#coupontrends
Devora Rogers• Senior Director, Retail Marketing  Insights• New to Inmar (and North  Carolina!)• Previously with IPG Media...
© 2013 Inmar, Inc. All Rights Reserved.                   3®                                              #coupontrends
Inmar’s Portfolio of Services                                                                         $20.4 billion       ...
Real-TimeRelationship  Platform®    © 2013 Inmar, Inc. All Rights Reserved.                                              #...
Don’t forget to join us in the LinkedIn                                                                       Promotions R...
®    © 2013 Inmar, Inc. All Rights Reserved.                                                              7               ...
Key Takeaways: Distribution (in billions)                                                 310                             ...
Key Takeaways: Redemption                                                      5                                          ...
200                                     2008        2009       2010                                                       ...
160                                     2008        2009        2010                                                      ...
Distribution vs. Redemption      180                                             Distribution                             ...
Magazine On Page                                                            1.2% Others                                   ...
Direct                                                                       Internet    Mail                             ...
Redemption down across the board                                                               NON-                       ...
The redemption roller coaster (in billions)                  4.4                                       3.9                ...
So what’s driving the                         decline?    © 2013 Inmar, Inc. All Rights Reserved.                   17®   ...
© 2013 Inmar, Inc. All Rights Reserved.                   18®                                              #coupontrends
Paid Sunday newspaper subscription impact                                                                          Coupon ...
January decline wipes out 2012 gains                 Consumer Confidence Index – January 2002 through January 2013120     ...
CPG prices on the rise       5                                              Percent Change in Unit Prices       4       3 ...
Consumers shifting spend or buying less                        Alcoholic Bevs                                             ...
Misery index improving…but not for younger                      and less educated                            Ages 20 to 24...
Shoppers relying                                                               on coupons to                              ...
The payroll tax is back…                                                Will consumers feel the bite?                     ...
© 2013 Inmar, Inc. All Rights Reserved.                   26®                                              #coupontrends
Offer Attractiveness®    © 2013 Inmar, Inc. All Rights Reserved.                                              #coupontrend...
Marketers tightening budgets after hot ’11                                                   2011                         ...
Marketing tactics impacting redemption                                                                           Average  ...
Redemption period by method type                                          2012 Coupon Fact Book                         Av...
New product trial dampening redemption                        190 727                                                93   ...
Shopper Behavior    © 2013 Inmar, Inc. All Rights Reserved.                   32®                                         ...
Changing shopper sentiment:                                       From effort to entitlement                              ...
Shopper attitudes to coupons    65%                                              Don’t think they                         ...
Why shoppers use coupons                 Compared to 2011, shoppers reported coupon usage in 2012:               INCREASED...
Shoppers want easy and personalized offers                                                      “I want coupons loaded to ...
Rise of the Mansumer                                                                #mansumer         Participation in hol...
Digital Fragmentation    © 2013 Inmar, Inc. All Rights Reserved.                   38®                                    ...
One word to describe the digital offer                                  landscape                                         ...
7 Ways to Receive a Digital Offer         1                                2      3           4              5         6  ...
How digitally discovered coupons are                                     redeemed              Redeemed like paper        ...
So many choices or too many choices?                                              Source: MediaPost & Company websites    ...
In 2013, the number of            retailer storefronts            which accept paperless            coupons is expected to...
Clips:                  250 Million                  Digital coupons                  redeemed:                  27.5 mill...
Average                  redemption                  rate:                  11%                  Average                  ...
Digital paperless coupon                                               distribution is on the rise                300     ...
Conclusion section slide®    © 2013 Inmar, Inc. All Rights Reserved.                                              #coupont...
Slight to modest                Conclusion section slide                    increase in redemption                    volu...
Thank you.                                              Questions?                                                       D...
