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Let's make a deal

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parago’s third annual shopper study, “Let’s Make a Deal,” reveals that deal seeking has grown significantly in the past year. It is now a behavior consistently seen in shoppers from all demographics. …

parago’s third annual shopper study, “Let’s Make a Deal,” reveals that deal seeking has grown significantly in the past year. It is now a behavior consistently seen in shoppers from all demographics. Deal seeking is no longer just trendy or born completely out of necessity. Shoppers continue to seek out the very best prices and are willing to go out of their way to save even a little bit.

parago creates engaging solutions that inspire actions & impact results
As the most comprehensive single-source provider of incentives and engagement,
we deliver $2 billion in rewards to 50 million people worldwide each year using our
advanced technology. Our relentless focus on innovation drives better results,
making us the smart choice.
• consumer rebates & promotions
• employee rewards & recognition
• sales & channel management
• energy efficiency incentives

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  • 1. 2013 shopper behavior study deal a study by let’s make a
  • 2. contents overview methodology key findings shopping power purchase influencers preference: rebate over instant discount attitude toward rebates driving for deals shopping practices access to deals: social, mobile and online appendix: shopper research by income 3 4 5 6 8 10 12 14 16 17 18 let’s make a deal: 2013 shopper behavior study by parago 2
  • 3. for what it’s worth Shopper price sensitivity is up significantly over last year. Consumers at all income levels are feeling the pinch of the lagging economy. Their long and worsening struggle has manifested itself in new deal-seeking shopping behaviors that are laser-focused on paying only what it’s worth and not a penny more. Across the board, shoppers now seek out the very best prices and are willing to go out of their way to save even a little bit. They research circulars, fliers, and the internet before they head out to shop — if they don’t buy online. They drive out of their way to save and, in-store, they check prices again on their smartphones. Because they are focused on the very best price, the majority are finding that rebates, above all other price promotions, deliver the greatest value and lift to their personal spend budget. They want rebates in all shopping categories, from office and building supplies to clothing and consumer packaged goods. On the brighter side of heightened price sensitivity, they are still shopping regularly and feel emotionally rewarded when they find significant savings. This sense of reward is connecting them more closely to the shopping experience and the items they purchase than in years past. We are happy to share our findings with you, including a comprehensive break out by income in many of the most intriguing categories. We invite you to reach out with questions and keep the discussion going. Good shopping! Rodney Mason, CMO rodney.mason@parago.com 972.538.7336 http://twitter.com/rodmoose frugality rules! let’s make a deal: 2013 shopper behavior study by parago 3
  • 4. methodology The third annual Shopper Behavior Study was conducted via a national online survey during March 2013 with 1,078 respondents representative of the US (in terms of education, income and gender). They responded to a 50-question survey exploring their deal seeking behavior: how, why and where? We explored macro-economic sentiments, influence of technology, and consumer preference. gender employment living situation 51% employed full-time 16% retired 11% employed part-time 8% homemaker 48% men 52% women 5% unemployed/seeking employment 69% own their home 31% rent 5% other annual household income 38% $49,999 37% $50–99,999 18% $100–199,999 3% $200,000 4% no report 4% student generational split marital status 58% married 20% single 12% divorced/separated/widowed 10% in a relationship or living w/ partner age 17% 18–29 37% 30–48 37% 49–67 9% 67 let’s make a deal: 2013 shopper behavior study by parago 4
