, Consumer ExperiencesWhat’s one example of how Kraft is using digital coupons from being used more by marketers?today? The most powerful benefits of digital coupons areKraft is using digital coupons via digital FSIs and retailer the ability to 1) target consumer offers based on theirprograms. We are using them to drive purchases, reach purchase habits, and 2) execute a quick-to-market couponnew audiences and tap into the growth of coupons offered strategy at a lower non-working cost. It’s likely thatdigitally. Moving forward, we’d like explore how to reduce some marketers are concerned about fraud (i.e. copyingthe costs of direct-to-card backend processing and coupons) and the increased liability that goes along witheliminate the option of “stacking” with direct to card. We’re it, though Kraft Foods has not found this to be an issue.also exploring how to link the use of digital coupons toincreased in-store support. What does the future of digital couponing look like? What are some predictions you have for the coming years?How do digital coupons work with or alongsidetraditional coupons? Expect to see more direct-to-card opportunities via mobile, as well as redemption via scanning directlyDepending on the brand, digital coupons can be used as from a mobile device. We believe that mobile couponinga quick hit way to distribute coupons, as an add-on to an will eventually reach critical mass as redemptionFSI, as a replacement for an FSI, or as a targeted program. integration becomes more prevalent across grocery andWe try not to duplicate offers online and in print, as many mass-merchandise stores. Personalization and uber-coupon users are checking multiple areas for coupons. customization based on purchase data will exponentially increase relevance and enable manufacturers to moreWhat are the greatest opportunities that digital coupons efficiently leverage mobile to maximize sales and loyalty.hold for Kraft? And what is holding back digital coupons10 Couponing in the Digital Age: A Playbook for CPG Brands Spotlight On: Kraft Foods blog.360i.com / @360i
  • 11. evaluating digital coupons for your brandWhen considering if, when, and how to use digital coupons for your brand, you can applythe same strategic analysis you would for larger digital programs. In fact, the Strategic Lensthat was described in 360i’s Social Marketing and Mobile Marketing Playbooks can still beapplied to digital coupons. You can use this lens as a way to target your evaluation when itcomes to what’s best for your brand’s needs.Does it leverage your arsenal? to serve them with digital coupons. Because some typesDigital coupons offer a great way to connect digital of digital coupons are not yet mainstream, knowing yourcampaigns to in-store trial and purchase. Consider the target’s comfort level regarding various digital platformscampaign elements or brand arsenal that and devices will help you achieve success.you have to work with and incorporate Mobile coupons, for example, skew moredigital coupons to help consumers towards early adopters of technologyalong the decision making process. and may not be appropriate for a lessFor example, to launch Cooking digitally savvy group.Crème, Philadelphia CreamCheese offered coupons to the Does it provide a value exchange?existing Paula Deen Real Women When asking your consumersof Philadelphia community. to take action, they should beProviding more context to a rewarded in like value. Executionsdigital coupon campaign will like progressive coupons andattract more of your consumers in tell-a-friend coupons mean thataddition to those just seeking coupons. as consumers work to spread your coupons and brand message they shouldDoes it follow the rules of the road? be rewarded in turn. Ideally, the value youUnderstanding which digital platforms are most used by assign to your coupons will be of equal or greater valueyour target audience will help determine where and how to the actions necessary to redeem them.11 Couponing in the Digital Age: A Playbook for CPG Brands Evaluating digital coupons for your brand blog.360i.com / @360i
  • 12. There is no single “right” value that all brands can Does it meet your objectives?offer. The discount value should vary by brand, and be Knowing what you hope to accomplish with your digitalinfluenced by a variety of factors. Brands should consider coupon campaign is a very important step. Setting cleartheir coupon budget and what they hope to achieve with objectives will inform your decision-making when itdigital coupons before assigning a value. If the budget is comes to determining which coupon delivery systemsmall and they hope to reach more people, then assigning to use. For example, a progressive coupon may be aa lesser value might be a better strategy. If the product great way to build fans on a social community, but ifis unknown, a larger value may be necessary to motivate you want to launch a new product and need more reach,purchase. We recommend testing a variety of different a digital FSI may be more appropriate. Also, settingvalues of coupons to see which offer works best. Such clear objectives will allow you to determine the successcomprehensive testing is something that is only possible metrics you will ultimately use to analyze your program.with digital coupons.12 Couponing in the Digital Age: A Playbook for CPG Brands Evaluating digital coupons for your brand blog.360i.com / @360i
  • 13. Digital incentives:A clarification between coupons & offersThere is a wide variety of ways to incentivize purchases online. Much of the recentgrowth in online shopping is fueled by “offers,” which are discounts for service, local retail,restaurants, and the like. Offers differ from coupons used by manufacturers to providediscounts for their products. This report focuses exclusively on CPG coupons. Digital Couponing 101: e-Commerce Coupon Codes With the growth of e-Commerce DealTaker.com. Typically discounts appear on has come the growth of searching these sites without the brands knowledge or for coupon codes prior to making permission. However, if a brand is looking to purchases online. For example maximize reach for their offer, they could allow consumers will search for “Orbitz Coupon Codes” coupons or codes to be distributed on these types prior to booking travel with the hope of attaining of sites. To prevent over-redemption, or to limit a promotional code that will save them money your coupons to your target consumers, brands upon checkout. Some of the better-known sites are not advised to pursue opportunities with for this type of coupon are RetailMeNot.com and these types of sites.13 Couponing in the Digital Age: A Playbook for CPG Brands Digital Incentives: A clarification between coupons & offers blog.360i.com / @360i
