Digital Vouchers 2012
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Following the economic downturn shoppers continue to try and find ways to save money where they can. This is re-fuelling the popularity of vouchers and coupons that now come in many forms. This report ...

Following the economic downturn shoppers continue to try and find ways to save money where they can. This is re-fuelling the popularity of vouchers and coupons that now come in many forms. This report provides an understanding of what digital coupons and vouchers are, how they can be distributed and how shoppers use them. We identify how often shoppers redeem coupons and vouchers, whether they actively look for them and what kind of coupons or vouchers shoppers look for online.

We explain how technology is affecting coupons and vouchers and how shoppers use it for finding coupons and vouchers and how technology is used for redemption. We also identify current smartphone penetration among primary food and grocery shoppers. We cover areas such as push and pull with smartphone vouchers, whether and how shoppers want offers sent to their smartphones. We also explore shopper perceptions on giving out personal information in order to get relevant offers and who shoppers would trust with their information. The report gives a detailed overview of smartphone coupons and vouchers, what possibilities they offer and whether shoppers want smartphone vouchers or offers by email.

This report will:

-Define digital coupons and vouchers are
-Provide the latest view on how digital coupons and vouchers can be distributed and also how they are used in different countries.
-Identify how shoppers use vouchers and coupons and how they find them.
-Provide an overview of how new technology is affecting coupons and vouchers and how shoppers use it for finding coupons and vouchers and how it’s used for redemption.
-Identify the smartphone penetration of UK shoppers and what activities smartphones are used for.
-Highlight issues and concerns with digital coupons and vouchers and redeeming them.
-Consider the concept of push and pull and which method do shoppers prefer in relation to receiving offers to a smartphone.
-Give a detailed overview of smartphone coupons and vouchers, what possibilities they offer and whether shoppers want smartphone vouchers or offers by email.
-Explain who shoppers would trust with enough personal information in order to receive offers that are relevant to them.

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Digital Vouchers 2012 Presentation Transcript

  • 1. Evolution Insights: Shopper Insight Series Digital Vouchers and Coupons in the UK Food & Grocery Market 2012 Evolution Insights Ltd Prospect House 32 Sovereign Street Leeds LS1 4BJ Tel: 0113 389 1038 http://www.evolution-insights.com www.evolution-insights.com 1
  • 2. About Evolution InsightsEvolution is a leading research consultancy specialising in shopper motivation and behaviour. We deliver off-the-shelf, tailored and bespoke research formanufacturers, retailers and agencies. Our research and analysis helps clients • Evolution offer a range of products & services for develop targeted shopper marketing clients in the field of shopper research:- initiatives designed to influence • Off-the-shelf research shoppers at the point of purchase. – Evolution’s off the shelf research publications deliver affordable insight into shopper motivation and behaviours in UK food, drink and grocery • Insight Plus – Insight Plus offers your business the opportunity to engage in any of our regular shopper research projects in advance of We use a range of research publication, tailoring the scope to suit your needs methodologies to discover genuine insights. Our research incorporates a • Bespoke Consulting broad spectrum of robust qualitative and quantitative research techniques. – As publishers of research, we are able to draw upon a wealth of existing proprietary data for consulting projects – helping to better inform and shape any further As a leading publisher of shopper research requirements. research, we are ideally placed to offer your business actionable shopper insight. Further information is available at our website http://www.evolution-insights.com www.evolution-insights.com 2
