1. CPG Coupons: The Consumer Perspective Association of Coupon Professionals April 16, 2015
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2. Agenda Headlines Data Sources The Coupon Media Landscape
FSI Coupon Insights
Digital Coupon Insights
The Millennial Coupon User
Key Conclusions and Implications
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3. Headlines Coupon users are CPG’s most important consumers*
Despite declines in newspaper circulation, consumers are still committed to using FSI coupons**
Millennials are not heavy CPG coupon users and are not as digitally focused for coupon usage as many marketers think**
*Based on GfK analysis of average spend on CPG products by coupon and non-coupon users, 2014; ** Based on Coupon Attitude and Usage Study, ECI, 2014
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4. Data Sources
All research information is consumer packaged goods coupon focused
National CPG Coupon Attitude and Usage Study; conducted in April, 2014 among 860 CPG Coupon users (defined as using 2 or more CPG coupons in the past 30 days)
GfK’s National Shopper Lab Frequent Shopper card analysis; analyzed over 180,000 FSI-redeeming households and compared to non-coupon using households – July, 2014
Coupon distribution and redemption by vehicle data from 2014
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5. Consumer Coupon Media Landscape
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6. Share of Past 30-Day CPG Coupon Usage
70% of CPG coupon users use FSI
59% of CPG coupon users use Digital
30% use FSI coupons, but not digital, and 19% use Digital and not FSI
By using both, you can reach 89% of all coupon users
Source: News America Marketing Coupon Attitude and Usage Study, April, 2014; research fielded by Evaluative Criteria Incorporated based on 859 past 30 day users of CPG coupons (2 or more) recruited using nationally representative internet panels
Base: Total Past 30 Day CPG Coupon Users (n=859) Q3) Even if you already mentioned it, which of the following sources of coupons have you used in the past 30 days?
Of the 11% that do not use FSI or digital, 3% use in-store, 4% use checkout coupons and 4% use retailer circulator coupons. Others include direct and magazine coupons.
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7. Four attitudinal segments identified
CPG Coupon User Segments: Incidence (1) & Key Differentiating Attitudes
Four attitudinal segments identified
Casual Coupon Users
Low coupon involvement
Prefer coupons downloaded to loyalty card
FSI Budget Constrained
Prefer FSI from paid newspaper
Need to use coupons in order to meet budget
28%
27%
Coupon Strategizers
Enjoy using coupons, worth the work, love the challenge to see how much can save, tight budget
Use both internet and paper coupons about equally
FSI Enthusiasts
Enjoy using paper coupons but financially not required to do so
Coupons provide knowledge about new products
25%
20%
Source: News America Marketing Coupon Attitude and Usage Study, April, 2014; research fielded by ECI based on 859 past 30 day users of CPG coupons (2 or more) recruited using nationally representative internet panels. Base: Total Past 30 Day CPG Coupon Users (n=859), (1) 775 of the 859 classified into a segment re-percentaged to = 100%.
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8. Average Annual Dollars per Household
FSI and Digital Coupon Users spend substantially more on CPG products than the average household
Average Annual Dollars per Household
$3,596
$3,013
$3,982
FSI Coupon Shoppers spend 19% more than the average shopper
Digital Print at Home
Shoppers spend 32% more
Than the average shopper
Source: GfK Shopper, July, 2014; FSI: Across 290 campaigns vs. GfK database | n=2,166,383 HH’s for all shoppers | n=184,799 FSI Coupon shoppers | 52 weeks ending 4/30/2014 Digital: Across 160 campaigns vs. GfK database | n=2,165,499 HH’s for all shoppers | n=63,155 Digital Coupon shoppers | 52 weeks ending 12/31/2013
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9. Percent of redemption volume
FSI Coupons account for 39% of all CPG Coupon Redemption; Digital coupons (PAH/D2C) account for about 5% of all redemptions
Internet print-at-home coupons ranked #7 in terms of volume redeemed, at 3.5%;
direct to card coupons ranked #9 accounted for 1.8% of all coupons redeemed
Percent of redemption volume
1Source: Inmar, 2015: only the top 9 distribution methods as rated by redemption are shown. The methods not shown account for % of all redemption
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10. CPG Coupon Clipping Decisions
Clip Coupons …
For brands already use
To Try New Items/ Brands
For new items by familiar brands
To try new brands that just came out
Those with higher coupon value amounts
To try existing brands/items never tried
Based on requests from others in household (e.g., spouse, kids, etc.)
That have long expiration dates
For special occasions / holiday / entertaining items
Coupons are clipped primarily for brands already use or to try a new brand or item
Coupons clipped for brands already used may tip the balance to the promoted brand when used by switcher consumers who have a consideration set of several brands in a category
Higher value coupons also take priority
Base: Total Past 30 Day CPG Coupon Users (n=859); Q.18 How do you decide which coupons to clip?
Source: News America Marketing Coupon Attitude and Usage Study, April, 2014; research fielded by ECI based
on 859 past 30 day users of CPG coupons (2 or more) recruited using nationally representative internet panels
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11. If a couponed product is out of stock, there can be lost sales opportunities to brands and retailers
Come back to the same store on another occasion to use coupon
Buy another brand
Go to another store
Not buy anything
Base: Total Past 30 Day CPG Coupon Users (n=859)
Q.35 If you have a coupon for a product but it is out of stock in the store, which of the following would you be most likely to do?
