Following the economic downturn shoppers continue to try and find ways to save money where they can. This is re-fuelling the popularity of vouchers and coupons that now come in many forms. This report provides an understanding of what digital coupons and vouchers are, how they can be distributed and how shoppers use them. We identify how often shoppers redeem coupons and vouchers, whether they actively look for them and what kind of coupons or vouchers shoppers look for online.
We explain how technology is affecting coupons and vouchers and how shoppers use it for finding coupons and vouchers and how technology is used for redemption. We also identify current smartphone penetration among primary food and grocery shoppers. We cover areas such as push and pull with smartphone vouchers, whether and how shoppers want offers sent to their smartphones. We also explore shopper perceptions on giving out personal information in order to get relevant offers and who shoppers would trust with their information. The report gives a detailed overview of smartphone coupons and vouchers, what possibilities they offer and whether shoppers want smartphone vouchers or offers by email.
This report will:
-Define digital coupons and vouchers are
-Provide the latest view on how digital coupons and vouchers can be distributed and also how they are used in different countries.
-Identify how shoppers use vouchers and coupons and how they find them.
-Provide an overview of how new technology is affecting coupons and vouchers and how shoppers use it for finding coupons and vouchers and how it’s used for redemption.
-Identify the smartphone penetration of UK shoppers and what activities smartphones are used for.
-Highlight issues and concerns with digital coupons and vouchers and redeeming them.
-Consider the concept of push and pull and which method do shoppers prefer in relation to receiving offers to a smartphone.
-Give a detailed overview of smartphone coupons and vouchers, what possibilities they offer and whether shoppers want smartphone vouchers or offers by email.
-Explain who shoppers would trust with enough personal information in order to receive offers that are relevant to them.
Shopper missions: The heart of any successful shopper strategy
Digital Vouchers 2012
1. Evolution Insights: Shopper Insight Series
Digital Vouchers and Coupons
in the UK Food & Grocery
Market 2012
Evolution Insights Ltd
Prospect House
32 Sovereign Street
Leeds
LS1 4BJ
Tel: 0113 389 1038
http://www.evolution-insights.com
www.evolution-insights.com 1
2. About Evolution Insights
Evolution is a leading research consultancy specialising in shopper motivation and behaviour. We deliver off-the-shelf, tailored and bespoke research for
manufacturers, retailers and agencies.
Our research and analysis helps clients • Evolution offer a range of products & services for
develop targeted shopper marketing clients in the field of shopper research:-
initiatives designed to influence
• Off-the-shelf research
shoppers at the point of purchase.
– Evolution’s off the shelf research
publications deliver affordable insight into
shopper motivation and behaviours in UK
food, drink and grocery
• Insight Plus
– Insight Plus offers your business the
opportunity to engage in any of our regular
shopper research projects in advance of
We use a range of research publication, tailoring the scope to suit your
needs
methodologies to discover genuine
insights. Our research incorporates a • Bespoke Consulting
broad spectrum of robust qualitative
and quantitative research techniques. – As publishers of research, we are able to
draw upon a wealth of existing proprietary
data for consulting projects – helping to
better inform and shape any further
As a leading publisher of shopper research requirements.
research, we are ideally placed to
offer your business actionable
shopper insight.