  • 14. The basics of Digital CouponingG iven the flexibility of the digital medium, a to purchase products for which they have coupons in digital coupon can be placed almost anywhere, hand, as oppose to having to remember what they loaded added to any campaign and delivered to onto their loyalty cards at an earlier time.people in a number of ways. However, supermarkets,grocery stores and other venues where consumer goods An exception to these two main delivery methods isare sold can only accept coupons in two provided by the retailer Target, which hasprimary ways due to their technological the technology to scan barcodes onrestrictions. To be redeemed at a cash consumers’ mobile phones. Also, thereregister, digital coupons must either are some apps such as CardStar, whichbe printed by the consumer or loaded aggregate your loyalty cards onto yourvirtually onto a supermarket loyalty phone so you can just present yourcard. phone at checkout. Unfortunately, these don’t always work well at theAccording to a prominent digital register. Retailers make money bycoupon supplier, redemption rates quickly checking out customers and asfor printed coupons are about 15%, such, anything that slows that processwhereas those for loyalty card coupons down is not welcome. At present, theare around 10%. Higher redemption technology used in Target stores hasrates for printed coupons occur because not been adopted by any other largeconsumers are more likely to remember retail chains.14 Couponing in the Digital Age: A Playbook for CPG Brands The Basics of Digital Couponing blog.360i.com / @360i
  • 15. The differences betweendigital & traditional couponsFor consumers, one of the key differentiators between digital and traditionalcoupons is convenience. Once a coupon is online, it is easy for Internet users tosearch and find it – and they no longer have to pay and wait for Sunday newspapersfind coupons. We list some of the advantages of using digital coupons below. ˺ Higher redemption rates: The fact % redemption Value % Analyzed that coupons are either targeted to Traditional fSi Digital fSi consumers or sought out by them has < 40% 7% 0% lead to improved redemption rates. The consumer is taking the time to print out 40% - 49.9% 11% 0% coupons so he or she is more likely to 49.9 - 59.9% use them. 14% 6% Digital FSIs drive 24% more 59.9 - 69.9% 25% 12% incremental redemptions than 69.9 - 79.9% traditional FSIs (digital at 78% vs. 25% 35% traditional at 63%). > 80% 18% 47% 82% of analyzed Digital FSI events achieve 60% or greater incrementalSource: Knowledge Networks Normative Database. Data Period: CY 2008 and CY 2009. N= 17 Digital and 28 Traditional recently analyzed FSIs in similar categories: 4 Edible Grocery redemptions compared to 68% forand 1 Non-Food Category Traditional FSIs.15 Couponing in the Digital Age: A Playbook for CPG Brands The differences between digital & traditional coupons blog.360i.com / @360i
  • 16. ˺ sharability: Digital coupons can be easily shared and spread around by consumers. When this happens, coupon offers may become exhausted earlier. Digital Couponing 101: The difference between generally˺ Capture demand: Marketers can use digital accepted manufacturer coupons and coupons to attract consumers who are customer coupons searching for a particular product or brand. When a manufacturer˺ new buyers: A new report shows that digital coupons decides to launch a digital are 35% better at attracting previous non-buyers coupon campaign via a and attracting more new buyers than print coupons digital coupon supplier, they (Source: Knowledge Works Trend Report, 2011). can choose to have their coupons served as generally accepted coupons or as customer˺ Timing: Digital coupons can run continuously and can coupons. The former is a print-at-home be created with relative ease compared to traditional type coupon which can be redeemed by the coupons. A digital coupon campaign, when working consumer at any grocery store selling that with a digital coupon supplier or aggregator, can item. When the manufacturer chooses the be live within 72 hours, while traditional campaigns latter, the user can only use that coupon at typically take up to eight weeks to begin. the specified retailer chain.˺ lower costs: Digital coupons pass the cost of printing Customer coupons are generally delivered to consumers. Also, brands can set a print limit per IP directly to loyalty cards via the retailers’ address so consumers can only print a single coupon. websites or some mobile applications. Most coupons fall into the “generally accepted”˺ Metrics: Digital coupons can offer better category, as it is more beneficial to both tracking opportunities for brands as they can brand and consumer that consumers be able receive information on consumers printing to maximize redemption opportunities. digital coupons right from the beginning of the campaign launch. Traditional redemption data takes approximately eight weeks to gather.16 Couponing in the Digital Age: A Playbook for CPG Brands The differences between digital & traditional coupons blog.360i.com / @360i