  • 3. ContentsKey findings and executive summary 5 Location-Based Offers 33Key Findings and Executive Summary – What This Report Will Do for You 6 Location-Based Coupons and Vouchers 34Key Findings and Executive Summary – Use of Digital Vouchers 7 Digital Coupons: Methods of Delivery - Summary 35Key Findings and Executive Summary – Technology and Digital Vouchers 8 Smartphone Coupons and Vouchers – Benefits, Disadvantages and 36and Coupons ApplicationsCoupons and Vouchers – Definition and Drivers of Popularity 9 Smartphone Coupons and Vouchers – Benefits, Disadvantages and Applications: 37 IntroductionCoupons and Vouchers – Definition and Drivers of Popularity: 10 Digital Redemption of Smartphone Vouchers 38IntroductionDefining Coupons 11 Smartphone Vouchers and Coupons - Benefits 39Defining Vouchers 12 Smartphone Vouchers - Disadvantages and Issues 40Vouchers and Coupons – a Type of Sales Promotion 13 Mobile Wallets 41The Economic Downturn and Vouchers 14 Mobile Wallets in the UK 42Coupons and Vouchers – Definition and Drivers of Popularity: Summary 15 Security Concerns with Digital Vouchers and Coupons 43Digital Marketing – Coupons and Vouchers 16 Smartphone Coupons and Vouchers – Benefits, Disadvantages and Applications: 44 SummaryDigital Marketing – Coupons and Vouchers: Introduction 17 Voucher Sites and Printable Coupons 45Digital Media and Digital Marketing: Definition 18 Voucher Sites and Printable Coupons - Introduction 46Digital Shopper Marketing: Definition and Scope 19 Promotional Agencies and Coupon Distributors 47Digital Shopper Marketing: Benefits 20 Voucher and Coupon Websites 48Digital Shopper Marketing: Where Do Digital Vouchers Fit? 21 Awareness and Use of Voucher and Coupon Websites 49Digital Vouchers and Coupons – Definition and Different Types 22 Proportion of Shoppers Actively Seeking out Different Types of Coupons and 50 VouchersCoupons Around the World – Asia and the United States 23 How Often do Shoppers Print Coupons or Vouchers out 51Digital coupons: methods of delivery 24 Voucher Sites and Printable Coupons - Summary 52Digital Coupons: Methods of Delivery - Introduction 25 Use of Coupons and Vouchers 53Digital Coupons and Offers: Benefits 26 Use of Coupons and Vouchers - Introduction 54Digital Coupons and Offers: Benefits (2) 27 Finding Vouchers and Coupons for Food and Grocery Items 55Digital Coupons and Offers: Benefits (3) 28 Use of Food and Grocery Coupons 56Digital Coupons: Methods of Delivery 29 Vouchers, Coupons and Codes – Frequency of Redemption and Barriers for it 57Digital Coupons: Methods of Delivery (2) 30 Other Barriers for Coupon Redemption 58Digital Coupons and Vouchers: Methods of Delivery (3) 31 Loyalty Cards and Discount Vouchers Currently Carried Around by the Shoppers 59Digital Coupons and Vouchers: Methods of Delivery (4) 32 How Coupons / Vouchers are Used 60 www.evolution-insights.com 3
  • 4. ContentsPrice Matching Vouchers at Different Food and Grocery Retailers 61 Opting in to Relevant Offers to a PC (2) 88Supermarkets’ Comparison Systems – Tesco Price Check Usage 62 The Shopper Perspective: Trust, Personalisation and Information Disclosure - 89 SummarySupermarkets’ Comparison Systems – Asda Price Guarantee Usage 63 Methodology 90Supermarkets’ Comparison Systems – Sainsbury’s Brand Match Usage 64 Methodology 91Supermarkets’ Comparison Systems – Waitrose and Ocado Usage 65 Methodology: Quantitative Research - Survey 92Use of Coupons and Vouchers - Summary 66 Methodology: Qualitative Research – Focus Groups 93Technology as a Driver for Digital Coupons and Vouchers 67 Glossary 94Technology as a Driver for Digital Coupons and Vouchers - Introduction 68 Glossary 95Smartphone Penetration Among UK Primary Food and Grocery Shoppers 69 Contact Us 96Ownership and Use of Mobile Phones 70What are Shoppers Using Their Smartphones for 71Tablets and Other Internet Enabled Mobile Devices 72When do Shoppers Look for Vouchers Online 73Technology as a Driver for Digital Coupons and Vouchers - Summary 74Offers Sent to Smartphones: Push and Pull 75Offers Sent to Smartphones: Push and Pull - Introduction 76Push and Pull – Receiving Relevant Offers or Vouchers to a Smartphone 77When do Shoppers with Smartphones Want Coupons / Vouchers Sent to 78Their SmartphoneWhen do Smartphone Owners Want to Receive Offers to Their 79Smartphone – Push and PullWhen do Smartphone Owners Want to Receive Offers to Their 80Smartphone – Push and Pull (2)Offers Sent to Smartphones: Push and Pull - Summary 81The Shopper Perspective: Trust, Personalisation and Information 82DisclosureThe Shopper Perspective: Trust, Personalisation and Information 83Disclosure - IntroductionTrust vs. Tailored Offers 84Opting in to Relevant Offers to Mobile Phone 85Opting in to Relevant Offers to Mobile Phone (2) 86Opting in to Relevant Offers to a PC 87 www.evolution-insights.com 4
  • 5. Coupons and Vouchers – Definition and Drivers of Popularity: IntroductionFollowing the economic downturnshoppers continue to try and findways to save money where they can.This is re-fuelling the popularity ofvouchers and coupons that now comein many forms.In this chapter we attempt to explainthe difference between a coupon anda voucher and explore how shoppersperceive the difference. www.evolution-insights.com 5