  • 5. key findings price sensitivity is up 75% across all income levels 3x price is 46% more influential on purchase decision than any other criteria. of people use their smartphones to compare prices while shopping. 58% 80% will participate in a social media contest to receive exclusive rebates. 75% of people would scan a barcode for an exclusive rebate. look for deals before they go shopping. 81% of people will drive 5–10 minutes out of their way for a $10 rebate. 83% want to find rebates both when shopping online and in-store. let’s make a deal: 2013 shopper behavior study by parago 5
  • 6. shopping power “How do you rate your price sensitivity?” more sensitive to price 201375% 201270% unchanged 201322% 201226% less sensitive to price 20134% 20124% numbers may not sum to 100 due to rounding 75% of shoppers reported being more sensitive to price. let’s make a deal: 2013 shopper behavior study by parago 6
  • 7. shopping power “How do you feel about your purchasing power over the last 12 months?” decreased 201342% 201253% the same 201328% 201229% increased 201325% Purchasing power continues to see huge declines, leading to greater price sensitivity. 201210% unsure 20135% 20128% 42% feel their purchasing power decreased this past year. let’s make a deal: 2013 shopper behavior study by parago 7
  • 8. purchase influencers quality 17% store 7% price is king price 56% Price is the primary influencer on purchase decision. loyalty programs 3% brand 17% let’s make a deal: 2013 shopper behavior study by parago 8
  • 9. purchase influencers annual household income annual household income annual household income annual household income $49,999 $50,000– $99,999 $100,000– $199,999 $200,000 price 70% brand 9% store 6% quality 11% loyalty 3% rewards price 53% brand 14% store 8% quality 20% loyalty 4% rewards price 39% brand 31% store 4% quality 22% loyalty 3% rewards price 17% brand 38% store 10% quality 28% loyalty 7% rewards Deal seekers are the majority in every income level under $200,000. numbers may not sum to 100 due to rounding let’s make a deal: 2013 shopper behavior study by parago 9
  • 10. Consumers want the best deal. And they are willing to take an extra step to get it. Marketers can take advantage of rebate redemption to drive higher-value promotions, capture data, and gain customer interaction. let’s make a deal: 2013 shopper behavior study by parago 10
  • 11. preference: rebate over instant discount For the same cost as less attractive coupons or instant discounts, rebates offer the deeper price discounts consumers prefer. “Which would you choose?” $75 instant discount 35% $35 instant discount 29% $18 instant discount 26% $12 instant discount 29% $5 instant discount 33% $2 instant discount 40% 65% 71% 74% 71% 67% 60% $100 rebate $50 rebate $30 rebate $20 rebate $10 rebate $5 rebate 71% of shoppers will opt-in during the rebate process for product marketing. let’s make a deal: 2013 shopper behavior study by parago 11
  • 12. Consumers want rebates. Marketers can create compelling rebates that get sales lift, data and high-value interaction. let’s make a deal: 2013 shopper behavior study by parago 12
  • 13. attitude toward rebates “When shopping online, a discount via rebate is attractive” “When shopping in-store, I like to find rebates” “The ability to submit a rebate via smartphone is attractive” “I want to scan a barcode in-store for rebates on my phone” “Rebates provide a larger cost savings than other promotions” “Rebates are easy to redeem nowadays” 83% 83% 80% 75% 73% 72% 80% of shoppers will opt-in during the rebate process for more rebate offers. let’s make a deal: 2013 shopper behavior study by parago 13
  • 14. driving for deals More than 3 out of 4 shoppers would drive 5-10 minutes out of their way for a $10 rebate on a $50 product. annual household income $49,999 $50,000–$99,999 77% 83% $100,000–$199,999 86% $200,000 86% let’s make a deal: 2013 shopper behavior study by parago 14
  • 15. driving for deals How far will a consumer go for savings? 93% would drive 5-10 minutes out of their way for $20. 86% would drive 5-10 minutes out of their way for $15. 81% would drive 5-10 minutes out of their way for $10. Most consumers will travel 10–20 minutes (round trip) to get rebates on a $50 product. let’s make a deal: 2013 shopper behavior study by parago 15