  • 17. Considerations for using digital couponsThe consumer experience for digital coupons is constantly evolving – and, as advanced asdigital coupons may seem, there are still some barriers to mainstream adoption.˺ Application download: Some coupon programs require may not be the same as the digital coupon audience. users to download an application in order to access the In April 2011, Experian Simmons’ John Fetto told offer, and this additional step may cause some users to MediaPost that people who use coupons are more " drop off prior to redemption. likely to use all kinds of 99% of digital coupon coupons. Moreover, digital users said their house-˺ Printing: Printing coupons adds a level of complexity couponers tend to be more hold also used print coupons, for consumers, who likely only have one or two extreme coupon users. compared with 35% of print chances to print out the coupon before losing out on couponers using digital cou- the offer. Most suppliers will allow two chances to ˺ Paid media support: pons. Digital coupon users also print per user because of the difficulty associated with Sometimes additional used them for a wider variety printing the coupon correctly the first time. paid media support will of purchases and at a greater be necessary to achieve variety of stores than those˺ in-store experience: Not all retailers accept printed campaign print goals. who used only print coupons.” coupons. –John Fetto, Experian SimonsMarketer considerations to note when pursuing digital ˺ “Doubling down”: Keeping track of each of yourcoupon programs include: brand’s coupon offers is very important as savvy consumers will “double down” on deals by using digital˺ reach: Traditional coupons still reach more people, coupons with traditional coupons and match them with even among Internet users. Although newspaper FSIs in-store sales to potentially get products for free, if may drive volume, digital coupons minimize waste. not heavily discounted.˺ Audience: The traditional coupon clipping target17 Couponing in the Digital Age: A Playbook for CPG Brands Considerations for using digital coupons blog.360i.com / @360i
  • 18. spotlight on: Coupons.coman interview with Steven Boal, CEOWhat is the single greatest opportunity that digital What are the challenges to working with digital couponscoupons hold for brands? and how can marketers overcome them?Coupons are proven to engage consumers and move Marketers are challenged to keep pace with the rapidproduct off the shelf. The primary point of differentiation change and growth that is happening in digital. Newfor digital coupons is their effectiveness in enabling channels are emerging and the existing ones are growingbrand marketers to be more personalized and targeted in exponentially. We’re working with coupon issuers toreaching an emerging consumer segment along the entire address the challenge of “keeping up” by our gettingpath to purchase. involved in the marketer’s planning process and helping them plan their annual budgets based on what we see inWith traditional coupon mediums, communication is mass the transition to digital.and anonymous, whereas digital enables a more personal,targeted outreach – while still delivering scale and reach beyond naturally increasing digital habits, what are– at multiple touch points in the decision process. What’s some ways brands can help consumers become moremore, digital coupon users hail from a very attractive comfortable with digital coupons?demographic; they are younger, have higher householdincomes, have larger households, are better educated, Brands can increase consumer friendliness with digitalshop more frequently and spend more each month on coupons by integrating them across their multichannelgroceries than users of traditional newspaper coupons. marketing program. It’s not just about giving a coupon18 Couponing in the Digital Age: A Playbook for CPG Brands Spotlight On: Coupons.com blog.360i.com / @360i
  • 19. to a consumer: it’s about integrating the offer across purchase. Retailers specifically will increasingly integratethe entire digital promotions program. Digital coupons digital coupons into their communications in order tohave proven their effectiveness, and as more brands offer engage with people and promote coupon redemptions in-them across more touch points in the purchase process, store. Coupons.com already powers coupon galleries forconsumers will increasingly grow more comfortable with retailers spanning tens of thousands of locations to driveutilizing them. more shopping trips to their stores – and we anticipate this trend will continue to grow.What does the future of digital couponing look like?What are some predictions you have for the coming We also predict digital will change the game with regardyears? to shopper marketing, introducing an entirely new opportunity for consumers and brands to engage withConsumer interest in mobile coupon redemption in high- each other along the entire path to purchase. Engagementvolume transaction scenarios (such as grocery, drug and can begin with pre-planning at home and span all the waymass) will continue to increase. Coupons.com is currently to on-the-go and in-store interactions.working with point-of-sale providers and retailers on thearchitecture for redeeming manufacturer coupons with Coupons.com enables digital coupon programs –phones. including online printable, save to card and mobileRegarding mobile couponing, more immediate areas promotions – for the nations top brands and retailers.include 1) retailer adoption and 2) consumers’ path to Couponing in the Digital Age: A Playbook for CPG Brands Spotlight On: Coupons.com
