2k16 valassis coupon intelligence report savvy shoppers®-coupon-intelligence...the 2k16 valassis®...

2K16 Valassis® Coupon Intelligence Report

SAVVY Shoppers

provide

intelligent media delivery

REALITY

CHECK

FACTS

Table of ContentsExecutive summary ....................................................................... 3

Industry context: digital and print coupon use .............................. 4

Print coupons are essential ..................................................5 Affluent shoppers use coupons ..................................................7

Smart, brand loyal shoppers use coupons ................................ 8

Coupons offer more than just a discount ................................ 9

Savvy shoppers rely on a mix of print and digital coupons ........... 10

About the study ........................................................................... 12

Valassis Generation Age Segmentation

Millennial: born 1982 - 1998

Generation X: born 1965 - 1981

Baby Boomer: born 1946 - 1964

<< | return to table of contents | >>

Executive Summary

FACTS1. Print coupons are essential

2. Affluent shoppers use coupons

3. Smart, brand loyal shoppers use coupons

4. Coupons offer more than just a discount

Overall, +

3

The 2K16 Valassis® Coupon Intelligence Report “Savvy Shoppers

Provide Reality Check” examines coupon and shopping behavior

across generations and provides detailed insight into digital

and print coupon usage.

Do consumers agree or disagree with what the industry buzz

says? This is their report.

coupon use remains high with 90% of consumers reporting that they use coupons.There are no significant differences in coupon use across

generations or income levels. Even brand loyal shoppers are

using coupons and switching stores to take advantage of weekly

specials. Coupons have also moved beyond the final purchase

incentive with the majority of consumers using coupons to

plan purchases in advance.

As expected, consumers are becoming increasingly savvy in

their use of smartphones and other digital technology when

it comes to shopping and making purchasing decisions. Use

of paperless discounts (from mobile devices and store loyalty

cards) and coupons has increased among all age segments, with

millennials leading the way. The increase in digital options has

likely contributed to smarter shopping as consumers look

to spend their money more wisely.

Print remains relevant today as the majority of

consumers report using print coupons for a variety

of reasons. Findings emphasize that consumers

continue to look for value – no matter the source

– and are quick to integrate both print and digital

coupons into their shopping plans and purchases.

The report focuses on consumer behavior related to shopping

for traditional consumer packaged goods (CPG) categories (food,

over-the-counter medications, household items, and health and

beauty products).


Digital and Print Coupon Use

Millions of U.S. consumers use coupons, and according to Scarborough

data, the number of print and/or digital coupon users has remained

steady over the past 4 years.1 When looking at each channel individually, the digital coupon user base

has grown 27% since 2012 to 68.4 million users. The print coupon user

base, although down slightly since 2012, still makes up 116.3 million

coupon users, solidifying print as a tremendous medium for scale.1

According to NCH Marketing Services’ 2015 coupon distribution* data,

print coupons via the Free-Standing Insert (FSI) account for over 90% of

coupons distributed and represent nearly 50% of coupons redeemed,

while digital coupons account for less than 1% of distribution and

represent nearly 12% of redemptions.2 In terms of scale (households

reached) and volume (units moved), print FSIs continue to dominate.

*About Coupon Distribution: It is important to consider the influence on a consumer’s path-to-purchase when executing coupon strategies. For instance, coupons and promotions delivered in-store serve a purpose of activating and influencing a consumer at point-of-purchase to stimulate an impulse buy, compete on price and/or influence the consumer’s choice of brand within a category whereas coupons delivered in-home in the FSI serve the purpose of influencing the planning process and shopping list of a consumer.

CONTEXT:INDUSTRY

+90%

via the Free-Standing Insert (FSI)

<1%

via digital coupons

Coupon Distribution*140,000,000

120,000,000

100,000,000

80,000,000

60,000,000

40,000,000

20,000,000

02012 2013 2014 2015

Digital and Print Coupon Users 1

Digital coupon users (email, text, QR code, Internet sites/apps)

Print coupon users (newspaper, magazine & mail)

4

116.3MM print coupon users

68.4MM digital coupon users

Coupon Users

~50%

via the Free-Standing Insert (FSI)

~12%

via digital coupons

Coupon Redemption


*Discounts I receive on my smartphone/mobile device and/or download onto my store ID/loyalty card Base: coupon users

Did not change vs. last year

Total Millennials Gen X Boomers

My use of coupons 54% 41% 58% 60%

My use of paper coupons I get in the mail

62% 49% 66% 66%

My use of paper coupons I get from a newspaper coupon book

60% 49% 64% 65%

My use of paperless discounts* 58% 44% 63% 65%

87%

Across generations, used the same or more coupons

vs. last year

88% 87% 86%Overall coupon use remains high among consumers, with

87% of coupon users reporting they are using the same

or more coupons this year. While digital coupon use is

increasing, the majority of coupon users are maintaining

or increasing their print coupon usage, underscoring

the relevance of print and digital channels and urging an

integrated strategy where consumers look for value.