  • 16. shopping practices Deal-seeking behavior is up across the board. People want the best deal, not necessarily the cheapest option. “I shop…” 2013 survey results 2012 survey results Checking prices on smartphones is up over . 46% 11% 36% where I can use my smartphone to check prices 21% for brand over price 55% 40% where I can gain value from loyalty and rewards programs “Before I go shopping, I…” 400% 80% 69% look for deals, rebates and best advertised prices 71% 61% review circulars and print advertisments 59% 38% check online for the best deals 33% 16% ask my personal network for deals let’s make a deal: 2013 shopper behavior study by parago 16
  • 17. access to deals: social, mobile online “Where do you want to receive exclusive rebate deals?” Facebook rebate website Google Twitter LinkedIn company blog Pinterest retailer mobile app 53% 44% 39% 25% 19% 17% 17% 16% 57% of shoppers will participate in a social media contest to receive an exclusive rebate. multiple answers allowed let’s make a deal: 2013 shopper behavior study by parago 17
  • 18. appendix shopper research For your use, more detailed information by annual household income is included on pages 19–21. Additional data about consumer preferences for rebates by product category can be found on pages 22 and 23. let’s make a deal: 2013 shopper behavior study by parago 18
  • 19. behavior by income $49,999 Researches for deals and best prices before shopping Looks for deals in circulars and print ads Search for deals online before going in-store I use my smartphone to check prices while in store/shopping I shop where I can gain loyalty and rewards Almost always Sometimes Total Almost always Sometimes Total Almost always Sometimes Total Almost always Sometimes Total Almost always Sometimes Total $50,000– $99,999 $100,000– $199,999 $200,000 78% 19% 97% 66% 26% 92% 48% 38% 86% 13% 17% 30% 42% 12% 54% 81% 18% 99% 74% 20% 94% 67% 29% 96% 31% 20% 51% 59% 7% 66% 90% 9% 99% 83% 15% 98% 75% 21% 96% 53% 28% 81% 76% 2% 78% 69% 28% 97% 56% 34% 90% 69% 21% 90% 45% 31% 76% 66% 7% 73% let’s make a deal: 2013 shopper behavior study by parago 19
  • 20. rebate preferences by income $49,999 $50,000– $99,999 $100,000– $199,999 $200,000 Rebates are great savings opportunities 85% 92% 93% 90% Rebates provide a larger cost savings than other promotions 69% 75% 82% 75% Rebates make me feel like I caught an exclusive sale 64% 73% 80% 83% Rebates are easy to redeem 66% 73% 84% 75% When researching a product online, a rebate is attractive to me 63% 82% 90% 86% The ability to submit a rebate on my smartphone is attractive to me 39% 57% 76% 89% let’s make a deal: 2013 shopper behavior study by parago 20
  • 21. rebate preferences by income $49,999 $50,000– $99,999 $100,000– $199,999 $200,000 Participate in social media contest to receive exclusive rebate offer 50% 60% 74% 62% Opt-in during cash back process to receive future rebate offers 78% 81% 89% 86% Opt-in during rebate cash back process for future relevant product marketing messages 66% 72% 85% 83% Interested in seeking out products that come with rebates offering deep discounts 85% 90% 93% 82% I will buy a product with a high dollar rebate 74% 85% 90% 79% I search out products with rebates 48% 60% 74% 56% let’s make a deal: 2013 shopper behavior study by parago 21
  • 22. category interest in rebates cash back “Which categories are you interested in rebates or cash back offers?” building tools and supplies clothing consumer packaged goods electronics entertainment 37% 58% 52% 80% 48% $50,000– $99,999 43% 62% 58% 77% 58% $100,000– $199,999 46% 57% 61% 71% 63% 41% 28% 59% 76% 59% annual household income $49,999 $200,000 let’s make a deal: 2013 shopper behavior study by parago 22
  • 23. category interest in rebates cash back “Which categories are you interested in rebates or cash back offers?” furniture/ housewares games gifts office supplies travel technology 48% 32% 36% 43% 32% 58% $50,000– $99,999 58% 44% 48% 47% 44% 64% $100,000– $199,999 63% 46% 43% 61% 63% 77% 59% 38% 31% 55% 76% 76% annual household income $49,999 $200,000 let’s make a deal: 2013 shopper behavior study by parago 23
  • 24. parago creates engaging solutions that inspire actions impact results As the most comprehensive single-source provider for incentives and engagement, we deliver $2 billion in rewards to 50 million people worldwide each year with advanced technology. Our relentless focus on innovation drives better results, making us the smart choice. consumer rebates promotions | employee rewards recognition | sales channel management Rodney Mason Chief Marketing Officer 972.538.7336 rodney.mason@parago.com www.parago.com © 2013 parago, inc. All rights reserved.

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