Mindshare consumer barometer vouchering edition


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Mindshare consumer barometer vouchering edition

  1. 1. Consumer closeness barometer Spring 2012 Vouchering
  2. 2. This is the first in a series of on-going Our investigation was carried out on reports commissioned by Mindshare The Hive, Mindshare’s exclusive co- to evaluate consumer confidence creation community. This community in relation to the current economic has been set up to help us get closer climate in the UK & to assess how to the British public enabling us to different trends are impacting upon embed the consumer voice in our consumer spending. thinking. In this report we have focused on The Hive is populated by 300 the impact of vouchering schemes members from around the UK, all of on consumer spending, exploring whom are slightly ahead of the curve whether their prevalence is creating when it comes to adoption. any sense of a discount society amongst consumers.2 Spring 2012 Mindshare’s Quarterly Confidence Barometer
  3. 3. ● Confidence is in short supply, with no ● It could all get a lot worse beforeclear direction forward. it gets betterThere is a slight perception that the private sector is on Many of our community can cast their minds back toa road to recovery, but this belief is extremely fragile. times when recession periods had a huge impact on theAlthough the financial crisis in the EU was raised by lives of the general population – “I can remember 15%our community as one of the most important factors inflation, 3 day week, 83% highest rate of income taximpacting on future stability, there was a sense it being (+ 15% investment income surcharge for your savings)out of their control, and to a degree, an almost academic and no refuse collected from households”. Although theproblem. Issues closer to home were of more immediate community were in agreement that things were not asconcern – the future of the public sector over the next bad as they had been in the past big recessions, manyyear or so, and the impact this could have on day to day expressed concerns that this type of outcome was still alives, were a much more tangible fear for many. very real possibility in the future.3 Spring 2012 Mindshare’s Quarterly Confidence Barometer
  4. 4. “ think back to how grim things felt in the I late 70s and early 80s – bin men on strike, emergency workers on strike, miners on strike… and it seemed like there were cuts on top of cuts, on top of cuts”Meeow999, Female, 45–54
  5. 5. ● It’s all out of my control… ● On a day-today basis, consumers are more conscious about their spending habitsEven the most optimistic of consumers appear to have Consumers are now much more self-aware when it comesvery little sense of direction or vision for future growth – to their purchasing behaviour, with the equation of risingfrom either the UK Government or wider global powers. bills, and stagnant pay packets high on the agenda.Consumers do not feel that the government have done With luxuries being reigned in for many, we have alsoenough to explain the implications of poor economic seen the rise of a niche savvy shopper who is moreperformance, or relate this to the individual. careful about their day to day purchasing. The recessionAs yet, consumers are not personally seeing the has given permission for these individuals to becomebenefits of any growth, with the long haul of the much more heavily reliant on high street deals andrecession wearing people down – “I’m feeling pretty vouchering schemes, and they are actively playing thedepressed about the economy and fed up feeling system wherever they can.depressed about it.”5 Spring 2012 Mindshare’s Quarterly Confidence Barometer
  6. 6. “I personally feel I haven’t caught up at all sinceall this began. I’m trying to save as much asI can so if anything does happen in the nearfuture, I have something to fall back on.I honestly don’t know why all this is happening,I don’t think that the government have doneenough to help people like myself, nor havethey explained what it all means.”lkscotland, Female, 18–24
  7. 7. “Five years ago, there were nowhere near as many online vouchers available as there are today. In the last couple of years they’ve become really popular…. John, Male, 35–44● Awareness of vouchering schemes is high,however, adoption is less widespreadVouchering schemes have entered the public widespread. Bad press around Groupon had damagedconsciousness big time, with the vast majority of consumer trust in these services, and the types of offersrespondents having heard of at least one vouchering available were simply not compelling enough for manyscheme. In particular this has been driven by the of our consumers – “I have signed up to loads of theseproliferation of services, such as Groupon and schemes and receive lots of emails every day (somemyvouchercodes, as well as through trusted advice from schemes that I don’t remember signing up to!), butforums such as moneysavingexpert.com don’t really use them, as I don’t usually have the time to read them all, and it is very rarely that I see somethingExploration of the various sites, and signing up to receive that I want. I’m sure that they are of use to some people,emails and alerts was similarly impressive. However but as I’ve stated, I rarely see anything that appealsdespite this strong initial base, active uptake – outside of to me! “the ubiquitous pizza express voucher – was much less7 Spring 2012 Mindshare’s Quarterly Confidence Barometer
  8. 8. ● How has technology Influenced Voucher adoption?For the top tier of voucher users, technology has they are products/brands that I love, and that I eitherprovided a platform for comparison and they were choose to shop with regularly, or can’t afford to shopactively trawling the Internet for the best deals. Our niche with often, and the vouchers/general online deals theyusers had signed up to a wide range of discount sites send can make a difference to me financially.”including groupon, living social, wowcher, voucher could, For the majority of voucher users, however, existingmy voucher, KGB, Priority Moments and HUKD. They were technology lags behind expectation, for the followingalso making active use of Facebook to find discount on reasons:their favourite brands – “I also like pages on Facebook tokeep an eye on coupons that come up. I do it because8 Spring 2012 Mindshare’s Quarterly Confidence Barometer
