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Digital Coupon Panel April 16, 2015 Digital Coupons: Revolution or Evolution?

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Presentation on theme: "Digital Coupon Panel April 16, 2015 Digital Coupons: Revolution or Evolution?"— Presentation transcript:

1 Digital Coupon Panel April 16, 2015 Digital Coupons: Revolution or Evolution?

2 YOUR MODERATOR: MARK HECKMAN, PRINCIPAL OF MARK HECKMAN RETAIL CONSULTING Over 30 years of supermarket retailing experience as VP of Marketing at Marsh, Randalls-Tom Thumb and Food Industry Service Providers such as VRMS, Sorensen Research, and MARC Advertising

3 Our Panel this Morning Franklyn Farace, Vice President of Retail Sales, Ajay Amlani, General Manager and Executive Vice President, Founder, YouTechnology Dave Helms, President of FamilyTime, LLC Frank Careccia, VP of Engineering and CTO, Cellfire-Catalina Brian Wiegand, Senior Vice President, Digital, Inmar

4 Our Panel’s Agenda This Morning Conclude with Q & A from the Audience Discuss Topical Elements and Issues Effecting the Growth and Efficacy of Digital Coupons with our Expert Panel Definition of Common Terms Quick Review of the Past Performance of Digital Coupons

5 Digital Progress is Everywhere

6 But So Are Traditional Coupons

7 Let’s Define Some Terms Print at Home Digital FSI, (NET): – Coupons delivered digitally to the consumer on website for selection, but are printed on home printers to bring to store. Load to Card, Save2Card, Load to Account, Direct to Card, eWallet, eCoupon: (EDO) Combination of Paper and Digital (DEP) Clips: A digital coupon that is either loaded to card or printed at home DEP (Dual Electronic and Paper) EC (Electronic Checkout) EDO (Electronic Discount Opt-In /Load2Card) FSI (Free-Standing Insert) HO (Handout) IR (Instant Redeemable) NET (Internet Printable / Print at Home) SP (Shelf Pad)

8 Digital Coupons Landscape today* (updated) –Approximately 37,000 retailer locations are enabled for EDO (L2C) –EDO: Share of total industry distribution-.3% EDO: Growing share of industry redemption – 1.8% –(up from 0.9% in 2013) –NET: Share of total industry distribution-.3% NET: Share of industry redemption- 3.5% –DEP (either NET or L2C): Share of total industry distribution- 1.4% DEP: Share of industry redemption- 3.5% –Total Group Distribution: Nearly 2% –Total Group Redemption 8.8% (Both up dramatically YOY) *Source: 2014 Inmar Coupon Trend Study and Catalina Marketing

9 Today’s Panel Franklyn Farace Vice President of Retail Sales

10 Ajay Amlani, General Manager and Executive Vice President, Founder

11 Today’s Panel David Helms, President of FamilyTime, LLC.

12 Today’s Panel Frank Careccia, VP of Engineering and CTO

13 Today’s Panel Brian Wiegand, Senior Vice President Digital

14 Today’s Discussion For the Brands and Retailers the advantage of Digital Coupons depends heavily upon enabling an accelerated and efficient process of distribution, targeting, clearing, with rapid access to analytics. On the consumer side, Digital Coupons offer shoppers a variety of new and easy ways to save without having to clip, store, sort through and handle paper coupons. Finally, Digital Coupons must be abundant, represent meaningful value, and relevance for the shopper to engage. Stakeholder ROI and Reportage Abundant and Relevant Brand Offers and Content Consumer- Friendly Technical Access Sweet Spot Honing In on the Digital Coupon Sweet Spot

15 Topic One Retail and Brand Stakeholders: The promise of digital couponing for both retailers and brands was the ability to flexibly build digital promotions at much lower costs than traditional paper communicated deals. In addition, access to analytics for both retailer and brand was to enable quick evaluation of results so that promotions could be refined while being executed. Are we enjoying those promised benefits?..... If not, what can we do to enhance the retailer and brand proposition?

16 Topic Two Consumer Ergonomics : The use of Digital Coupons is growing, albeit from a very small base. Even with the rapid adaptation of smart phones, shopping apps, and other digital shopping aides, (EDO) coupons remain less than two percent of coupons redeemed. What can be done to increase consumer adaptation of EDO coupons? Digital Coupons

17 Topic Three Abundant, Relevant Content: Consumer behavioral data tells us that despite having access to 50,000-100,000 sku’s in their stores, shoppers tend to focus on several hundred items and mostly those with high house hold category penetration. What is the long and short term prognosis for offering sufficient high value, targeted offers and content on items shoppers frequently buy? and ……. How important is the improvement/expansion of content to the growth of digital coupons?

18 Closing Thoughts What are top three elements/factors related to Digital Coupons you believe the industry should focus on in 2015?

19 Questions from the Audience

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