Devora Rogers            devora.rogers@inmar.com            336.770.3495              @devoraerogers@InmarInc
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Inmar 2013 Coupon Trends

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Although predictions of an economic apocalypse may have reached a fever pitch in 2012, it did not ultimately prove to be a year of cataclysmic change for either consumers or civilization as a whole. Still, for promotions professionals and digital and retail marketers, there were several disruptive, significant events that measurably impacted the industry.

Last year brought with it sporadic economic recovery, increased smartphone and tablet adoption and a continued consolidation across (and in some cases, contraction of) traditional media – all while shoppers grew more active in their pre-purchase decision-making behaviors. So, how, in the face of all this – along with the steady acceleration of ecommerce, shrinking marketing budgets and general business volatility – did coupons perform?

In this webinar from Inmar Analytics, shopper engagement expert Devora Rogers will present statistics and trends in coupon distribution and redemption from 2012. She will also offer insights as to the causes, effects and future implications of last year’s coupon activity and what it means for brands, retailers and shoppers. Rogers, formerly Group Director for IPG’s Shopper Sciences, will share data from Inmar’s annual coupon report and 2013 shopper insights study while providing analysis and assessment to inform promotional planning for 2013.

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Inmar 2013 Coupon Trends

  1. 1. #coupontrends
  2. 2. Devora Rogers• Senior Director, Retail Marketing Insights• New to Inmar (and North Carolina!)• Previously with IPG Media Lab and Shopper Sciences• devora.rogers@inmar.com• 336.770.3495• Twitter: @devoraerogers Don’t forget to join us in the LinkedIn Promotions Room! © 2013 Inmar, Inc. All Rights Reserved. 2® #coupontrends
  3. 3. © 2013 Inmar, Inc. All Rights Reserved. 3® #coupontrends
  4. 4. Inmar’s Portfolio of Services $20.4 billion in transaction value 700+ retailers 1000+ manufacturers® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 4
  5. 5. Real-TimeRelationship Platform® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 5
  6. 6. Don’t forget to join us in the LinkedIn Promotions Room!® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 6
  7. 7. ® © 2013 Inmar, Inc. All Rights Reserved. 7 #coupontrends
  8. 8. Key Takeaways: Distribution (in billions) 310 313 305 315 ‘12 ‘11 300 320 DOWN 1.2% © 2013 Inmar, Inc. All Rights Reserved. 8® #coupontrends Source: 2012 Inmar Coupon Report
  9. 9. Key Takeaways: Redemption 5 4 2011: 3.5B 3 2012: 3.0B 2 1 DOWN 14.3%® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 9 Source: 2012 Inmar Coupon Report
  10. 10. 200 2008 2009 2010 2011 2012 180Distribution by Month 160 140 120 100 80 60 40 20 0 © 2013 Inmar, Inc. All Rights Reserved. ® #coupontrends 1010 Source: 2012 Inmar Coupon Report
  11. 11. 160 2008 2009 2010 2011 2012Redemption by Month 140 120 100 80 60 40 20 0 © 2013 Inmar, Inc. All Rights Reserved. 11 ® #coupontrends Source: 2012 Inmar Coupon Report
  12. 12. Distribution vs. Redemption 180 Distribution Redemption 160 140 120 100 80 60 40 20 0 ® © 2013 Inmar, Inc. All Rights Reserved. 12 #coupontrends Source: 2012 Inmar Coupon Report
  13. 13. Magazine On Page 1.2% Others Internet 7.0% 0.4% In-ad 2.6%2012 Distribution Free-standing Insert 88.8% © 2013 Inmar, Inc. All Rights Reserved. 13 ® #coupontrends
