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Fallon Brainfood: Coupons 2.0
 

Fallon Brainfood: Coupons 2.0

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Coupons 2.0 – How Shoppers Are Leveraging the Network to Beat Retailers At Their Own Game...

Coupons 2.0 – How Shoppers Are Leveraging the Network to Beat Retailers At Their Own Game

Coupons are on an upswing, driven largely by the internet, mobile, and the recession. But Coupons 2.0 are more than just the lure of "easy freebies." Coupons 2.0 are also about the enormous social access that the Internet and devices have unlocked for users, as well as the coupling with people's innate cultural need to "get over" on systems. Coupons 2.0 is about the new power of networks to enable shoppers to beat retailers at their own game. 

Fallon's digital strategists Sarah Crist (@scrist5) and Liz Giel (@lizgiel) reveal the drivers of success for enabling Coupons 2.0 thinking on your brands and demonstrate how the art of the bargain is evolving the retail model and commercial creativity.

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Fallon Brainfood: Coupons 2.0 Fallon Brainfood: Coupons 2.0 Presentation Transcript

  • Be sure to check-in on Foursquare and friendFallon Brainfood on Facebook for SPECIAL OFFERS!
  • Coupons 2.0How Shoppers Are Leveraging the Network to Beat Retailers at Their Own Game June 22, 2011
  • We are…Sarah Crist Liz GielDigital Associate Digital StrategistFallon FallonTwitter: @scrist5 Twitter: @lizgielLinkedIn: LinkedIn:http://linkedin.com/in/sarahcrist http://linkedin.com/in/lizgiel
  • We want to share what we’ve learned about theevolution of Coupons and the future of Coupons 2.0. -  The Coupon Comeback -  The Psychology of Saving -  More Than Dollars Off: Delivering the Thrill -  Turn Discount Addicts into Brand Loyalists -  How to Get in the Game
  • Coupons Make a Comeback
  • At the turn of the millennium, coupon use began to slide from 4.6billion coupons redeemed in 1999 to 2.6 billion in 2008.
  • Then the recession hit, triggering acoupon resurgence driven in large part by the Internet.
  • While coupon enthusiasts continue to find deals inSunday mailers, they supplement their stack withonline savings.
  • The rapid adoption ofmobile devices hasoffered an even moresimple approach tofinding and accessingcoupons.
  • Redemptions grew by 27% in 2009alone, with Internet coupons leading the way, rising more than threefold.
  • But the people redeeming couponsaren’t just those in economic need of savings.
  • Enthusiast couponers who use online coupons are most likely to be young and high income, with 60% making more than $50,000 HHI per year.
  • It’s become clear that the lure of couponing goes deeper than “easy savings.”
  • The Psychology of Savingis more powerful than the discount.
  • The great difference found between those highly prone to coupons and those less prone is “a strong underlying ego-related dimension” to extreme couponing.Source: Highly Coupon and Sale Prone Consumers: Benefits Beyond Price Savings 16Journal of Advertising Research (2003)
  • The “Krazy Coupon Lady” does not need to save hundreds of dollars on groceries.She needs the feeling she gets from saving.
  • Extreme Couponers aren’t the norm, but their behavior isan exaggerated version of the everyday coupon seeker. KRAZY EVERYDAY
  • “I loved it. I’d just gotten $10 worth of books free. It almost felt as if I’d shoplifted. It’s absurd that I should have felt so giddy. ” David Pogue (on Groupon), NYTimes Tech Journalist 20
  • Easy Savings does not explain the success behindsites like Rue La La and Gilt.
  • The average coupon user has developed anexpectation of savings that affects theirpurchasing behavior. Pricenoia — noun Insider Discount for Everyone! Pricenoia: A disorder characterized by the systematic verification of international sites when ordering from Amazon.
  • Marketers should focus on deliveringthe thrill of saving—not simply discounts.
  • Coupons 2.0 is the next era ofcouponing—leveraging the power of the network to enable shoppers to feel they’ve beaten retailers at their own game.
  • RESISTANCE IS FUTILE.Brands must embrace this mentality and offer consumers the rush they seek.
  • is not the enemy.Copyright ©2007 Fallon Worldwide. All rights reserved. The Krazy Coupon Lady
  • If you look closely, she’s actually driving awareness,traffic, and trial of your products. 23% of total monthly visits came from Krazy Coupon Lady
  • The key for brands is to use the appeal ofsavings as bait to maximize brand engagement.
  • Businesses that succeed in the era of Coupon 2.0 have identified ways to extend the feeling of accomplishment consumers experience when cashing in on deals. Copyright ©2007 Fallon Worldwide. All rights reserved.
  • Once You Got ’Em, Keep ’Em