  9. 9. FINDING WHAT THEY’RE SAYING Experience based vouchers are not “I seem to get sent all sorts of things but YOU DON’T targeted, and therefore consumers feel none of them are ‘for me’... I ignore most KNOW ME overwhelmed of the emails” OFFERS Consumers tell us that they tend to eat out “Somewhat ironically, I have not used at the same restaurants and buy the same voucher schemes as I’m subscribed to CONTRADICT products; they want discounts on the things emails from my favourite restaurants and LOYALTY that they use shops and they send me offers direct” The process of sourcing relevant discounts, “I think scrabbling about in your bag for IT’S NOT REALLY then printing and remembering to claim pieces of paper is unseemly” SIMPLE vouchers, is seen as a hassle9 Spring 2012 Mindshare’s Quarterly Confidence Barometer
  10. 10. ● Where next for Vouchering? For the majority though, awareness of this type of service Consumers perceive that smartphones are the next just hadn’t registered yet. natural home of the e-voucher – with the hope that apps And for those in our community who were using would streamline the process of locating, and vouchers on a more regular basis, they saw little chance using offers. that their shopping behaviour would revert back to full Smartphone voucher uptake was in place amongst a price once the economy recovers. Realisation of how minority of our community, and for these converts, the much profit companies had been making before the experience was a much more straightforward process – recession, had clearly impacted on their attitudes; “I “I use vouchercodes on my smartphone. I think they are wouldn’t buy anything without vouchers if they were a great way to save money and much quicker and easier available. Why pay the full price? There is so much than printing off vouchers at home. I’ve used two in the discount available, that it is clear retailers make huge last week just by showing staff my phone. Who wouldn’t profits anyway.” want to save money, this can only be a positive thing!”10 Spring 2012 Mindshare’s Quarterly Confidence Barometer
  11. 11. “I think many people perceive vouchers asthings that poor people might use to help themmake ends meet. Although I think in this day andage, with money problems, any kind of voucheris more acceptable to use… I do think thatelectronic vouchers are much more acceptable;most people have a smartphone now areembracing technology, so it’s just anotherapp on your phone”Jren207, Female, 18–24
  12. 12. “To be honest, I’m not sure I can be bothered to search out relevant vouchers.Meet MATT MikeGParry, Male, 35–44The Apathetic Occasional “I have heard of Groupon, Wowcher, Keynoir, etc… I don’t use them. I think they’re a great idea but I’ve just never been that bothered to use them. I think that I am terribly lazy;Matt did originally sign up for purchases. Matt did originally sign I don’t want to jump through lotsa couple of the big schemes, up for a couple of the big schemes, of hoops for the chance to havebut found them too much of but found them too much of a hassle, 5% off… It’s not convenient anda hassle, as he kept getting as he kept getting bombarded with just too complicated”bombarded with emails about emails about stuff he didn’t want. He Larysa, Female, 25–34stuff he didn’t want. told us that the process of findingHe is in his late twenties or early a voucher, printing it, rememberingthirties; he tends to know what it is to take this print out to the storehe wants to buy in his day to day and then claim at the till, was justlife and is loyal to particular brands too much – the up front investmentwithin his routine. Matt perceives that doesn’t justify the saving.he is too busy to be bothered with He is excited about the possibilitiesvouchers – if one falls in his lap, then that smartphones can offerhe might use it however, it’s unlikely vouchering and sees location basedhe will actively seek savings on his services as an exciting next step, so long as he has control over the offers he receives.
  13. 13. Meet Carol The Surprise Me Shopper Carol represents the majority possible. Carol has signed up to a “I use the ASDA price check thing and of digital voucher users. couple of online voucher services. sometimes get money back from my She has a part time job, however Most of the time she feels a little weekly shop, which always helps… her routine centres around her two overwhelmed by the number of I also have a Tesco clubcard and so young children – who keep her busy ‘random’ offers she is sent, but every use the vouchers that they send me much of the time. Carol is in charge once in a while there is a diamond in from time to time. of the household shopping and the rough. These occasional bargains Skiller40, Female, 45–54 regularly uses her Tesco vouchers, help to make her feel like a savvy making sure she gets maximum and satisfied bargain hunter. “Vouchers give the average customer value out of the scheme wherever a little treat and make them feel like She uses these vouchers to enjoy they’re getting something special. some quality ‘me’ time – investing There are things that I don’t yet in a haircut or a spa day, with know I want… These are the things friends. ‘Finding’ a discount on these that will delight” expensive luxuries is a real treat GloriaD, Female, 35-–44 allows her to justify the expense.13 Spring 2012 Mindshare’s Quarterly Confidence Barometer
  14. 14. Meet Marlene The discount diva Marlene actively seeks out Marlene recognises that different discounts on all products sites will promote different offers, she buys – she represents often within the same product the very top tier of voucher category. If there is a product she “I never buy anything without users. Marlene retired a couple of spots, she will hunt down the best using vouchers! I currently use years early and her children have saving. In order to help streamline many internet forums and the left home – she spends a number this process, Marlene is a member mobile app Quidco, which can of hours each day trawling the of multiple online saving sites give me instant in store vouchers Internet for the best possible deals. and frequently uses price and also cash back opportunities. It’s important for Marlene to keep comparison sites. Activist3, Male, 55–64 an eye on the pennies, particularly She will also actively seek out in these tougher economic times “Just yesterday, I bought a Dettol paper vouchers in magazines. (although she isn’t necessarily from No Touch Cucumber Splash Hand She has limited brand loyalty – a low income background). Wash System from Superdrug for her shopping habits are dictated by £4.79. In payment, I used a £5 off price and on finding the best deals. voucher, which meant they paid me 21p to have the product – this was deducted from the rest of my shopping.” CrazyDaisy, Female, 45–5414 Spring 2012 Mindshare’s Quarterly Confidence Barometer
  15. 15. Our quarterly Consumer Closeness report sits alongside our Future Of… programme, Mindshare’s futurefacing research initiative which examines emerging technologies within the media landscape.To receive more information about either of these initiatives, please contact Trevor Roberts or JeremyPounder via firstname.surname@mindshareworld.com