  • 20. Digital Coupons: A strategy or a tactic?While digital coupons alone do not represent a strategy, many manufacturers andbrands are supplementing their traditional shopper marketing strategies and traditionalcouponing tactics by leveraging digitally distributed coupons.Driving trial/purchase/increase volume loyaltyA little incentive can go a long way to get Rewarding consumers for their loyalty is easyconsumers interested in trying or buying your via digital coupons because it is likely thatproduct. Digital coupons can also connect they have raised their hands to participateyour online campaign with an offline in communications such as emailelement, thus closing the loop on your newsletters, branded communities and/ormain objective of increasing sales. a simple visit your website.steal share the from competitors AwarenessFor new product launches, digital A well-targeted use of digital couponingsampling may facilitate traditional can be used to generate awareness andsampling efforts by circumventing the interest for a new or existing product.retail store. For refrigerated or heavyitems, some digital coupon vendors, such Prevent erosion from private label brandsas SmartSource, will hold your inventory As private label brands grow their productand handle the shipment and fulfillment of offerings at lower prices, brands face increasedsampling orders that are taken from consumers competition. Digital coupons can be used to helponline. The items that still require a traditional retailer keep more price conscious consumers away from privatewill combine digital sampling registration with direct labels, and loyal to your brand.mail coupons for a free sample.20 Couponing in the Digital Age: A Playbook for CPG Brands Digital Coupons: A strategy or a tactic? blog.360i.com / @360i
  • 21. Digital Coupon DeliveryA digital coupon can be distributed in a variety of ways and through a variety of channels.Let’s discuss how one can launch a digital coupon campaign.HoW To geT sTArTeD Most brands will work with a smartsource, owned by News Corporation, part ofdigital coupon supplier or aggregator to execute their News America (a traditional FSI company), is the nextdigital coupon programs. They are responsible for the largest supplier with 3 million monthly visitors andbackend and fulfillment of these coupon deals, and they 1,000+ partner sites, including some retailers. Twocan get you up and running within a few days. key differences between SmartSource and Coupons. com is that the latter provides brands withWhile there are many players in the space, category exclusivity on their digital couponthe industry is dominated by a few key campaigns, and an app download isplayers: not required.Coupons.com has the largest redPlum, owned by Valassis (aonline distribution network in traditional FSI company), hasthe industry, reaching 17 million about 2 million monthly visitorsunique households per month and 1,000 partner sites andacross 2,000+ different partner limited retailers. Like Coupons.sites. Partner sites range from com, RedPlum requires thatgrocery retail sites to lifestyle, users download a coupon printingfood and newspaper/magazine sites. plugin.They also have an opt-in email program, withmore than one million subscribers. Consumers must There are also a variety of smaller players in thedownload an application to print coupons. Coupons. market that continue to adopt and grow new platforms.com also offers coupons through the GroceryIQ app; see Some of these players include Shortcuts, Cellfire,more on p.26. Savewave and Catalina.21 Couponing in the Digital Age: A Playbook for CPG Brands Digital Coupon Delivery blog.360i.com / @360i
  • 22. Catalina, the company responsible for coupons printed Other places where digital coupons can be distributed onto grocery receipts, has recently launched an online include: coupon site called Coupon network. ˺ Coupon aggregators: Coupon Cabin, CouponBug, Each of these sites allow users to easily browse coupons CouponMom, TheDealery and countless others. that can be localized to their zip code and then printed out – the digital equivalent to a Sunday circular. ˺ brand websites: By partnering with vendors like Coupons.com, marketers can provide printable coupons Once established on one of these sites, brands can offer to visitors on their own sites (i.e. serving Kraft coupons their coupons beyond the supplier’s site and into a wide directly from KraftFoods.com). network of partner sites using what is called a digital fSi. A digital FSI is a way to spread your product’s ˺ retailer websites: Retailers like Kroger and Safeway coupon or promotion are making coupons available directly from their sites, across a large content and allowing consumers to connect them to their network, similar to loyalty cards or print them out. The benefit of going placing a media buy directly to the retailer site is that people can be sure within an ad network. these coupons will be accepted at the register. The digital coupon suppliers mentioned ˺ Digital display media: Online banners and display above have large, media with calls to action such as “click for a coupon,” established “coupon can alert consumers of digital coupon deals. content networks” and offer mass reach. A ˺ social: Brands can share coupons with people on a coupon network may variety of different social networks in a many differentAn example of how Coupons.com’s Concordance include recipe sites, ways.system works to integrate coupons into recipes. retailers, media sites and a variety of other related destinations. Some coupon ˺ email: Many sites will offer email newsletters that suppliers offer geo-targeting and pay-for-performance deliver coupons directly to consumers who have opted deals. One way to deliver these coupons is to integrate in. Brands can integrate these coupons into their email them into highly relevant content, for example within marketing campaigns. online recipe ingredient links. 22 Couponing in the Digital Age: A Playbook for CPG Brands Digital Coupon Delivery blog.360i.com / @360i
