Voucher Codes


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A research led presentation on the current trends and usage of voucher codes within the UK market.

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  • Voucher Codes

    1. 1. Voucher Codes – An Added Cost That Is Open To Abuse Or A Valuable Customer Acquisition And Retention Tool?A research led presentation that explores the UK consumers approach to online shopping in a variety of vertical sectors. With the ever increasing volume of online voucher codes and money saving initiatives available to the consumer, has buying behaviour changed? This presentation will use real consumer information gathered by iCD Research to demonstrate how the customer journey and decision making process had changed during the credit crunch and how it has impacted the retailer.<br />
    2. 2. Presenters<br />Paul Dixon: Global Managing Director: Research<br />Paul has a long and established background in market research, working in Australasia, the Americas, EMEA and the UK with clients that included Microsoft, the International Herald Tribune, O2, Tourism Australia and Virgin Money, to name a few. <br />In 2005, he was appointed research and insight director of The iD Factor and 18 months later was responsible for the creation of the Group’s research consultancy division, iCD Research. Paul now oversees both expanding divisions.<br />Gavin Male: Group Sales & Marketing Director<br />Gavin is responsible for multi-divisional sales within TMN Group as well as supervising the marketing of the group and its divisions. Gavin has worked for the Group since April 2002 and during his career he has worked his way from a sales account manager, to Sales Director and then Managing Director of tmnmedia. Gavin has worked extensively in a number of online methodologies - Affiliate Marketing, Email and Lead Generation.<br />
    3. 3. A history...<br />1887 - The first coupon appears.... <br />The coupon culture explodes<br />Investment from business<br />Change to consumers mindset<br />
    4. 4. The UK market for coupons<br />29% increase growth in coupon distribution<br />20% growth in total value redeemed from £400 m to £497m<br />Direct mail dominating distribution with 47.1% of market share<br />54% of coupons delivered carry unique tracking codes<br />Multi brand promotional offers amount for 20% of distribution<br />Not a TRADITIONAL coupon culture..<br />
    5. 5. Brands using voucher codes... Dell, M7S, currys, Argos... There are 1000’s of brands... The only one we’ve seen ‘backlash’ is John Lewis... Who ironically grew through voucher codes<br />Present Day...<br />650% growth over the past 12 months (ISP)<br />Sainsburys invest multimillions in a coupon loyalty scheme<br />10,800,000 results for ‘voucher codes’ in Google<br />Over 50 websites paying for PPC clicks on Google.<br />IAB regulates voucher codes best practise as of beginning of 2009<br />Majority of brands open to using online voucher codes. <br />
    6. 6. A common held theory...<br />Consumers follow a very long purchase process in order to get to their final purchase... <br />Content and review sites...<br />...to cost comparison sites...<br />...to voucher code sites...<br />...to cashback sites...<br />...to the store and purchase...<br />Cookies dropping here, there and everywhere.<br />
    7. 7. We know the affiliate view...<br />But what’s the consumer perspective...<br />
    8. 8. The Consumer View<br />
    9. 9. For the first time in over 18 months, consumer confidence is up<br />Consumer Confidence Index<br />
    10. 10. And there’s never been a better time to purchase major goods<br />Major Goods Index<br />
    11. 11. Or household goods<br />Household Goods Index<br />
    12. 12. Unrivalled Understanding of the UK Consumer<br />
    13. 13. Consumer confidence is UP<br />It’s perceived to be a GOOD time to purchase<br />How does the UK consumer purchase products?<br />
    14. 14. FACT 1<br />The consumer decision making process hasn’t changed over time<br />
    15. 15. The customer journey<br />
    16. 16. FACT 2<br />Within the purchase process, consumers are taking different routes, variations and seeking numerous possibilities – all of which, are linked to the value proposition<br />
    17. 17. We spoke to the population to see what had changed in the last 18 months<br />The public said...<br />18 months ago, ‘coupons’ were something you would associate with American grocery shopping – now I find myself actively searching for codes for most of my purchases<br />If I was 50% online shopping before the credit crunch, I’m now 90% - at least<br />You have to be more savvy now and explore all your options<br />I find it difficult to trust what is genuine and what is basic SPAM. <br />This is the power of the Internet isn’t it – there is always a better deal out there<br />I always shopped online for convenience, now I do it for the price benefit<br />There’s always some reward to purchasing particular products – you just need to work out which is best for you<br />
    18. 18. FACT 3<br />The opportunities to engage before the journey are endless<br />
    19. 19. Travel<br />DVD<br />Television<br />
    20. 20. Need Recognition &gt;&gt;&gt; Information Search<br />Time Spent During Stage<br />Where Started Process<br />2-4 weeks<br />Less than 1 week<br />1-2 weeks<br />
    21. 21. What people do when searching the for information about the product<br />