Further information is available at our
website http://www.evolution-insights.com
www.evolution-insights.com 2
3. Contents
Key findings and executive summary 5 Location-Based Offers 33
Key Findings and Executive Summary – What This Report Will Do for You 6 Location-Based Coupons and Vouchers 34
Key Findings and Executive Summary – Use of Digital Vouchers 7 Digital Coupons: Methods of Delivery - Summary 35
Key Findings and Executive Summary – Technology and Digital Vouchers 8 Smartphone Coupons and Vouchers – Benefits, Disadvantages and 36
and Coupons Applications
Coupons and Vouchers – Definition and Drivers of Popularity 9 Smartphone Coupons and Vouchers – Benefits, Disadvantages and Applications: 37
Introduction
Coupons and Vouchers – Definition and Drivers of Popularity: 10 Digital Redemption of Smartphone Vouchers 38
Introduction
Defining Coupons 11 Smartphone Vouchers and Coupons - Benefits 39
Defining Vouchers 12 Smartphone Vouchers - Disadvantages and Issues 40
Vouchers and Coupons – a Type of Sales Promotion 13 Mobile Wallets 41
The Economic Downturn and Vouchers 14 Mobile Wallets in the UK 42
Coupons and Vouchers – Definition and Drivers of Popularity: Summary 15 Security Concerns with Digital Vouchers and Coupons 43
Digital Marketing – Coupons and Vouchers 16 Smartphone Coupons and Vouchers – Benefits, Disadvantages and Applications: 44
Summary
Digital Marketing – Coupons and Vouchers: Introduction 17 Voucher Sites and Printable Coupons 45
Digital Media and Digital Marketing: Definition 18 Voucher Sites and Printable Coupons - Introduction 46
Digital Shopper Marketing: Definition and Scope 19 Promotional Agencies and Coupon Distributors 47
Digital Shopper Marketing: Benefits 20 Voucher and Coupon Websites 48
Digital Shopper Marketing: Where Do Digital Vouchers Fit? 21 Awareness and Use of Voucher and Coupon Websites 49
Digital Vouchers and Coupons – Definition and Different Types 22 Proportion of Shoppers Actively Seeking out Different Types of Coupons and 50
Vouchers
Coupons Around the World – Asia and the United States 23 How Often do Shoppers Print Coupons or Vouchers out 51
Digital coupons: methods of delivery 24 Voucher Sites and Printable Coupons - Summary 52
Digital Coupons: Methods of Delivery - Introduction 25 Use of Coupons and Vouchers 53
Digital Coupons and Offers: Benefits 26 Use of Coupons and Vouchers - Introduction 54
Digital Coupons and Offers: Benefits (2) 27 Finding Vouchers and Coupons for Food and Grocery Items 55
Digital Coupons and Offers: Benefits (3) 28 Use of Food and Grocery Coupons 56
Digital Coupons: Methods of Delivery 29 Vouchers, Coupons and Codes – Frequency of Redemption and Barriers for it 57
Digital Coupons: Methods of Delivery (2) 30 Other Barriers for Coupon Redemption 58
Digital Coupons and Vouchers: Methods of Delivery (3) 31 Loyalty Cards and Discount Vouchers Currently Carried Around by the Shoppers 59
Digital Coupons and Vouchers: Methods of Delivery (4) 32 How Coupons / Vouchers are Used 60
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4. Contents
Price Matching Vouchers at Different Food and Grocery Retailers 61 Opting in to Relevant Offers to a PC (2) 88
Supermarkets’ Comparison Systems – Tesco Price Check Usage 62 The Shopper Perspective: Trust, Personalisation and Information Disclosure - 89
Summary
Supermarkets’ Comparison Systems – Asda Price Guarantee Usage 63 Methodology 90
Supermarkets’ Comparison Systems – Sainsbury’s Brand Match Usage 64 Methodology 91
Supermarkets’ Comparison Systems – Waitrose and Ocado Usage 65 Methodology: Quantitative Research - Survey 92
Use of Coupons and Vouchers - Summary 66 Methodology: Qualitative Research – Focus Groups 93
Technology as a Driver for Digital Coupons and Vouchers 67 Glossary 94
Technology as a Driver for Digital Coupons and Vouchers - Introduction 68 Glossary 95
Smartphone Penetration Among UK Primary Food and Grocery Shoppers 69 Contact Us 96
Ownership and Use of Mobile Phones 70
What are Shoppers Using Their Smartphones for 71
Tablets and Other Internet Enabled Mobile Devices 72
When do Shoppers Look for Vouchers Online 73
Technology as a Driver for Digital Coupons and Vouchers - Summary 74
Offers Sent to Smartphones: Push and Pull 75
Offers Sent to Smartphones: Push and Pull - Introduction 76
Push and Pull – Receiving Relevant Offers or Vouchers to a Smartphone 77
When do Shoppers with Smartphones Want Coupons / Vouchers Sent to 78
Their Smartphone
When do Smartphone Owners Want to Receive Offers to Their 79
Smartphone – Push and Pull
When do Smartphone Owners Want to Receive Offers to Their 80
Smartphone – Push and Pull (2)
Offers Sent to Smartphones: Push and Pull - Summary 81
The Shopper Perspective: Trust, Personalisation and Information 82
Disclosure
The Shopper Perspective: Trust, Personalisation and Information 83
Disclosure - Introduction
Trust vs. Tailored Offers 84
Opting in to Relevant Offers to Mobile Phone 85
Opting in to Relevant Offers to Mobile Phone (2) 86
Opting in to Relevant Offers to a PC 87
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5. Coupons and Vouchers – Definition and Drivers of Popularity: Introduction
Following the economic downturn
shoppers continue to try and find
ways to save money where they can.