  • 23. Couponing innovations What has motivated you to "like" a company,Now that we know the basic delivery and brand, or association on Facebook?distribution methods for digital coupons,let’s explore some more innovative ways of 40% 39%distributing digital coupons. To receive discounts and To show my support for the promotions company to otherssocial Coupons 36% 34% To get a "freebie" (e.g., free To stay informed about theWhat makes a coupon a social coupon? Any coupon that samples, coupon) activities of a companycan be shared among people online may be considered asocial coupon, but there are a few subcategories of note. 33% 30% To get updates on future To get updates on upcomingFACebooK CouPons Facebook is an excellent products salesenvironment for brands to distribute coupons toconsumers, and many brands have used digital couponsas an incentive to get new fans or followers. In fact, a 29% 25% For fun or entertainment To get access to exclusiverecent report from ExactTarget and CoTweet revealed contentthat the top reason consumers will “Like” a company orbrand on Facebook is to receive discounts and coupons. 22% 21% Someone recommended it to me To learn more about theCoupons can be distributed on Facebook through a companyvariety of ways. Brands can serve up coupons directlyfrom fan pages to their consumers with the helps 13% 13%of applications from vendors like Wildfire, Kickapps, For education about company To interact (e.g., share ideas,Buddymedia or Coupons.com. One common use is to topics provide feeback)place a coupon offer on a non-fan Facebook landingpage in order to encourage fans to “Like” your page andredeem the coupon. Sources: ExactTarget & CoTweet23 Couponing in the Digital Age: A Playbook for CPG Brands Couponing Innovations blog.360i.com / @360i
  • 24. A retailer example of a Facebook coupon program is deal, and that deal was for $20 for $40 worth of couponsWalmart’s Crowdsaver app, which was live during the on various General Mills products. The deals, which2010 holiday season. Crowdsaver worked similar to took place only in San Francisco and Minneapolis, bothGroupon, putting the success of achieving a deal in the sold out within hours. For CPG brands, the margins willhands of the consumers. Walmart set a threshold of generally prohibit such steep discounting unless costs“Likes” that an offer needed to reach before the deal are covered by broader promotional budgets.became available to those who Liked it. CouPon CoMMuniTies AnD oTHer soCiAl CouPon Social Grocery is a new ecommerce oPPorTuniTies: application that lives within Facebook. It’s a social extension There are a variety of social coupon communities and of MyWebGrocer, a technology couponing tactics that live beyond Facebook: company that powers many grocery store chains’ websites. ˺ Crowdsourced coupon communities: There are Users of Social Grocery can add a host of sites that house communities of avid coupons from the Facebook app to couponers such as Mallicious, Dealigg and Discount their loyalty cards. Patrol. Users will post and share coupons they have found, and the best deals become crowdsourced togroup Couponing the top, similar to sites like Digg and Reddit.Another approach is “group couponing,” which was ˺ “Tell-a-Friend” coupons: Vendors like Social Twistpopularized by Groupon. Groupon began in 2008 as an have created socially incentivized “tell-a-friend”email-based service for local deals activated only when coupons, where the coupon value is worth more ifa certain threshold of users sign up. Today, Groupon they agree to share it with three or more friends.has more than 50 million subscribers worldwide. A These types of coupons are housed on a micrositelegion of similar providers has emerged, following in (or other destination) and have two values. UsersGroupon’s footsteps. These include sites like TheDealist can select the lesser value immediately, or select theand LivingSocial, as well as proprietary services higher value which they can redeem after they eitherfrom brands and retailers themselves. Because daily send it to three friends via email, or post it to theirdeal sites are mostly focused on getting consumers social communities, where it is assumed at leastintroduced to new activities and restaurants, CPG or three friends will see it.even national campaigns, have been minimal. GeneralMills was the first to use Groupon to offer a local CPG24 Couponing in the Digital Age: A Playbook for CPG Brands Couponing Innovations blog.360i.com / @360i
  • 25. Another derivation of “tell-a-friend” involves rewarding coupons alone cannot sustain an active community. It’susers with coupons for sharing video content, pioneered incumbent on a brand to maintain engagement and addby a vendor called Rewardshare. Similar to that are sites value for consumers beyond the occasional discount.like MyLikes.com, which compensate people in exhangefor sharing content, the majority of which is deal and gAMiFiCATion Gamification is the process of addingcoupon-related. game mechanics to experiences in order to engage and/or reward audiences. Adding points, badges,Progressive CouPons Progressive coupons are leaderboards and challenges are a great way todigital coupons that increase in value as more users motivate action from users. We are seeing this beingfulfill an action. used for marketing programs and it is often paired with rewards in the form of coupons. For example, Healthy Choice was looking to grow its Facebook fan Vendors like Crowdtwist and Bunchball incorporate base, increase engagement and game mechanics into websites, allowing users to reinforce the brand’s reputation for win points that can then be redeemed for coupons or providing great value. Knowing that discounts. Another platform is Swagbucks, a loyalty the Healthy Choice consumer is a program in which users can earn thousands of freebies user of social media and interested for doing online activities such as surveys, games and in coupons, the brand introduced a even simple web searches. Users also get rewarded for progressive coupon on its Facebook printing and using coupons on the site.Page (see image at left). The coupon began at a lowvalue ($0.75 off) and increased as people “Liked” the eMerging TrenDs Group couponing leader Grouponpage, ultimately reaching a “buy-one-get-one-free” deal. is continuing to innovate in the CPG space. In June 2011 it launched a test program that delivers dealsThe progressive coupon was supported through a to purchasers via grocery store loyalty cards. Big Yvariety of public relations tactics and in just two weeks, shoppers in Massachusetts and Connecticut couldthe community grew from 6,800 to nearly 60,000 fans. purchase a coupon for a $39.99 seafood grill at aHealthy Choice ultimately distributed more than 50,000 discounted price of $24 and have the deal automaticallybuy-one-get-one-free coupons. appended to their Big Y loyalty cards after the transaction was made online. The use of a groceryThough digital coupons have proven to grow fan store loyalty card as a payment vehicle creates manycommunities, it’s important to note that digital opportunities for CPG brands looking to simplify the25 Couponing in the Digital Age: A Playbook for CPG Brands Couponing Innovations blog.360i.com / @360i