Source: News America Marketing Coupon Attitude and Usage Study, April, 2014; research fielded by ECI based on 859 past 30 day users of CPG coupons (2 or more) recruited using nationally representative internet panels
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12. FSI Consumer Behavior: Fast Facts
96% of FSI readers read most or all of the FSI
59% of FSI readers read the booklet at least 2 times
67% of FSI readers read the booklet the same day they receive it
61% of FSI readers clip the coupons immediately
1.8 adults on average read each FSI booklet
Source: News America Marketing Coupon Attitude and Usage Study, April, 2014; research fielded by ECI based on 859 past 30 day users of CPG coupons (2 or more) recruited using nationally representative internet panels; results for the 602 respondents who use the FSI
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13. Ways Used Online CPG Coupons
Base: Past 30 Day Internet/Mobile Coupon Users Mentioning A Source (n=461)
Q.23a: How have you used coupons online or from your mobile phone in the past 30 days?
Q.23b: And which one is the main way you have used coupons online or from your mobile phone?
Ways Used Online CPG Coupons
Download to
store's frequent
shopper card to use
Access on mobile phone
to scan when
check out
Main Way Used
Total Ways Used In Past 30 Days
Print out on paper to use
Download to store's frequent shopper card to use
Access on mobile phone to scan when check out
Print out on paper to use
Print to paper is the leading way Internet coupons are used.
Downloading to shopper card follows
Source: News America Marketing Coupon Attitude and Usage Study, April, 2014; research fielded by ECI based on 859 past 30 day users of CPG coupons (2 or more) recruited using nationally representative internet panels
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14. Consumers use Many Different Types of Websites to get CPG Coupons
Q.22b: Which of these sources have you used to obtain coupons online or from your mobile phone in the past 30 days?
Consumers use Many Different Types of Websites to get CPG Coupons
Dedicated coupon websites have the highest usage of Internet coupon sources. Coupons from retailer websites follow.
Note that traffic to individual sites within each type is probably much lower than the type total
Total
Users
Base: Aware of Internet/Mobile or Cell Phone CPG Coupon Sources
(676) %
Internet / Mobile Coupon Source
Past 30 Days Usage
Any (net) 81
Websites (subnet) 73
Dedicated to coupons 47
Retailer website 42
Company's or brand's website 35
Social media website (e.g., Facebook) 16
Newspaper website 9
ed to you
None of these 19
Mean
2.4
Source: News America Marketing Coupon Attitude and Usage Study, April, 2014; research fielded by ECI based on 859 past 30 day users of CPG coupons (2 or more) recruited using nationally representative internet panels
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15. Provides Product Information
Q.7: Since you use both coupons found in the newspaper as well as coupons found online, please tell us how the following statements describe your experience with both newspaper and internet coupons.
Newspaper Delivered Coupons are Rated Better by Dual Users on Convenience and Providing Information
Users of both Newspaper and Internet coupons favor Newspaper coupons for the following:
Source I trust
Use regularly
Easy to use
Provides Product Information
Source: News America Marketing Coupon Attitude and Usage Study, April, 2014; research fielded by ECI based on 859 past 30 day users of CPG coupons (2 or more) recruited using nationally representative internet panels
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16. Heavy FSI Coupon Users are Bigger CPG Spenders than Heavy Digital Coupon Users
FSI: Across 290 campaigns vs. GfK database | n=2,166,383 HH’s for all shoppers | n=184,799 FSI Coupon shoppers | 52 weeks ending 4/30/2014
Digital: Across 160 campaigns vs. GfK database | n=2,165,499 HH’s for all shoppers | n=63,155 Digital Coupon shoppers | 52 weeks ending 12/31/2013
FSI:
Digital:
FSI:
Digital:
FSI:
Digital:
36%
60%
48%
Spends Over
Spends Over
35%
$3.5k
$3.0k
More Trips are Made
Than The Average Shopper
More Dollars Spent Per Trip Than The Average Shopper
More Than The
Average Shopper
FSI: 89 Trips or 1.7 Trips/Week
Digital: 90 Trips or 1.7 Trips/Week
All: 66 Trips or 1.3 Trips/Week
FSI: $72.77 per Trip
Digital: $67.06 per Trip
All: $45.37 per Trip
FSI: $6,488 per Year
Digital: $6,008 per Year
All: $3,013 per Year
Source: News America Marketing Heavy Coupon User Analysis , July 2014; research fielded by GFK based on 290 FSI Campaigns and 160 Digital Campaigns GFK’s Frequent Shopper Card Database of HH who used more than 90 coupons of any type in a year
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17. Millennials
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18. Millennials are Lighter Users of CPG Coupons
Source: News America Marketing Coupon Attitude and Usage Study, April, 2014; research fielded by ECI based on 859 past 30 day users of CPG coupons (2 or more) recruited using nationally representative internet panels. Note: The survey sample was demographically representative of the U.S. population.  However, survey completion rates may vary by demographic group. All indices are based on Total US (Census). Base: Used 2+ CPG coupons in Past 30 days, (n=859) indexed to Total Census
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19. Share of Past 30-Day CPG Coupon Usage Mix: Millennials
Base: Total Past 30 Day CPG Coupon Users (n=182)
Q3. Even if you already mentioned it, which of the following sources of coupons have you used in the past 30 days?
Share of Past 30-Day CPG Coupon Usage Mix: Millennials
63% of Millennial CPG coupon users use FSI
66% of Millennial CPG coupon users use Digital
22% use FSI coupons, but not digital, and 25% use Digital and not FSI
By using both, you can reach 88% of all coupon users
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20. News America Marketing Perspective: Key Conclusions and Implications
Coupon users are important CPG consumers
Continue to include couponing as a key tool within the marketing mix
Consumers use coupons from a variety of sources, but the FSI remains an important source of coupons
Use a diverse mix of coupon delivery media with FSI and digital coupons as components
Millennials are lighter coupon users and are not as heavily digital as perceived by some marketers
Include coupon vehicles to reach Millennials, including FSI and digital; make sure to reach other important demographics as part of a brand’s promotion strategy
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