This is re-fuelling the popularity of
vouchers and coupons that now come
in many forms.
In this chapter we attempt to explain
the difference between a coupon and
a voucher and explore how shoppers
perceive the difference.
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6. Defining Coupons
The industry says:
Coupons, as opposed to vouchers, are for FMCG
products, and have a one-off use limit, as they
represent hard cash. The brand/producer of the
coupon is at financial risk from uncontrolled
distribution and over-redemption.
Shoppers say:
The word coupon to me
I think a coupon is an
means something that you
A coupon I think is the old advertisement for a
cut out of a magazine
fashioned term, like product, like 50p off
something you’d get in a
magazine or newspaper
I don’t think
people really use
A coupon is for a specific the word coupon
item whereas a voucher can now
be spent on anything usually
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7. Defining Vouchers
The industry says:
Vouchers usually include offers such as 2 for 1: 2 for £10 or
50% off. Vouchers are issued by the retailer and redeemed
at that retailer only. Vouchers are self liquidating; the value
of the voucher is built into the retailer’s product margin.
Shoppers say: A voucher is something that
I think you have to buy gets sent to you through the
something to receive a post or something that you
voucher like on Groupon have collected points for. It’s
for example something that you get given
A voucher is money that
A voucher is actually
you go and spend, a
like cash, a coupon is
coupon you have to buy
just money off
something to get money off
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8. Digital Shopper Marketing: Where Do Digital Vouchers Fit?
Digital shopper marketing initiatives can be categorised in the same way as traditional shopper marketing initiatives. Digital
vouchers and coupons are therefore just one category of digital shopper marketing initiative.
Shopper marketing initiatives
• At the simplest level digital shopper marketing initiatives share the same
characteristics as traditional shopper marketing initiatives, and this aspect
Vouchers can be separated from the way in which the initiative is targeted at the
and shopper. Initiatives range from coupons, special offers and loyalty rewards
to enhanced product information, recipe suggestions and even initiatives
coupons that seek to improve the shoppers experience (for example by making
their grocery shopping easier).
Improving
Loyalty point • Digital coupons and offers are among the best established digital shopper
shopping
rewards marketing initiatives in the market that are widely available and largely
experience
accepted by shoppers. Delivered by e-mail, SMS, websites, smartphone
apps and digital kiosks in-store, digital coupons enable marketers to target
shoppers with highly personalised content, in turn influencing the
Shopper shopper’s decision making process.
marketing
initiatives • Also marketers may benefit from integration of digital coupons and
vouchers with other digital shopper marketing initiatives. For example,
with the advent of digital media it is possible to link redemption of digital
coupons with loyalty schemes, or even directly with digital shopping lists or
Product online baskets.
Competitions
information
Recipe
suggestions
Source: Evolution Insights
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9. Location-Based Coupons and Vouchers
In spite of the relevance and timeliness of location-based offers, currently only a small proportion (13.4%) of shoppers however say
they would like to receive them.
Only 13.4%
would like
location-
based offers
to their In spite of sharing your
mobile location with a coupon /
voucher provider not being a
great concern to primary food
and grocery shoppers (only
26.0% say it concerns them),
at the moment not many want
location-based coupons and
vouchers.
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10. Smartphone Vouchers - Disadvantages and Issues
There are still some issues regarding the digital redemption of vouchers and coupons.
Data security: Shoppers may still feel reluctant Know-how: Lack of knowledge of
to give their personal details or don’t feel like how to redeem digital vouchers
they benefit enough from the trade off. Signing
up with a voucher site or registration on a
retailer site may not seem worth the effort.