  • 26. in-store redemption process. Furthermore, this model coupons via mobile barcodes that can be scanned at therepresents yet another iteration of paperless coupons, register.which will continue to be a trend in the digital couponspace. Other delivery methods for mobile coupons include digital coupon calls to action in mobile ads and mobileMobile coupons games. SMS programs are popular with feature phones and are a great way to engage with consumers who don’tMobile coupons can be distributed via text message, have smart phones.mobile ads, branded apps, custom apps, barcodes orother formats. Coupons delivered via mobile devices The number of smartphone applications that serveare gaining attention; however, their use is somewhat mobile coupons is growing rapidly. One example ishampered since retail locations often lack the GroceryIQ, an application from Coupons.com that helpsinfrastructure to implement them at the register. users shop by compiling grocery lists and providing coupons. Users can find coupons and add them to theirAt their best, mobile coupons offer the ultimate shopping list from the app. Other examples of couponconvenience, as they are easier to work with than applications include Coupon Sherpa and Yowza!! Mobiletraditional coupons, as they don’t involve searching, Coupons. Many manufacturers and brands are creatingsorting, clipping or remembering to take them to the their own branded apps like Kraft’s iFood assistant,store. They also eliminate the need to have another which includes coupons. There are also aggregator apps,loyalty card. For marketers, having access to mobile like CardStar, which allow shoppers to store, managecoupons may attract a younger, more affluent target and retrieve loyalty cards from their smartphones.that is not ingrained in traditional coupon clipping. Companies like Cellfire specialize in direct to cardAs of now, mobile couponing is still an early adopter coupon programs for mobile devices, where users canactivity, with less than 15% of mobile phone users load their loyalty cards with coupons that are served onhaving ever used a mobile coupon (Source: mBlox their phones.2010). Furthermore, only a few retailers have theinfrastructure to scan mobile coupon codes. A new company called SavingStar takes a different approach to the concept of paperless mobile couponing.As noted earlier, Target became the first major retailer Their app allows users to link coupons to their loyaltyto process and accept mobile coupons. To date it is the cards similar to the way Cellfire and GroceryIQ can, butfirst large scale retailer to allow consumers to redeem instead of receiving the discounts at the time of26 Couponing in the Digital Age: A Playbook for CPG Brands Couponing Innovations blog.360i.com / @360i
  • 27. purchase, the savings are transferred to one of four geo-TArgeTeD ADverTiseMenTs hold muchdifferent locations. This model is very similar to a points potential but they also come with some risk. There are aprogram, and at the time being, consumers can redeem variety of vendors, like PlacePunch and LocalResponse,the savings in three ways: that serve specials to consumers who check in with location-based apps. PlaceCast, a similar platform, 1. They can deposit directly into their bank account or sends ads and digital coupons to people who enter PayPal account. a previously determined “geofenced” area with their 2. They can transfer them to an Amazon gift card. mobile device. These types of focused advertisements 3. They can make a donation to the American Forests work best when users have opted in to communications. Organization. Blanket texts to unwitting consumers may create dissonance with your brand.SavingStar says that soon there will be many moreoptions for users to transfer their savings including Mobile location-based points applications also provide aairline miles, hotel points and an option to save at the way to connect with users who are at your retail locationtime of purchase. Another key difference between or location of interest. Shopkick and Checkpoints, forSavingStar and other save-to-card mobile applications example, are apps that allow users to collect points asis that they have national reach and strong relationships they visit several retail locations, and those points canwith a majority of retailers – plus a large amount of be used to redeem coupons and discounts. Shopkickdata that can be used by marketers to enhance their also incorporates scanning barcodes so that people cancouponing efforts. collect more information, points or deals.Mobile + location 1D AnD 2D/Qr CoDes provide opportunities for brands to interact with consumers on the path to purchase.Location-based marketing is one of the hottest topics in These codes serve as a great way to connect offline anddigital today. People are engaging on mobile phones and online messaging.sharing their locations, coupons and discounts to nearbystores is high on their list of priorities. In a recent Scanning has expanded beyond codes to a newly learnedsurvey by JiWire, more than half of respondents said consumer behavior of tagging music. The Shazamthey wanted to receive location-specific ads. They also application, one of the most downloaded apps to date,indicated that mobile coupons were a more appealing allows users to tag music operating somewhat like anincentive than check-ins (Source: JiWire Mobile Audience audio version of a QR code. Shazam has converted thisInsights Report, 2010). behavior for marketing purposes, asking people to tag commercials, and thus connecting offline and online27 Couponing in the Digital Age: A Playbook for CPG Brands Couponing Innovations blog.360i.com / @360i