  14. 14. Direct Internet Mail 4.6% 3.7% Other Shelf Pad 6.1%2012 Redemption 15.6% Electronic Checkout 8.0% Instant Redeemable 18.1% Free-standing Insert 43.9% © 2013 Inmar, Inc. All Rights Reserved. 14 ® #coupontrends
  15. 15. Redemption down across the board NON- FOOD FOOD 2.0 billion 1.0 billion 65.8% of Total 34.2% of Total® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 15 Source: 2012 Inmar Coupon Report
  16. 16. The redemption roller coaster (in billions) 4.4 3.9 3.7 3.5 3.5 3.3 3.3 3.2 3.0 3.0 2.6 2.6 2.6® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 16 Source: 2000-2012 Inmar Coupon Reports
  17. 17. So what’s driving the decline? © 2013 Inmar, Inc. All Rights Reserved. 17® #coupontrends
  18. 18. © 2013 Inmar, Inc. All Rights Reserved. 18® #coupontrends
  19. 19. Paid Sunday newspaper subscription impact Coupon Redemptions vs. Paid Circ 9.0 70.0 8.0 60.0 7.0 50.0 6.0 Billions of Redemptions Millions in Circulation 40.0 5.0 4.0 30.0 3.0 20.0 2.0 10.0 1.0 0.0 0.0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Tot. Coupon Red. Paid Sunday News Circ® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 19 Source: Editor and Publisher International Yearbook
  20. 20. January decline wipes out 2012 gains Consumer Confidence Index – January 2002 through January 2013120 Previous110 Restated100 90 90 80 70 60 58 50 40 30 25 20 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 © 2013 Inmar, Inc. All Rights Reserved. 20® #coupontrends The Conference Board - Nine census regions, 5,000 US households; 1985 = 100; conducted by Nielsen
  21. 21. CPG prices on the rise 5 Percent Change in Unit Prices 4 3 2 1 0 -1 -2 17 periods of price gains; 4.9% increase in latest period® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 21 Source: Nielsen Scantrack, (U.S. FDM w/ Walmart) 4 week increments (vs. prior year); UPC-coded
  22. 22. Consumers shifting spend or buying less Alcoholic Bevs 6 Fresh Produce 4 HBA 1 Deli 1 Packaged Meat 0 Non-Food Grocery -1 Dairy -1 Fresh Meat -1 Unit Volume Dry Grocery General Merch -2 -2 % change Frozen Foods -2 vs. year ago Total All Depts -1® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 22 Source: Nielsen Scantrack, Total U.S. – All Outlets Combined, 52 weeks ending 12/22/2012 (vs. prior year), UPC-coded
  23. 23. Misery index improving…but not for younger and less educated Ages 20 to 24 years Age 55 and over18 1815 1512 12 9 9 6 6 3 3 0 0 Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. 2011 2012 2011 2012 High School graduates, no college Bachelors degree and higher18 1815 1512 12 9 9 6 6 3 3 0 0 Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. 2011 2012 2011 2012 misery index = unemployment rate + inflation ® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 23 Source: Nielsen, 2012 U.S. Retail Trends U.S. Bureau of Labor Statistics; CPI non-seasonally adjusted, unempl. rate seasonally adjusted
  24. 24. Shoppers relying on coupons to help in down economy 54% of shoppers say they increased their coupon usage because their financial situation changed © 2013 Inmar, Inc. All Rights Reserved. 24® #coupontrends Source: 2013 Inmar Shopper Study
  25. 25. The payroll tax is back… Will consumers feel the bite? Average $400-$2,200 a year® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 25 Source: Congressional Budget Office
  26. 26. © 2013 Inmar, Inc. All Rights Reserved. 26® #coupontrends
  27. 27. Offer Attractiveness® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 27