Technical issues: Problems
in scanning vouchers can
cause delays and frustration
Internet connection required: Network coverage issues are
possible when internet connection is required for
redemption of digital vouchers.
Awareness: Shoppers aren’t necessarily Technology: Approximately half of shoppers still
aware of vouchers being also digitally don’t have smartphones which means that using
redeemable even if they have the digital coupons alone isn’t profitable for a retailer.
technology, i.e. a smartphone required.
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11. Security Concerns with Digital Vouchers and Coupons
About half of food and grocery shoppers admit to having security concerns when it comes to sharing personal information with
coupon providers or making payments with mobile phones.
• Just over half (53.1%) of food and grocery
Concerns over: shoppers say the security of payments made with
a mobile phone concerns them. This, however
Security of may change as mobile phone payments,
especially ones using NFC (near field
mobile communications) technology, become more
common.
Sharing personal payments • Almost half of shoppers (48.3%) also mention
being concerned about sharing personal
information 53.1% information with a coupon provider even if meant
getting more relevant offers. Many coupon and
48.3% voucher providers require some personal
information such as email address a phone
number and sometimes even home address when
signing up with their service offering.
• Only approximately a quarter of shoppers are
concerned about sharing their location with a
coupon provider in order to get location-based
Sharing my offers. Location-based offers are becoming more
location 26.0% popular and popular providers are Foursquare
and Google Offers (in the United States).
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12. Voucher Sites and Printable Coupons - Introduction
With the increase in daily deal and
voucher websites finding vouchers or
coupons is no longer only a question of
cutting them out from a newspaper.
This chapter focuses on coupons and
vouchers in terms whether shoppers
actively look for coupons and vouchers
and whether they use different
websites for finding them.
We also find out what proportion of
shoppers actively look for food and
grocery coupons and what other kind
of coupons and vouchers primary food
and grocery shoppers look for and how
often they print coupons out.
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13. How Often do Shoppers Print Coupons or Vouchers out
Just under a half (49.7%) say they have printed out a coupon or voucher in the last month. However, over a fifth have never printed
one out.
When did you last print out a voucher or coupon?
25 23.2
21.4 21.1
20
15.2
15 14.0
10
5.1
5
0
Today or In the last In the last In the last 3 Less than 3 Never
yesterday week month months months
49.7% of shoppers say
they have printed out
a coupon / voucher in
the last month
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14. Loyalty Cards and Discount Vouchers Currently Carried Around by the Shoppers
Over a third (38.3%) of shoppers carry money off coupons or vouchers in their purse or wallet.
• About a fifth (20.1%) of shopper say they carry
Money off vouchers currently in your purse or wallet paper vouchers in their purse or wallet.
Money off coupons for grocery items 38.3 • Over a third of shoppers say they currently carry
money off coupons for food and groceries with
Coupons that accumulate more loyalty points than them.
normally
18.6
• Loyalty card scheme related coupons that
Money off vouchers for other retailers in-store (not
8.4 accumulate extra points were carried with them
food and groceries)
by almost a fifth (18.6%) of shoppers.
Restaurant discount vouchers 6.5
Money off vouchers
Discount coupons or vouchers for any other service
currently in your
provider
4.0 wallet
0 5 10 15 20 25 30 35 40 45
14
15. Supermarkets’ Comparison Systems – Waitrose and Ocado Usage
Waitrose Ocado
Less than half of all primary shoppers are aware of either Waitrose or Ocado’s Brand Price Match systems.
Only a tiny percentage of shoppers actually trust these Brand Match promises. More advertising needs to
be done to raise awareness and create trust for these systems.
n=1007
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16. Push and Pull – Receiving Relevant Offers or Vouchers to a Smartphone
Do shoppers want offers pushed on them or only when requested?
Push refers to
Pull refers to shoppers
information, in this case
requesting something, in
offers to
this case offers delivered
smartphone, being
to their
delivered without
smartphone, through a
request toward the
marketing channel.
shopper.
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18. Methodology
• Evolution carried out a preliminary survey of around
Evolution’s methodology 100 shoppers to test questions for the main survey.