  • 28. campaign. One great example is Old Navys campaign digital coupons could be more conditional (i.e. based onin which viewers could "Shazam" TV ads for coupons and geography, past and present behavior, etc.)other exclusive offers. Mobile + location + socialThere are also a variety of localized deal applicationsfor mobile devices, the majority of these which are lbsn Location-based social networks like Foursquare,focused on deals and not CPG coupons. Some examples Gowalla, Loopt and others offer deals based on where orinclude apps like Scoutmob, Coupious and Peekaboo that how often users visit (check in to) various locations.serve local deals and offers based on your current city,zip code or GPS location. Another example is SCVNGR FoursQuAre In November 2010, Foursquare piloted aLevel Up, which combines daily deals with location to program where Safeway visitors could link their loyaltyget consumers not only to go to a location once, but to card accounts to their Foursquare accounts. When storereturn more frequently and unlock greater rewards. visitors checked in to Safeway, they received couponsSparkFly, is a similar platform in the space. that printed right at the cashier. The second component of this program was tied to specific user behavior. ForMobile AugMenTeD reAliTY is an innovative example, consumers who checked in to the gym receivedtechnology that can be used to provide entertainment coupons for related products, such as Sobe Lifewater.or utility to its users. Valpak and Junaio paired up toprovide a local utility to its application, in which nearbydeals are delivered via a pop up in the video camera viewof the app.Mobile NFC (near field communication) is an emergingtechnology that has been generating buzz in themarketplace. NFC is a short range protocol built into The Foursquare-Sobe deal above rewarded people for checking into the gym.cell phones that enable you to “swipe” your phonenear an NFC tag (which could be in packaging, on asticker or at shelf) and pass data to the phone. Android FACebooK DeAls In 2011, Facebook announced its newsupports NFC in its most recent version of the operating Deals product. The Alpha program provided local dealssystem and there are rumors that Apple will add this to Facebook users in Atlanta, Austin, Dallas, San Diegofunctionality to future iPhones. Adoption of NFC would and San Francisco. There are five ways users are able topresent a big opportunity for the coupon space, as learn about deals in their area:28 Couponing in the Digital Age: A Playbook for CPG Brands Couponing Innovations blog.360i.com / @360i
  • 29. ˺ Updates through email and notifications There are two major factors hindering NFC usage: ˺ A new Deals tab located on the home page ˺ News Feed stories when friends take advantage of a 1. Relatively few payment terminals in stores include deal NFC scanning, though Verifone announced that all of ˺ Personal messages & wall posts its new payment systems will include NFC. Google is ˺ Sponsored Ad Units also speeding up the roll out with the debut its NFC payment product "Wallet" in May 2011.Facebook will also be publishing deals offered by thirdparties including Dealio, Gilt City, HomeRun, kgb deals, 2. Few mobile handsets include NFC functionality,OpenTable, Plum District, PopSugar City, ReachLocal, with Google’s own Nexus S among them. There areTippr, viagogo and zoos. The launch of Facebook Deals rumors – but only rumors – that Apple may includerepresents Facebook’s most notable investment in NFC in the next iPhone release, and such a jolt by asocial commerce since announcing it would require major handset maker will be needed to further NFCgame developers to utilize Facebook Credits for in-game adoption.purchases back in January 2011. Users can pay for dealsusing credit card, PayPal or Facebook credits. As an interim step, certain vendors are taking advantage of NFC’s low deployment costs and paper-thin chipsnear Field Communications to offer NFC-powered stickers that can be placed on consumers’ mobile handsets and scanned at speciallyAn emerging distribution opportunity involves near equipped readers at participating retailers. Dairy Queenfield communication (NFC), a wireless transmission ran such a pilot with Tetherball, 7-Eleven did with Firstmechanism based on radio frequency identification Data, and Bling Nation aims to tie in mobile rewards with(RFID) that allows devices to communicate with each social sharing via a Facebook app that would power NFCother when they’re in very close proximity. With NFC, a deals.scanner located at the point of sale, or embedded withinthe point of sale such as the Verifone credit card scanner NFC is in its infancy in the United States, but it remainscommonly used by retailers, can instantly connect with a something marketers should keep an eye on as Google,consumer’s mobile phone when placed near the terminal. Verifone, Nokia, AT&T, Verizon, T-Mobile, Visa, SamsungAt that point, people can instantly pay or redeem special and others have all demonstrated broader support for it,offers for doing so. Marketers and retailers can offer and certain brands will have the oppurtunity to becomespecial coupons and rewards for repeat purchases, thus early adopters to see if NFC can impact consumerencouraging loyalty rather than just one-off deals. acquisition and loyalty.29 Couponing in the Digital Age: A Playbook for CPG Brands Couponing Innovations blog.360i.com / @360i
