Digital Coupon Redeemer: Exposed

© GfK 2012 | LEAD Marketing Conference | October 2012 1

Digital Coupon Redeemer:

Exposed

Neal Heffernan

SVP – Shopper & Retail Strategy


Agenda

● Current Coupon Trends

● Purchase Profile of Digital Coupon Redeemer

● Categories in Highest Demand

● Coupon Performance Benchmarks


Coupons are Genius!


Source: Inmar

Coupon Redemption Growth Curve


Source: Inmar

Internet Coupon Redemption Up 76%


The Impact of Digital Promotions?

By 2014, $44 billion will be spent in the U.S. on

creating direct relationships between advertisers

and shoppers via the interactive channel.

*Forrester Research & ComScore


● Selected 150 campaigns which ran a Digital

Coupon on Coupons.com

● Looked at the last 52 weeks of data through

August 2011

● Represented the following major categories

(49 sub categories): o Food

o Beverage

o Personal Care/Baby Care

o Household care

o Heath Care

o Pet Care

● Looked at 2,343,699 unique households –

Flagged 205,142 as Digital Coupon redeemers

Digital Coupon Redeemer: Exposed

Background


Data Source: The National Shopper Lab

● Data is collected from retailer frequent shopper programs, demographically representative of Total U.S.

● Weekly transaction-level purchase data

o 23+ million frequent shoppers – 2.3 million

frequent shoppers (static)

o By UPC, Store

o With price and coupon redemption (by day if

required for promotion evaluations)

o The whole coupon is captured (first 5 digits are

Manufacturer Code; the next 3 are “family” and

the last 2 are “value”). Care has been taken to

ensure that the code was unique to the time

period analyzed, avoiding any “miscoding” of

redemption volume from another, similar offer.

● 3 year rolling purchase history

Digital Coupon Redeemer: Exposed


How Do Digital Coupon

Shoppers…Shop?

Well, They Buy a Helluva Lot!


22% More Trips Are Made By Digital Coupon Shoppers Than The Average Shopper

All Shoppers Digital Coupon Shoppers

Average Annual # of Trips

57 Trips or

1.09 Trips/Week

69 Trips or

1.3 Trips/Week

Across 150 campaigns vs. GfK database | n=2,343,699 HH’s for all shoppers | n=205,142 Digital Coupon shoppers | 52 weeks ending 8/27/11

Digital Coupon Shoppers Make a lot of Trips!


23% More Dollars Are Spent By Digital Coupon Shoppers Than The Average Shopper


Average Dollars per Trip

Digital Coupon Shoppers Spend More $$s

$44.87

$55.05




Average Annual Dollars per Household

Annual Spend is Significantly Larger!

$2,545

$3,803

50% More Than The Average Shopper

Digital Coupon Shoppers Spend Almost



Heavy Digital Coupon Shopper Snapshot


$5,466 Per Year


A Closer Look at Stock Up Trips


Trip Mission

Among the Stock Up Trips >$75.00

12.6

18.6

27.2

All Shoppers Digital Coupon Shoppers Heavy Digital Coupon Shoppers

Stock Up Trips - Basket > $75.00 Avg. Trips per HH

48% More Stock Up Trips

116% More Stock Up Trips



Trip Mission

Among the Stock Up Trips >$75.00

1.4

3.6

5.4

All Shoppers Digital Coupon Shoppers Heavy Digital Coupon Shoppers

Stock Up Trips - Basket > $75.00 Avg. # of Coupons per Trip

157% More Coupons

Redeemed

286% More Coupons

Redeemed



Who are Digital Coupon Shoppers?

They are Not Poor People!


Rank # 1

Jumbo Families – 6.5% of the US – Redeemer Index = 131

The Digital Coupon Redeemer

PersonicX clusters – Acxiom Corporation

Net

Worth <250k

40 Mean Age

34% Bachelor’s Degree

88% Income between

$50-100k

27% 5+HH 76%


Rank # 2

Fortunes & Families – 6.14% of the US – Redeemer Index = 116


Net Worth

>1MM 46%

47.7 Mean Age


24% Graduate Degree

97% Higher Internet Buying

Channel Preference

vs. National

96.9% 3+HH

100% HH with Kids

67.9% Income above

$125k



Rank # 3

Golden Years – 6.01% of the US – Redeemer Index = 113


Net Worth

$500k-$2MM 76%

63.6 Mean Age


73% Income between

$50k-125k

23% Higher Internet Buying

Channel Preference

vs. National

56% 1-2 Person

HH

23% Graduate Degree



Rank # 4

Transition Times – 2.69% of the US – Redeemer Index = 106


Married

87.3%

36.6 Mean Age

49% Income between

$30k-50k

93% of HHs with

No Children

64% High School Graduate Only

27% Bachelor’s Degree+

50% 2 Person

HH



Rank # 5

Flush Families – 6.98% of the US – Redeemer Index = 105


Married 49.7%

48.1 Mean Age


94% Income between

$50-100k

23.6% 5+ Person

HH



Digital Coupon Shoppers

Category Development Index

193

167

151 141 139

183 182 171

151 143

Granola Bars Salad Dressing Frozen

Dinners/Entrees

Popcorn Candy Bars Facial Tissue Razors/Blades Fabric Softener Diapers Deodorants

Food Categories Non-Food Categories


Industry Coupon

Benchmark Norms


Coupon Performance Profiler Evaluate • Benchmark • Improve

N = 2,200+ Individual Coupon Events

© GfK 2012 | LEAD Marketing Conference | October 2012 27 27

Coupon Performance Benchmarks by Coupon Type

All Coupons – Food & Non-Food

Powered by GfK’s Coupon Prophet Results Database


● Digital coupons should play a significant role in your go forward

coupon strategy.

● Digital coupons do an excellent job attracting new buyers and

driving incremental volume for brands.

● Digital coupon redeemers have a lot of buying power.

● Coupons are not just for Poor people

Key Takeaways


THANK YOU!

Neal Heffernan SVP / Behavioral Research

GfK Shopper & Retail Strategy

[email protected]

T 513.559.3922

www.gfk.com

Digital Coupon Redeemer: Exposed

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