  28. 28. Marketers tightening budgets after hot ’11 2011 Q1 -3% Q2 +4% Q3 +16% Q4 +5%® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 28 Source: 2011 Inmar Coupon Trends
  29. 29. Marketing tactics impacting redemption Average Average Average Purchase Redemption Face Value Requirement Distributed Distributed Period Distributed Distributed: Distributed: Distributed: $1.56/coupon 1.57 units/coupon 2.2 months (-1.9%) (+4%) (-8.3%) “I usually won’t use a coupon if I have to purchase multiple items” 34.36% “There are too many rules/exclusions for using coupons” 37.64%® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 29 Source: 2012 Inmar Coupon Trends
  30. 30. Redemption period by method type 2012 Coupon Fact Book Average Redemption Period Distributed by Method (in months) Method 2008 2009 2010 2011 2012Beginnings Magazine n/a 4.6 4.5 3.0 6.0Bounceback 14.0 12.1 17.0 10.3 13.9Color Run-of-press 2.9 2.9 1.7 7.3 2.5Consumer Relations 13.8 10.9 11.1 3.3 5.0Direct Home Delivery 6.0 3.5 3.5 4.4 4.7Direct Mail 3.9 4.2 3.0 3.8 2.6Direct Mail Co-op 3.9 3.3 3.0 2.8 2.7Direct Mail with Sample 8.5 7.0 7.1 6.6 7.9Electronic Checkout 4.5 4.6 4.5 4.6 4.0Electronic Kiosk 3.5 3.5 4.5 3.8 2.1Electronic On-cart 5.5 5.0 n/a n/a 1.0Electronic Shelf 2.8 3.3 3.3 3.5 3.1Free-standing Insert 2.6 2.3 2.2 2.1 1.9Handout 6.6 6.8 6.4 6.3 6.2Handout Co-op 4.4 3.8 3.8 5.2 2.4Handout In-store with Sample 10.0 12.9 12.4 13.6 8.9Handout Off-store Location 5.2 5.3 9.8 9.0 9.7Handout Off-store Location Co-op 14.1 8.7 10.5 4.3 3.1Handout Off-store Location with Sample 6.2 10.8 15.8 10.3 13.2Hospital Sample 15.8 16.7 17.2 16.2 16.4In-adIn-packIn-pack Cross Ruff 0.9 15.7 15.4 1.4 15.6 16.9 0.9 15.4 18.3 1.0 16.2 14.1 1.1 14.4 12.7 My couponsInstant RedeemableInstant Redeemable Cross RuffInternet 7.6 6.7 6.5 8.7 8.7 7.2 9.7 7.4 7.1 9.0 9.8 7.9 8.3 5.1 6.1 often expireMagazine On-pageMagazine Pop-upMilitary Handout 3.6 6.2 4.7 4.4 4.7 5.2 3.9 8.2 4.6 4.7 5.1 4.7 4.7 3.8 4.2 before I haveMilitary MagazineMilitary Shelf PadNewspaper Co-op 5.5 8.1 5.0 3.2 8.3 2.4 4.3 7.7 3.7 3.4 8.0 1.5 3.9 7.7 n/a the chance to use them.Newspaper Run-of-press 2.9 1.9 2.8 2.5 3.0On-pack 10.1 13.2 10.0 9.7 8.4On-pack Cross Ruff 8.2 8.4 12.9 8.1 6.8Prenatal 24.0 n/a 20.9 n/a n/aShelf Box 5.0 5.9 6.9 6.5 6.7Shelf Pad 5.1 4.8 5.1 4.7 4.8Sunday Comics n/a n/a n/a 3.0 n/aSunday Supplement 3.2 2.0 1.4 2.0 3.7 ® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 30 Source: 2013 Inmar Shopper Study
  31. 31. New product trial dampening redemption 190 727 93 Manufacturers New Product Categories Promoting New Event Dates in Featuring New Products via FSI 2012 Product Events in 2012 in 2012 (+9.9% over 2011) (+23.2% over 2011) (+13.4% over 2011) “I can’t find coupons for the products I want to buy” 52.83%® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 31 Source: Kantar Media (Marx)
  32. 32. Shopper Behavior © 2013 Inmar, Inc. All Rights Reserved. 32® #coupontrends
  33. 33. Changing shopper sentiment: From effort to entitlement “If I put in the effort, I can get deals on the brands I buy.” “If I shop a store a lot, I shouldn’t have to work for deals I deserve.” © 2013 Inmar, Inc. All Rights Reserved. 33® #coupontrends
  34. 34. Shopper attitudes to coupons 65% Don’t think they should have to 80% work for deals. Using coupons makes me feel smarter. I would use 66% coupons more if they were more I am not sure where 36% available online. to get coupons for the products that I want to buy. 37% I wish all coupons were digital. © 2013 Inmar, Inc. All Rights Reserved. 34® #coupontrends Source: 2013 Inmar Shopper Study