Print coupons are essential

When considering your purchases in all store types such as grocery stores, mass merchandisers, drug, or dollar stores, please indicate how each of the following have changed this year in comparison to last year. Please select one for each statement.

To

tal

Mill

ennia

ls

Ge

n X

Bo

om

ers

5

Increased vs. last year

Total Millennials Gen X Boomers

33% 47% 29% 26%

24% 34% 22% 16%

23% 35% 21% 18%

30% 45% 27% 22%

FACT #1:


In fact, 87% of all consumers use print coupons they receive

in the mail, while 82% use those via a newspaper-delivered

coupon book (also known as the FSI). It’s no surprise the

percentage of millennials using digital paperless coupons

they receive on their mobile device or download onto

their retailer loyalty card is significantly higher than the

average consumer. But, it may be surprising to learn that

millennials use traditional print at very similar rates as well.

I use paper coupons Total Millennials Gen X Boomers

MI get in the mail us 87% 85% 90% 86%

I get in a store 87% 85% 90% 86%

I get from a newspaper coupon book

82% 82% 83% 79%

I print from my computer 78% 78% 81% 74%

I use paperless discounts* 66% 81% 74% 50%

Print Coupon Use Remains High

*Discounts I receive on my smartphone/mobile device and/or download onto my store ID/loyalty card

Millennials’Use of Print Coupons

use coupons from newspaper-delivered coupon books, similar to 79% of boomers

85%

34%

coupons82%

use coupons received in the mail, compared to 87% of all consumers

report an increase in mail coupon usage, significantly higher than gen X and boomer users

6

Base: total respondents


Affluent shoppers use

coupons Use any coupon

Use mail coupons

Use in-store paper coupons

Use coupons from newspaper coupon book

Find print coupons before shopping

Print and use coupons from computer

Only buy a product if there is a coupon

Use paperless discounts*(*Discounts I receive on my smartphone/mobile device and/or download onto my

store ID/loyalty card)

90% 90%

87% 88%

87% 87%

82% 84%

80% 81%

78% 78%

72% 76%

66% 70%

How Affluent Consumers Use Coupons

Contrary to some expectations, even affluent shoppers ($100K+

income households) want to be smart about their spending and

seek value for what they purchase.

An eMarketer article citing Experian Marketing Services research

noted that 56% of affluent consumers shop around to take

advantage of specials or bargains (vs. 54% of all consumers)

and 33% of affluent consumers (vs. 30% of all consumers)

are influenced by a coupon to shop a store they don’t typically

frequent.3 Scarborough Research also reports that affluent

household use of grocery coupons is similar to that of the

average household (55% of affluent households use grocery

coupons several times a month vs. 53% of all households).1

Our report supports those findings. Affluent shoppers likely as all consumers to use coupons and feel

that by saving money with coupons, they are doing something

good for their budgets. In addition to using coupons from print

sources, they are also using those received on their mobile phones

or downloaded onto a store loyalty card. Of special note for retailers:

nearly half of affluent shoppers feel that the money they save with

coupons allows them to buy more products at the store.

are just as

7

All consumers


Affluent consumers ($100K+)

FACT #2:


Smart, brand loyal shoppers use coupons

An evolving consumer path to purchase (where consumers

have constant access to product and sales information at

their fingertips) makes it more challenging to retain customer

loyalty for brands and retailers alike. Consumers are becoming

more savvy in how they spend their money and increasingly

incorporate coupon and discount searching and planning into

their purchasing process. Brand loyal consumers (those who

purchase regardless of price) are no exception –

91% of shoppers who classify themselves

The good news is coupons can positively change the

perception that brand loyal shoppers have about companies.

Forty-three percent of shoppers who classify themselves as

brand loyal say they feel better about companies that offer

coupons than those that do not. As a result, companies still

need to incent loyal customers with special offers or risk losing

them to other brands or retailers.

How Brand Loyalists Compare

Are just as likely to switch stores to take advantage of weekly specials

Are influenced to buy a brand they wouldn’t typically buy due to a coupon

Have increased shopping at other stores (than their main store) due to better advertised deals

Are influenced to try a new product due to a coupon

Have increased time spent for seeking, clipping, organizing and preparing coupons for each shopping trip

84%82%of Brand Loyal

Shoppersof all

consumersvs.

82%of all

consumersvs.

24%of all

consumersvs.

85%of all

consumersvs.

21%of all

consumersvs.

78%of Brand Loyal

Shoppers

24%of Brand Loyal

Shoppers

84%of Brand Loyal

Shoppers

28%of Brand Loyal

Shoppers

as brand loyal use coupons.

