The Consumer Need for the Big Deals Local App

Produced for Instant Access Technologies by

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ContentsExecutive Summary 3

The consumer response to the bigDL app – in general 4

The consumer response to the bigDL app – by feature 6

Conclusions 8

Produced for Instant Access Technologies

By

Niki Gomez, Head of Insights and Sean Murray, Founder and Director

The Retail Practice www.theretailpractice.com

January 2014

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Executive SummaryWe surveyed a broad section of approximately 100 smartphone users.There was overwhelming support for a deals-based app that understands the consumer.

97% of people said they would download a free app with the best high street deals and money-off vouchers.Consumers favoured an app that can be sorted by the type of deal, the consumer’s ‘sweet spot’ (their preferences) and their location.The bigDL app is seen as a quick and effective solution to the arduous task of finding deals, which typically takes consumers a lot of time and effort. 78% would use the app on shopping days or every day.

There is currently a lack of information on high street deals. The only ways consumers can currently find out about high street deals is through physically going into stores or reading magazines or leaflets put through their door. 83% of consumers said they would like targeted deals Consumers were happy to give their data for targeted deals that are more relevant to them.

Consumers saw the local feature of bigDL as being special and a differentiating factor to other offers. 75% of consumers liked the idea of real time geo-alerts on deals from retailers

To many consumers it is important that independent shops as well as large retailers are represented.40% of consumers said they’d share a deal on social media. This rose to 53% if they got epoints (loyalty points) as well.

“I love that it supports indies like my local bookshop as well as bigger high street chains which are often cheaper.” – Female young professional, 38, London

“This app is really cool – I like the Twitter-style deal feed. Easy to use design.” – Male student, 21, London

97% 78%

83%

75%

40%

of people would download a free app with the best high street deals and money-off vouchers

would use the app on shopping days or every day

would like targeted deals

liked the idea of real time geo-alerts on deals from retailers

said they’d share a deal on social media

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99% of consumers said that saving money on purchases was an extremely important consideration. This was due to unreliable work situations as a result of the recession, their choice of occupation, such as being students or in creative or social fields, and the high cost of living in the UK. Consumers also wanted to maximise their purchases of a wide variety of goods and services on offer. Lower prices allow them to do that. A staggering 97% of people said they would download a free app with the best high street deals and money-off vouchers.

Findings1. Finding good deals was very important to consumers. Many consumers would not purchase goods if they were not on some kind of offer and some simply cannot afford to ever impulse buy. 78% would use the bigDL app on shopping days or every single day.

Response to the bigDL app – in general

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Every few hours

Once a day

On shopping days

Twice a week

Once a week

Only when alerted

If you download this bigDL app, how often during a given week would you check the updated deals on offer?

“Yeah, I’d be happy to share some details for better custom deals.”

99%said saving money on purchases is an important consideration

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2. Most consumers we spoke to do a lot of research before making a purchase. The bigDL app is seen as a quick and effective solution to the arduous task of finding deals, which typically takes a lot of time and effort. The bigDL app is “practical, easy to wrap your head around, straightforward.” When consumers are on the high street they sometimes run between different shops to get the best price, or they pay a higher price, as a result of an impulse buy. So the app would be a welcome solution. It would also mean they would shop more in their local high street. Currently, many shop online because they feel it is cheaper.

3. Customers are happy to provide their data in return for benefits.The majority of customers were keen to have personalised deals for them, based on data that either they inputted themselves or that the app learnt from their behaviour. They were willing to spend the time to give relevant data if this meant they had more targeted results.

4. There is currently a lack of information on high street deals. The only ways consumers currently find out about high street deals is through physically going into stores, reading magazines or leaflets put through their door.

5. Consumers saw the local feature of bigDL as being special and a differentiating factor to other offers. “The fact that it’s local makes me really like this app”. 97% of consumers believed in supporting their local high street.84% said they preferred shopping within 30 minutes of their homes.

6. To many consumers it was important that independent shops as well as large retailers were represented.The Internet has also meant that the majority of consumers are always looking for information on deals online for higher priced items. The main methods they were using were doing a general Google search for items they wanted to buy or getting and using voucher codes at the e-checkout. Some used other deal sites, and very few have used apps for deals thus far.

“I always presume the high street is more expensive than online. And I have to actually go there to see the deals. This app could be really useful!”

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What is your preferred local shopping area, relative to where you live?

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0Within a radius of: 20 mins travel 30 mins travel 45 mins travel 60 mins travel

84%preferred shopping within 30 minutes of their homes

“The fact that it’s local makes me really like this app.”

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Customers were happy to provide their data in return for benefits83% of consumers said they would like targeted deals.

bigDL - real deals, real time, real close“I like the tag line of the app: Real Deals makes me think these are proper deals I can trust”.There was a strong feeling that sometimes companies attract you through advertising deals but actually do not save you money. Consumers were very savvy about deals and so the deals on offer through the app must be good.

Response to the bigDL app – by feature

Deal TypesThe most popular deal type is money-off vouchers, preferred by 55% of consumers, followed by daily deeply discounted deals (31%) and weekly deeply discounted deals (28%).

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Weekly discount

dealsDaily deeply

discounted deals

Free money-off

vouchers

Buy one get one

free deals

Seasonal sales

‘Secret’ deeply

discounted deals you

find out about when

you enter the shop

Which deal types would you like best?

“This could really help me to save time finding deals as I can set it to exactly what I’m looking for. This week it might be winter boots, next week my mum’s birthday pressie and then a holiday with my mates.” – Female young professional, 25, London

“The way you can set different locations and look for deals that way is very useful. Especially for us students who split our time between being at home with our family and at uni with our friends.” – Female student, 19, Reading

83%would provide their data for targeted deals

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Exclusivity76% of consumers said they would find exclusive deals, for bigDL members only, an attractive offer.

Geo-alerts 75% of consumers liked the real time geo-alerts on deals from retailers they could receive on their phones when within 25m of a shop. They saw it as a really outstanding feature that they would use when they were on the high street and in “shopping mode”.

Sharing40% of consumers would share a special deal with their friends on social media.Consumers would be more likely to share deals they find out about generally (not necessarily through the app) if they received an incentive, such as epoints for doing so. This figure then went up to 53%.

Price ComparisonThe price comparison tool was always met by a state of awe and amazement in the focus groups. Most consumers had not seen anything like it before. 84% of consumers would use the price comparison tool occasionally or regularly.

“Oh wow, the price comparison tool is awesome – I would so use that!” – Female young professional, 24, London

“I use the price comparer from eBay but that’s just for those sellers, as this is for all online shops it’s much better!” – Male young professional, 27, London.

84%would use the price comparison tool occasionally or regularly

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A deals-based app that saves consumers money on the high street was met with extremely high positivism, with 97% of consumers saying they would download it.The app would reduce the time and effort that is currently spent on finding deals.What emerged as important is that:

for them – and are willing to give their data to get this.

attractive to them.Consumers would use the app regularly, on days when they are shopping. The bigDL app would solve the information problem of high street stores and offer additional attractive features, which will save consumers time and money.

Conclusions

“We haven’t seen an app so welcomed by consumers before.” – Sean Murray, The Retail Practice

97%of consumers said they would download the app