  35. 35. Why shoppers use coupons Compared to 2011, shoppers reported coupon usage in 2012: INCREASED STAYED THE SAME DECREASED 54% 41% 4% © 2013 Inmar, Inc. All Rights Reserved. 35® #coupontrends Source: 2013 Inmar Shopper Study
  36. 36. Shoppers want easy and personalized offers “I want coupons loaded to my 65% store loyalty card for products that I normally buy.” 65% “I want stores to email me with coupons for products that I normally buy.” “I want all available store 63% coupons to be loaded onto my store loyalty card.” © 2013 Inmar, Inc. All Rights Reserved. 36® #coupontrends Source: 2013 Inmar Shopper Study
  37. 37. Rise of the Mansumer #mansumer Participation in holiday meal planning 6% Not involved 35% Share 59% All Decisions 86% 44% 40% 18% Not involved Share 44% All Decisions 38%® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 37 Sources: 2012 Inmar Holiday Study, KSDK, Men’s Health, Spike Network’s ‘State of Men’ study
  38. 38. Digital Fragmentation © 2013 Inmar, Inc. All Rights Reserved. 38® #coupontrends
  39. 39. One word to describe the digital offer landscape Artist credit: Morten Fangok Olesen® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 39
  40. 40. 7 Ways to Receive a Digital Offer 1 2 3 4 5 6 7 TextMessage Brand, Retailer Email or Publisher Website QR Code In Store Social Mobile App® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 40
  41. 41. How digitally discovered coupons are redeemed Redeemed like paper Paperlessly redeemed Retailer Loyalty Program (i.e. eWallet/ Direct-to-Card / Save-to-Card) Text Email Website Unique Identifier (10-digit mobile) Loyalty Aggregator (AOL shortcuts, SavingStar, etc.) “Closed” Retailer Program (Target, Social QR (et al) Apps Walgreens, Starbucks, etc.) Manifests as a paper coupon Never manifests as paper Redeems as a paper coupon Redemption recorded separately Settles as a paper coupon® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 41
  42. 42. So many choices or too many choices? Source: MediaPost & Company websites © 2013 Inmar, Inc. All Rights Reserved.® #coupontrends
  43. 43. In 2013, the number of retailer storefronts which accept paperless coupons is expected to grow 50% or more depending on channel. © 2013 Inmar, Inc. All Rights Reserved. 43® #coupontrends
  44. 44. Clips: 250 Million Digital coupons redeemed: 27.5 million © 2013 Inmar, Inc. All Rights Reserved. 44® #coupontrends Source: 2012 Inmar Coupon Report
  45. 45. Average redemption rate: 11% Average face value: $0.91 © 2013 Inmar, Inc. All Rights Reserved. 45® #coupontrends Source: 2012 Inmar Coupon Report
  46. 46. Digital paperless coupon distribution is on the rise 300 250.0 250 FSI 2011-15 CAGR 200 - 3% Billions 150 Digital Paperless FSI 99.0 100 2011-15 CAGR Print at home 898% Digital Paperless PAH 50 2011-15 CAGR 17% 3.0 0 2008 2009 2010 2011 2012 2015® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 46 Source: 2012 Inmar Coupon Report
  47. 47. Conclusion section slide® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 47
  48. 48. Slight to modest Conclusion section slide increase in redemption volume over 2012® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 48
  49. 49. Thank you. Questions? Don’t forget to join us in the LinkedIn Promotions Room!® © 2013 Inmar, Inc. All Rights Reserved. #coupontrends 49
  50. 50. Devora Rogers devora.rogers@inmar.com 336.770.3495 @devoraerogers@InmarInc
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