8


FACT #3:


Coupons offer more than just

a discountProsper Insights and Analytics research shows that coupons

are consistently the most influential media for grocery

purchases (60%), with in-store promotion second at 41%.4

Our report findings highlight and expand upon the influence

of coupons – not only do they provide incentive to purchase,

but they influence earlier on in the consumer’s buying decision

process. Shoppers have many tools when it comes to planning

and making their purchases, with consumers across all

generations increasing the use of smartphones to develop a

shopping list. The majority of shoppers use coupons to plan

shopping trips and decide where to shop.


FACT #4:

say that couponsinfluence where

they shop

use coupons to plan their shopping list

have increased shopping at

stores because they accept paperless coupons

select their stores based

on where they can use

paper coupons

How Coupons Influence Shoppers

9

86% 77% 38% 20%


37%

53%

Retailer websites

Coupon websites

Manufacturer/brand websites

Search engines

Links from savings sites/blogs

Social networking websites

57%

Websites Used to Search for Coupons, overall

49%

53%

Shoppers are increasingly reliant on their

digital devices to assist in the shopping

process and seek out coupons from a diverse

set of sites. Though online behavior is growing

among all segments, millennials lead the way

in using digital devices to plan and carry out

purchase decisions.

Consumers seek out coupons from a wide array of digital channels. Of the websites that consumers use

to search for coupons, there is no one type of site that clearly stands out from the rest. There appears to

be some generational preference, but across the board, retailer websites, coupon websites, manufacturer

websites and search engines are capturing a nearly-equal amount of the coupon seeker’s attention.

of millennials

44%

29% of consumers have increasingly gone to the Internet to find coupons

*Discounts received on their mobile phone and/or downloaded onto a store ID/loyalty card

Digital Coupon

Use

Generational BreakoutWebsites Used to Search for Coupons

Millennials

Gen X

Boomers

Retailer websites 69% 61% 44%

Coupon websites 66% 59% 39%

Manufacturer/brand websites 66% 58% 40%

Search engines 67% 55% 31%

Links from savings sites/blogs 61% 49% 28%

Social networking websites 63% 39% 17%

10

Savvy shoppers rely on a mix of print and digital coupons

41%

of millennials27% of consumers have increasingly

used paperless discounts* 40%

of millennials25% of consumers have increasingly

printed coupons from their computer 35%



The facts show the importance of an integrated coupon strategy as consumers

seek and use coupons from a combination of print and digital sources. Consider

millennials, who lead in the use of paperless discounts, yet also reported the largest

increase in use of paper coupons from the mail and newspaper-delivered coupon

books among the generations. Clearly, these savvy shoppers understand that the

best deals come from a variety of print and digital sources.

Consumers continue to use all types of coupons as they want the best value for

what they purchase. An astute marketer should develop plans that include both print

and digital distribution to capture a broad range of coupon savings preferences,

maximize consumer reach and ultimately, activate purchase.

Findings in this 2K16 Valassis Coupon Intelligence Report provide a reality check,

emphasizing that consumers’ zeal for saving money continues. Coupons remain a

powerful marketing tool.

Integrated Media Approach Maximizes Consumer Reach5

59% Overall

Coupon Usage

Print (mail, magazines, Sunday & weekday newspaper)

35% Overall

Coupon Usage

Digital Media (email, text, QR code, Internet sites/apps)

28% Overall

Coupon Usage

Loyalty Cards

71% of consumers use any of these media to save money

11

Scarborough data provides further proof that an integrated coupon strategy is required.


2K16 Valassis Coupon Intelligence Report “Savvy Shoppers Provide Reality Check”

The study was fielded in the third quarter of 2015 in conjunction with Ipsos, a

market research firm with proficiency in Internet surveys. The sample was derived

from an online consumer opinion panel, and all participants were at least 18 years

of age and living in the contiguous United States. Consumers were emailed an

invitation to participate in the survey and were given three days to complete it.

The survey was closed once 1,000 completed responses had been reached.

The responses were weighted by factors obtained from national census data to

provide appropriate representations of demographic groups at summary levels.

STUDY:ABOUT THE

US:ABOUTValassis is a leader in intelligent media delivery, providing over 58,000 clients

with innovative media solutions to influence consumers wherever they

plan, shop, buy and share. By integrating online and offline data combined

with powerful insights, Valassis precisely targets its clients’ most valuable

shoppers, offering unparalleled reach and scale. NCH Marketing Services,

Inc. and Clipper Magazine are Valassis subsidiaries, and RedPlum® is its

consumer brand. Its signature Have You Seen Me?® program delivers hope

to missing children and their families. Valassis is a wholly owned subsidiary

of Harland Clarke Holdings Corp.

Sources: 1 Scarborough Multi-Market 2012 – 2015, Release 2 (includes coupons for all product categories, not just CPG); 2 2016 NCH Marketing Services, Inc. a Valassis company, Full-Year 2015; 3 eMarketer, “How Frugal Are Affluent Affluents?” August 2015 article citing Experian Marketing Services, National Consumer Study, June 19, 2015 research; 4 Prosper Insights & Analytics MBI Survey, 2016; 5 Scarborough Multi-Market 2015, Release 2 12

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