  • 6. Defining CouponsThe industry says: Coupons, as opposed to vouchers, are for FMCG products, and have a one-off use limit, as they represent hard cash. The brand/producer of the coupon is at financial risk from uncontrolled distribution and over-redemption.Shoppers say: The word coupon to me I think a coupon is an means something that you A coupon I think is the old advertisement for a cut out of a magazine fashioned term, like product, like 50p off something you’d get in a magazine or newspaper I don’t think people really use A coupon is for a specific the word coupon item whereas a voucher can now be spent on anything usually www.evolution-insights.com 6
  • 7. Defining VouchersThe industry says: Vouchers usually include offers such as 2 for 1: 2 for £10 or 50% off. Vouchers are issued by the retailer and redeemed at that retailer only. Vouchers are self liquidating; the value of the voucher is built into the retailer’s product margin.Shoppers say: A voucher is something that I think you have to buy gets sent to you through the something to receive a post or something that you voucher like on Groupon have collected points for. It’s for example something that you get given A voucher is money that A voucher is actually you go and spend, a like cash, a coupon is coupon you have to buy just money off something to get money off www.evolution-insights.com 7
  • 8. Digital Shopper Marketing: Where Do Digital Vouchers Fit? Digital shopper marketing initiatives can be categorised in the same way as traditional shopper marketing initiatives. Digital vouchers and coupons are therefore just one category of digital shopper marketing initiative.Shopper marketing initiatives • At the simplest level digital shopper marketing initiatives share the same characteristics as traditional shopper marketing initiatives, and this aspect Vouchers can be separated from the way in which the initiative is targeted at the and shopper. Initiatives range from coupons, special offers and loyalty rewards to enhanced product information, recipe suggestions and even initiatives coupons that seek to improve the shoppers experience (for example by making their grocery shopping easier). Improving Loyalty point • Digital coupons and offers are among the best established digital shopper shopping rewards marketing initiatives in the market that are widely available and largely experience accepted by shoppers. Delivered by e-mail, SMS, websites, smartphone apps and digital kiosks in-store, digital coupons enable marketers to target shoppers with highly personalised content, in turn influencing the Shopper shopper’s decision making process. marketing initiatives • Also marketers may benefit from integration of digital coupons and vouchers with other digital shopper marketing initiatives. For example, with the advent of digital media it is possible to link redemption of digital coupons with loyalty schemes, or even directly with digital shopping lists or Product online baskets. Competitions information Recipe suggestions Source: Evolution Insights www.evolution-insights.com 8
  • 9. Location-Based Coupons and VouchersIn spite of the relevance and timeliness of location-based offers, currently only a small proportion (13.4%) of shoppers however saythey would like to receive them. Only 13.4% would like location- based offers to their In spite of sharing your mobile location with a coupon / voucher provider not being a great concern to primary food and grocery shoppers (only 26.0% say it concerns them), at the moment not many want location-based coupons and vouchers. www.evolution-insights.com 9
  • 10. Smartphone Vouchers - Disadvantages and IssuesThere are still some issues regarding the digital redemption of vouchers and coupons. Data security: Shoppers may still feel reluctant Know-how: Lack of knowledge of to give their personal details or don’t feel like how to redeem digital vouchers they benefit enough from the trade off. Signing up with a voucher site or registration on a retailer site may not seem worth the effort. Technical issues: Problems in scanning vouchers can cause delays and frustration Internet connection required: Network coverage issues are possible when internet connection is required for redemption of digital vouchers. Awareness: Shoppers aren’t necessarily Technology: Approximately half of shoppers still aware of vouchers being also digitally don’t have smartphones which means that using redeemable even if they have the digital coupons alone isn’t profitable for a retailer. technology, i.e. a smartphone required. www.evolution-insights.com 10