  • 30. spotlight on: MyWebgroceran interview with Gregg Vincent, VP of Consumer ProductsWhat is the single greatest opportunity that digital – with a lot of groups benefiting and comfortable fromcoupons hold for brands? the status quo – manufacturers, clearing houses, retailers, coupon vendors, even consumers. The digitalFrugal shopping habits created during the recent coupon industry is still in its infancy and thereforerecession present a unique opportunity for remains fragmented. The difficulty with digital coupons ismanufacturers to target a larger and significantly that you are trying to create a solution for groups whosedifferent audience of consumers who are trying to needs are already being met. Marketers and servicestretch a limited grocery budget. Who doesn’t like to save providers need to come up with a winning strategy for$10/$20/$30 on their weekly grocery purchases? And digital coupons. There are also additional challenges:once this becomes a habit to those who have traditionallylooked down on coupons, manufacturers are guaranteed ˺ Retailers are affiliated with different coupon vendorsto benefit from increased coupon usage and therefore and each has different technologies and point-of-increased sales, brand awareness and loyalty. sale integration. This presents a bureaucratic and technical hurdle for marketers and manufacturers.What are the challenges to working with digital coupons ˺ Coupon-to-Card technology is limited to retailersand how can marketers overcome them? with frequent shopper numbers (FSNs).There is a multi-billion dollar industry in paper coupons ˺ Retailers want to control the experience and the30 Couponing in the Digital Age: A Playbook for CPG Brands Spotlight On: MyWebGrocer blog.360i.com / @360i
  • 31. data, yet they are faced with a dilemma. As they What does the future of digital couponing look like? try to increase distribution by allowing coupon What are some predictions you have for the coming vendors to increase their distribution to other years? affiliates, they create a customer service challenge in that they lose control of where, when and how The future of digital couponing will be marked by customers access digital coupons. relevant and highly targeted offers based on the things you like (purchase behavior) and powered by mobilebeyond naturally increasing digital habits, what are technology (geo-fencing). It is inevitable that traditionalsome ways brands can help consumers become more paper coupons will migrate to all digital. The speed withcomfortable with digital coupons? which that happens is up to the industry. Consumers will adopt a new process if it is convenient to them. NewOne way is to make digital coupons cool by harnessing technologies must be explored to broaden the marketemerging technologies. Highly involved audiences and drive innovation. It’s certainly an exciting time.make for better consumer adoption. Websites likeSocialGrocery are trying to help move digital coupons MyWebGrocer provides e-Commerce and emarktingto the mainstream by providing consumers with an solutions to the grocery and consumer packagedentertaining and informative experience. goods industries.31 Couponing in the Digital Age: A Playbook for CPG Brands Spotlight On: MyWebGrocer blog.360i.com / @360i
  • 32. brands can use digital FSIs to test coupon values. Due to the volume of FSIs, marketers can geo-target offers based on zip codes, states or DMAs, and gather insights into your consumers across the country. Digital coupon suppliers provide tracking for coupons that have been downloaded and then printed, but most cannot track redemptions unless they partner with offline coupon clearing houses that work directly withMeasuring success retailers and brands. Coupons.com, for example, can gather reads on how many prints have run within 24 hours of a campaign’s launch. Redemption informationThe success of your digital coupon program will will follow six to eight weeks later, as the retailerultimately depend on several factors: requires time to track and report on the offline component of the transaction. ˺ Brand favorability ˺ The curent household penetration of your over-reDeMPTion: The best way to prevent "doubling- product/category down" is to create greater alignment between online ˺ Brand development index and offline coupons and thereby prevent simultaneous offers. Communication with retailers is also important to ˺ Category development index prevent store sales running in tandem with your coupon ˺ The product re-purchase cycle offers. Currently Kroger and Safeway have taken steps to ˺ The actual value of the coupon prevent doubling down with a technology that prevents a printed coupon and a loyalty card coupon to be used in ˺ A purchase requirement the same checkout. ˺ When the coupon expires ˺ When the campaign launches A small subset of the population who will only buy products based on coupons and deals. These are peopleAll of the above could influence how well your coupon who don’t believe in paying retail price for anything. Ais received and how it spreads online. It is important well-timed and planned coupon approach for your brandto test the various factors above to understand which or product will minimize exposure to these consumers,combination works best for your product. For example, as they are not your most desired target market.32 Couponing in the Digital Age: A Playbook for CPG Brands Measuring Success blog.360i.com / @360i
  • 33. Conclusion D igital coupons have tremendous potential for both marketers and consumers. For consumers, digital coupons can become a seamless way to save money on the products they love. For marketers they can offer improved efficiency and targeting. Understanding the digital coupon landscape and how to use digital coupons can be a daunting task, as the landscape is rapidly evolving with the advent of new technologies and ways of creating, distributing, promoting and redeeming digital coupons. Beyond having a deep knowledge of the space, marketers should also strive to better understand consumer behavior, so that they can reach their audience in the ways that resonate most. About 360i 360i is an award-winning digital marketing agency that drives results for Fortune 500 marketers through insights, ideas and technologies. 360i helps its clients think differently about their online presence and evolve their strategies to take advantage of the new world of marketing communications – one where brands and consumers engage in interactive and multi-directional conversations. 360i was selected to of Ad Age’s Agency A-List and Fast Company’s roster of the “World’s Most Innovative Companies.” Current clients include Oreo, jcpenney, Coca-Cola, Bravo and Diageo among others. For more information, please visit blog.360i.com or follow us on Twitter @360i.33 Couponing in the Digital Age: A Playbook for CPG Brands Conclusion blog.360i.com / @360i
  • 34. © 2011 360i. All rights reserved.