  • For Old Navy, the lure of a $1 scarf brings peopleinto the store, but providing the rush of savingaround every corner leaves visitors with a full cart.
  • Backcountry.com’s version of the $1 scarf is Steep andCheap, a daily deal website which serves as a gatewayfor users to explore their site for additional savings.
  • Dairy Queen uses deals to recruit members for theirBlizzard Fan Club, fostering an ongoing relationshipwith their customers.
  • Totino’s uses the network effect to turn cheaployalists into social advocates.
  • These businesses have used discounts as bait to drive customers deeper into their brand. Copyright ©2007 Fallon Worldwide. All rights reserved.
  • But a unique lure attracts a unique crowd.Draw them in with an offer they can’t refuse.
  • The Cosmopolitan of Las Vegas offers deals in aunique and unexpected way.
  • Sun Country recently used Groupon as bait by offeringan unexpected product for unexpected value.
  • Businesses who use deal sites likeGroupon must make itworthwhile and offer consumers the perception they’re coming out on top.
  • Sun Country employed robust restrictions to ensurea positive business outcome from the deal whileconsumers marveled over the savings. pssst… not valid for travel on Friday or Saturday, must pick month, additional fees apply.
  • Sun Country should have taken the deal one step further,by getting users involved with their rewards program.
  • Target delivers the perception of savings euphoriawhile solving business problems. “The more you buy, the more you save!”
  • The allure of “everyday savings” is similar to loyalty programs where experiential savings attract repeat customers.
  • But the abundance of loyalty programs has lessened the appeal. Copyright ©2007 Fallon Worldwide. All rights reserved.
  • Modern loyalty programs include elementsof exclusivity to escalate the thrill of savings.
  • Zappos takes loyalty a step further and combinesexclusivity with competition, tapping into thegamesmanship that’s already present in finding deals.
  • Many location-based services tempt users withcompetition, but more importantly, deliver onrelevancy as well.
  • “Coming Soon” technologies willprovide even greater opportunity to deliver the thrill of savings.
  • Near Field Communications (NFC) allowsfor simplified transactions, dataexchange, and connections with a touch.
  • A “futuristic” example of how NFC will affect coupons and discounts. Consider arriving at the Use your cell phone Ten minutes later, you To check out, your phone airport on vacation and as your room key via receive a message from the can be used before exiting receiving a check-in NFC chips in the front desk to ensure you’re the hotel lobby. You arenotification from your hotel device and the door satisfied with your room. given a quick satisfaction that contains your room handle. They also offer 15% off survey and, in return,key so you can bypass the room or spa services. bonus loyalty points for front desk. your participation. Source: ASSA ABLOY Mobile Keys at Clarion Hotel Stockholm
  • Starbucks Card Mobile is an early example of whatwill soon be the norm, allowing customers to checkrewards and make purchases from a mobile device.
  • A rise in smartphone ownership coupled with NFC deployment will increase mobile coupon adoption. • POS equipment for Mobile Coupon Adoption redemption • Consumer awareness • Lack of CPG offers • Opt-in process • NFC deployment • Consumer interest • Real-time offers • Geo-targetingSource: JupiterResearch (2/08) Time
  • In summary, there are a few key drivers when itcomes to maximizing the thrill of savings.-  Once You Got ’Em Keep ’Em-  Utilize the Network Effect-  “How Could I Not?” Deals-  Insider Trading-  All the World’s a Game-  Hit Them with Uber-Savings
  • What does this look likefor Fallon and Fallon Brands?
  • Insider Trading: “Like” Fallon Brainfood
  • Utilize the Network Effect:Unlock the Dessert 10 People Check-in
  • Once You Got ’Em, Keep ’Em: Cadillac
  • All the World’s a Game: Totino’s
  • Text “Freepizza” to 23459 to find out where you can spot the Totino’s Party Pizza!
  • Hit Them with Uber-Savings:Nordstrom
  • Use thepromo code“TAGSCAN”for 20% offyour order!
  • To succeed in this new age of couponing,you need to enable your consumers to feel they’ve “won” a battle against retailers.
  • Our Parting Words:What marketers can do today.1.  Focus on delivering the thrill of savings—not technology or savings alone.2.  Ensure business goals are considered when developing promotion ideas and loyalty programs.3.  Make sure e-mails are mobile-optimized.4.  Start thinking about the customer purchase process, and find opportunities to provide the excitement of saving money throughout the entire experience.5.  Capitalize on the increased foot traffic that comes with using offers as bait.