    22. 22. Increased opportunities to engage - Information Search --- before start of Purchase Decision<br />
    23. 23. FACT 4<br />The opportunities to engage within <br />the purchase process still exist<br />
    24. 24. During the purchase process<br />
    25. 25. Why do people engage with multiple channels throughout the purchase decision?<br />It asked me if I had a voucher, which I didn’t, but I went to find one – result!<br />I had made the decision and found the flight but at this stage I still thought there might be a better deal out there – no harm in one final search<br />A final check on the prices<br />I’m a member of various shopping sites so I just wanted to see what they would offer as I get cashback with them<br />Spoke to my friend who bought the exact same model to see what website she went through<br />Quick scan on ebay to see whether I was making the right decision<br />
    26. 26. FACT 5<br />Voucher codes are increasing in usage <br />with a varied but attractive user profile<br />
    27. 27. Profile of Voucher Code Users<br />54%<br />Male<br />48%<br />Aged 18-34<br />47%<br />Professional<br />17%<br />Earn over £50,000<br />13%<br />Social Grade A<br />22% of UK recent shoppers interacted with a voucher code site <br />at some stage of their consumer decision making process.<br />
    28. 28. Profile of Cashback Users<br />55%<br />Male<br />57%<br />Aged 18-34<br />52%<br />Professional<br />18%<br />Earn over £50,000<br />14%<br />Social Grade A<br />25% of UK recent shoppers interacted with cashback sites at<br />some stage of their consumer decision making process<br />
    29. 29. Similar Profiles – Different Consumers<br />Have used Voucher Codes or Cashback Sites during the entire purchasing process<br />Have used both Voucher Codes and Cashback Sites during the actual purchasing process<br />
    30. 30. Why did you use a voucher code website<br />Voucher codes are useful, sometimes, they give a good discount on the purchase I make.<br />I tried to use some, but was unable to find any relevant ones- I wanted to save some money if possible.<br />Try and get the best price<br />Because it brought the price down further<br />I looked for discounts to see if I could save any money on the flights<br />
    31. 31. Where did you go?<br />I originally searched and found a couple of good sites which are bookmarked now and I use when I need to<br />There are a few good sites I tend to use to browse for discount codes, as larger, popular retailers sometimes have a discount (and I try to find the best deals and get the best price I can)<br />Just searched for it – google and I found it pretty quickly<br />Came in the email<br />Looked for holidays with voucher discounts online, catalogue and at travel agents.<br />
    32. 32. What makes a good voucher code site<br />Just make it simple to understand. So many of them requires you to jump through hoops to find the one code you need – I want something simple and fast<br />You have to judge whether you trust the site and you have those first couple of minutes to make the judgement call.<br />Something that does what it says it is going to<br />A well designed site that is simple to use<br />
    33. 33. What makes a bad voucher code site<br />There is amazing amount of absolute crap out there – one site had more pop ups than codes and when I made a simple search, it delivered nothing of use – can’t even remember the name of it but don’t ever go there<br />Clutter – just make it simple and I’ll go there but some of them look like grads have put the site together as part of a project<br />When it doesn’t deliver. If you’re a voucher code – I suggest you actually offer codes rather than trying to sign me up for other things<br />Complicated site – it needs to be quick<br />
    34. 34. FACT 6<br />Voucher codes are best suited <br />towards specific vertical sectors<br />
    35. 35. Vertical Sectors Have Searched For Voucher Codes<br />
    36. 36. FACT 7<br />Voucher codes drive satisfaction; loyalty and advocacy<br />
    37. 37. How Satisfied Were You With The Process You Went Through<br />
    38. 38. How likely would you be to recommend the same process <br />
    39. 39. FACT 8<br />The promoter MUST do it right, otherwise you run this risk…<br />
    40. 40. You mentioned you used a voucher code site, but were dissatisfied with your experience. In your own words, can you explain why?<br />Have you seen the voucher code sites out there – have a look and then ask me the same question<br />Why would I bother again. Yes, I could have saved £25 but for the 25 minutes it took me to navigate through the site, trying to find what I thought would be just a simple code – I was more frustrated than that I would have been if someone had ripped up £25 from my wallet in front of me<br />Online vouchers should be as simple as cutting a voucher from a catalogue. It’s not. Scissors for me these days<br />
    41. 41. CONCLUSION<br />Consumers aren’t stupid<br />Leave a loophole and it will be exploited...<br />BUT...<br />Managed correctly, coupons can be highly effective<br />Must have customer engagement<br />Target audience with relevant offers, and brands<br />A Valuable Customer Acquisition and Retention Tool<br />
    42. 42. Many thanksgavin.male@tmngroup.com– TMN Group – All Servicespaul.dixon@theidfactor.com– TMN Group – Research Feedback forms...<br />