  • 11. Security Concerns with Digital Vouchers and CouponsAbout half of food and grocery shoppers admit to having security concerns when it comes to sharing personal information withcoupon providers or making payments with mobile phones. • Just over half (53.1%) of food and groceryConcerns over: shoppers say the security of payments made with a mobile phone concerns them. This, however Security of may change as mobile phone payments, especially ones using NFC (near field mobile communications) technology, become more common. Sharing personal payments • Almost half of shoppers (48.3%) also mention being concerned about sharing personal information 53.1% information with a coupon provider even if meant getting more relevant offers. Many coupon and 48.3% voucher providers require some personal information such as email address a phone number and sometimes even home address when signing up with their service offering. • Only approximately a quarter of shoppers are concerned about sharing their location with a coupon provider in order to get location-based Sharing my offers. Location-based offers are becoming more location 26.0% popular and popular providers are Foursquare and Google Offers (in the United States). www.evolution-insights.com 11
  • 12. Voucher Sites and Printable Coupons - IntroductionWith the increase in daily deal andvoucher websites finding vouchers orcoupons is no longer only a question ofcutting them out from a newspaper.This chapter focuses on coupons andvouchers in terms whether shoppersactively look for coupons and vouchersand whether they use differentwebsites for finding them.We also find out what proportion ofshoppers actively look for food andgrocery coupons and what other kindof coupons and vouchers primary foodand grocery shoppers look for and howoften they print coupons out. www.evolution-insights.com 12
  • 13. How Often do Shoppers Print Coupons or Vouchers out Just under a half (49.7%) say they have printed out a coupon or voucher in the last month. However, over a fifth have never printed one out.When did you last print out a voucher or coupon? 25 23.2 21.4 21.1 20 15.2 15 14.0 10 5.1 5 0 Today or In the last In the last In the last 3 Less than 3 Never yesterday week month months months 49.7% of shoppers say they have printed out a coupon / voucher in the last month www.evolution-insights.com 13
  • 14. Loyalty Cards and Discount Vouchers Currently Carried Around by the ShoppersOver a third (38.3%) of shoppers carry money off coupons or vouchers in their purse or wallet. • About a fifth (20.1%) of shopper say they carry Money off vouchers currently in your purse or wallet paper vouchers in their purse or wallet. Money off coupons for grocery items 38.3 • Over a third of shoppers say they currently carry money off coupons for food and groceries withCoupons that accumulate more loyalty points than them. normally 18.6 • Loyalty card scheme related coupons thatMoney off vouchers for other retailers in-store (not 8.4 accumulate extra points were carried with them food and groceries) by almost a fifth (18.6%) of shoppers. Restaurant discount vouchers 6.5 Money off vouchersDiscount coupons or vouchers for any other service currently in your provider 4.0 wallet 0 5 10 15 20 25 30 35 40 45 14
  • 15. Supermarkets’ Comparison Systems – Waitrose and Ocado UsageWaitrose Ocado Less than half of all primary shoppers are aware of either Waitrose or Ocado’s Brand Price Match systems. Only a tiny percentage of shoppers actually trust these Brand Match promises. More advertising needs to be done to raise awareness and create trust for these systems. n=1007 www.evolution-insights.com 15
  • 16. Push and Pull – Receiving Relevant Offers or Vouchers to a SmartphoneDo shoppers want offers pushed on them or only when requested? Push refers to Pull refers to shoppers information, in this case requesting something, in offers to this case offers delivered smartphone, being to their delivered without smartphone, through a request toward the marketing channel. shopper. www.evolution-insights.com 16
  • 17. Methodologywww.evolution-insights.com 17
  • 18. Methodology • Evolution carried out a preliminary survey of aroundEvolution’s methodology 100 shoppers to test questions for the main survey. • Detailed secondary and desk research is conducted to define the topic area, macro drivers and trends, scopeSecondary and desk Preliminary and examples within the research topic. research quantitative survey • Initial insights gained are used to help further design the main survey. • A main survey is completed by at least 1,000 UK adults who are the primary household shopper for food & grocery. Focus groups Main quantitative • Focus groups are carried out to further enhance the survey secondary research and main quantitative survey. • Comprehensive and detailed assessment of all the data received was then used to uncover insights. • Throughout this process, primary research was supported by secondary research drawing on Evolution’s proprietary databases, national statistics, news and industry resources. Insights www.evolution-insights.com 18
