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The Value Of Coupons
- 1. The Value ofCoupons
- 2. Consumer Spending Trends(Source: Department of Labor; Bureau of Labor Statistics 2007 data)
- 3. Consumer Shifts Theeconomy is making people rethink what is important for them to have in their daily lives.
- 4. Looking through the“Lens of Affordability” “ Without question, coupon usage is undergoing a renaissance. More consumers are looking for value and lower prices as retailers andmanufacturers are distributing more coupons…” -Todd Hale, Nielsen Senior VP
- 5. Coupon Users Allages use coupons! Source: Consumer Internet Survey Panel of 1,000 people Coupon users broken down by income: Source: Consumer Internet Survey Panel of 1,000 people Source: Promotion Marketing Association, Inc 95% 65+ 94% 55-64 94% 45-54 93% 35-44 96% 25-34 92% 18-24 % using coupons Age 93% $100,000+ 96% $75-$100,000 96% $50-$75,000 96% $25-50,000 89% under $25,000 % using coupons Income
- 6. Coupons are “IN”Usage 76% of consumers say they use coupons regularly 98% of consumers use coupons for groceries; followed by 75% for restaurants/dining out and 60% for clothing.* 3 out of 4 adults are more likely to return to a store that offers coupons.*** Influence 94% said a coupon is "somewhat likely" or "likely" to influence them to switch brands/retailers.* 95% of coupon shoppers say that coupons influence them to try new products.** 89% have made up a shopping list using coupons, up from 78% a year ago. 67% share/swap coupons and hot deals with family and friends.* *RedPlum 2009 Online Survey **PMA Coupon Council, 2009 ***ComScore 2009 ****ICOM Information & Communications, 2009
- 7. Shoppers Want Couponsto Reach Them at Home Through Direct Mail Source: DM News and Pitney Bowes “Direct Mail Survey” 2009 How do you prefer to receive coupons?
- 8. Shoppers are Lookingfor Coupons in the Mail According to a DMNews survey sponsored by Pitney Bowes, receiving information in the mail prompted 37% of consumers to purchase a new brand or patronize a new business, while 68% were prompted to renew a brand or business relationship. Are you currently examining your mail more carefully for promotional offers or coupons than six months ago? Source: DMNews/Pitney Bowes direct mail survey
- 9. Shoppers Increase TheirUse of Direct Mail Coupons *DM News and Pitney Bowes “Direct Mail Survey” 2009 **PMA Coupon Council, 2009 How has your use of coupons received in the mail for these products changed in the past year? * 94% of the overall population report that they have used coupons when shopping (for grocery, household and healthcare items). 89% of the overall population report that they have prepared a shopping list using coupons, up from 78% a year ago.**
- 10. Coupon Redemption Whatis the most important to you in a mailed coupon, when choosing whether to redeem it? (Based on Rankings of 1 st , 2 nd , and 3 rd combined) Source: DMNews/Pitney Bowes direct mail survey
- 11. Value in theMailbox Drives Results for Restaurants “ In addition to Internet coupons, coupons received at the restaurant and those received in the mail have also been more popular with consumers.” The use of traditional coupons clipped from a newspaper or magazine were down 2%. In the quarter ended in June, visits on a buy-some-get-some-free deal, which accounted for 7% of all deal visits, were up by double digits over a year ago, and visits on a combined-item special, which accounted for 20% of all deal visits, were up by 3%. "Value is driving consumers to eat out more, as are having less time to cook and an uptick in workers per household.“ Source: *RBC Capital Markets' September restaurant spending survey; NPD: Customers hungry for freebies, Internet Coupons
Editor's Notes
- #3 The ‘average consumer unit’ actually consists of 2.5 total people, with 1.3 earners. Housing takes up the biggest chunk of money - 34.1%, followed by transportation (17.6%) and food (12.4%). Food spending is 12.4% total, with ‘food at home’ coming in at 7% and ‘food away from home’ at 5.4%. Which means about 43.5% of food spending - or $2667 per ‘consumer unit’ - is spent annually on restaurants, take-out, etc.(Source: Department of Labor; Bureau of Labor Statistics 2007 data)
- #8 Despite some beliefs to the contrary, shoppers actually like getting mail. And lately, their mailboxes have been emptier than usual. This gives your message an even better chance to stand out. Direct mail’s reach also bridges store visit gaps. One of your better shoppers may not visit your store for a week or even two. They have spread their shopping among more retailers as grocery products become available at more retail outlets. If you run an in-store program during those idle weeks, you miss that shopper. But if you send something to their home, you will not only reach them, you may get them to return to your store sooner.
- #10 If You’re Selling Groceries, You Should Use Direct Mail! A recent survey indicates that shoppers have increased their use of direct mail coupons most when shopping for groceries. 66% of shoppers increased their use of direct mail coupons to some degree in the past year! IN ADDITION TO THAT: 94% of the overall population report that they have used coupons when shopping (for grocery, household and healthcare items). 89% of the overall population report that they have prepared a shopping list using coupons, up from 78% a year ago.
- #12 The recession is pushing more people back into the workforce, Miller noted, meaning certain families have less time to cook at home, a typical driver of eating out at restaurants. In addition, research showed that respondents pointed to better job security and less need to save money as reasons behind increased tendencies to eat out. Still, the primary reason for increased plans to dine out rests on value. The surge in dollar menu items, bundled three-course meals or fixed price menus have helped spur restaurant traffic.