Good Stuff Happens in 1:1 Meetings: Why you need them and how to do them well
Benefits of coupons for consumers, retailers and manufacturers
1. Savvy Marketing for Savvy Shoppers
Why using coupons matters - for consumers, retailers & manufacturers
1Mark Arnold, M-Cubed Consultancy, 2013. markarnold07@gmail.com
2. 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. markarnold07@gmail.com
3. 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. markarnold07@gmail.com
4. 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. markarnold07@gmail.com
5. 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. markarnold07@gmail.com
6. Multi-channel delivery options allow integrated communications
Mark Arnold 2013. markarnold07@gmail.com 6
Newspapers
Direct mail
Point of sale
Email
Mobile
Loyalty card
On-pack
ATM
7. 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. markarnold07@gmail.com 7