  • 19. Methodology: Quantitative Research - SurveyTopics of questions in quantitative survey Demographic profiling • Detailed shopper insights were gained from a survey of 1,065 primary Preferred retailer offline shoppers. The samples were fully representative of the UK population. Ownership and usage of technology • The survey contained 20 questions relating to topics outlined to the left – Brand loyalty vs. coupons / vouchers in addition to standard demographic profiling questions Voucher redemption and barriers to it • The questions were designed to give maximum insight into shopper’s Technology and data security concerns motivation and behaviour • Additional questions were asked to Awareness of voucher and coupon websites give further insights into general behaviour and attitudes into price How vouchers are used and opting in to offers comparisons. • The survey was carried out during the Printable coupons / vouchers week commencing 18th June 2012. Trust and giving out personal information Types of vouchers / coupons shoppers actively look for www.evolution-insights.com 19
  • 20. Methodology: Qualitative Research – Focus GroupsList of focus group participantsFocus Group Participants • 2 focus groups was conducted on Number of children in the 12th June 2012 with primaryGender Age Socio-economic household shoppers to gain further insightFemale 20-29 C2 2 into comparison behaviour.Female 30-39 D 3Female 30-39 C1 2 • The subjects covered were:-Female 40-49 D 1Female 20-29 C2 1 – Printing vouchers – Discount codes – Trust with personal information Focus Group Participants Number of children in – Timing of receiving Gender Age Socio-economic household vouchers Female 20-29 AB 0 – Smartphones and vouchers Female 30-39 AB 0 – Redeeming vouchers Female 30-39 C1 0 Male 30-39 AB 0 Female 20-29 C2 0 www.evolution-insights.com 20
  • 21. Glossarywww.evolution-insights.com 21
  • 22. GlossaryABC1C2DE – Socio demographic profile using job type (if applicable). Push refers to information, in this case offers to smartphone, being deliveredApp – A smartphone application without request toward the shopperCashback – money shoppers can claim back Redemption rate – the amount to which something is used, typically aCoupon – Coupons are for FMCG products, and have a one-off use limit, as they voucher.represent hard cash. The brand/producer of the coupon is at financial risk from Shopper context – Evolution’s model for determining the profile of anuncontrolled distribution and over-redemption. individual shopper.Demographic – Characteristics of the population (including sex, race, age and Shopper marketing – Any marketing activity aimed at the shopperincome). throughout their path to purchase.Digital media – digital marketing medium for example social media, mobile, digitalsignage. Smartphone – An internet enabled mobile phone device that runsDigital shopper marketing – Shopper marketing that utilises digital media applications (‘apps’).DSM – Digital shopper marketing Smartphone coupon – coupon that is sent to or accessed with a smartphoneEconomic climate - the general condition of the economy in a particular country or and can be either digitally or manually redeemedin the world Socio-demographic - Characteristics of the population (includinge-retailer/e-tailer – a retailer which trades online. sex, race, age and income).FMCG – Fast moving consumer goods, often used to refer to a manufacturer. Technologically savvy – someone who is up-to-date with and usesFood and grocery - Foodstuffs and various household supplies technology regularly.Internet enabled mobile device - e.g. an internet tablet or and internet enabled URL – Uniform resource locator (web standard for internet websitemusic player (not a mobile phone) addressing)Location-based offers – relevant and timely offers usually accessed by smartphones Voucher - Vouchers are issued by the retailer and redeemed at that retailerto nearby services or products only. Vouchers are self liquidating; the value of the voucher is built into theMicrosite – Internet website dedicated to a particular brand, using a different retailer’s product margin.(branded) URLMobile wallet - allows users to make electronic commerce transactions quickly andsecurely using a mobile phoneNew technology – Modern and up-to-date technologyOpt in – permission for receiving marketing messages or offers given by a shopper /customerPrimary shopper – the main shopper in a household.Promotion – Discounts and offersPull - refers to shoppers requesting something, in this case offers delivered to theirsmartphone, through a marketing channel www.evolution-insights.com 22
  • 23. Contact Us Evolution Insights Ltd Prospect House 32 Sovereign Street Leeds LS1 4BJ Telephone: 0113 336 6000 e-mail: insights@evolution-insights.com Web: http://www.evolution-insights.com Company No. 07006001 Country of Incorporation: United Kingdom © Evolution Insights Ltd. All rights reserved 23