• Detailed secondary and desk research is conducted to
define the topic area, macro drivers and trends, scope
Secondary and desk Preliminary
and examples within the research topic.
research quantitative survey
• Initial insights gained are used to help further design
the main survey.
• A main survey is completed by at least 1,000 UK adults
who are the primary household shopper for food &
grocery.
Focus groups
Main quantitative • Focus groups are carried out to further enhance the
survey secondary research and main quantitative survey.
• Comprehensive and detailed assessment of all the data
received was then used to uncover insights.
• Throughout this process, primary research was
supported by secondary research drawing on
Evolution’s proprietary databases, national
statistics, news and industry resources.
Insights
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19. Methodology: Quantitative Research - Survey
Topics of questions in quantitative survey
Demographic profiling • Detailed shopper insights were gained
from a survey of 1,065 primary
Preferred retailer offline shoppers. The samples were fully
representative of the UK population.
Ownership and usage of technology • The survey contained 20 questions
relating to topics outlined to the left –
Brand loyalty vs. coupons / vouchers in addition to standard demographic
profiling questions
Voucher redemption and barriers to it
• The questions were designed to give
maximum insight into shopper’s
Technology and data security concerns motivation and behaviour
• Additional questions were asked to
Awareness of voucher and coupon websites give further insights into general
behaviour and attitudes into price
How vouchers are used and opting in to offers comparisons.
• The survey was carried out during the
Printable coupons / vouchers
week commencing 18th June 2012.
Trust and giving out personal information
Types of vouchers / coupons shoppers actively look for
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20. Methodology: Qualitative Research – Focus Groups
List of focus group participants
Focus Group Participants • 2 focus groups was conducted on
Number of children in the 12th June 2012 with primary
Gender Age Socio-economic household
shoppers to gain further insight
Female 20-29 C2 2
into comparison behaviour.
Female 30-39 D 3
Female 30-39 C1 2 • The subjects covered were:-
Female 40-49 D 1
Female 20-29 C2 1 – Printing vouchers
– Discount codes
– Trust with personal
information
Focus Group Participants
Number of children in – Timing of receiving
Gender Age Socio-economic household vouchers
Female 20-29 AB 0 – Smartphones and vouchers
Female 30-39 AB 0
– Redeeming vouchers
Female 30-39 C1 0
Male 30-39 AB 0
Female 20-29 C2 0
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22. Glossary
ABC1C2DE – Socio demographic profile using job type (if applicable). Push refers to information, in this case offers to smartphone, being delivered
App – A smartphone application without request toward the shopper
Cashback – money shoppers can claim back Redemption rate – the amount to which something is used, typically a
Coupon – Coupons are for FMCG products, and have a one-off use limit, as they voucher.
represent hard cash. The brand/producer of the coupon is at financial risk from Shopper context – Evolution’s model for determining the profile of an
uncontrolled distribution and over-redemption.
individual shopper.
Demographic – Characteristics of the population (including sex, race, age and
Shopper marketing – Any marketing activity aimed at the shopper
income).
throughout their path to purchase.
Digital media – digital marketing medium for example social media, mobile, digital
signage. Smartphone – An internet enabled mobile phone device that runs
Digital shopper marketing – Shopper marketing that utilises digital media applications (‘apps’).
DSM – Digital shopper marketing Smartphone coupon – coupon that is sent to or accessed with a smartphone
Economic climate - the general condition of the economy in a particular country or and can be either digitally or manually redeemed
in the world Socio-demographic - Characteristics of the population (including
e-retailer/e-tailer – a retailer which trades online. sex, race, age and income).
FMCG – Fast moving consumer goods, often used to refer to a manufacturer. Technologically savvy – someone who is up-to-date with and uses
Food and grocery - Foodstuffs and various household supplies technology regularly.
Internet enabled mobile device - e.g. an internet tablet or and internet enabled URL – Uniform resource locator (web standard for internet website
music player (not a mobile phone) addressing)
Location-based offers – relevant and timely offers usually accessed by smartphones Voucher - Vouchers are issued by the retailer and redeemed at that retailer
to nearby services or products only. Vouchers are self liquidating; the value of the voucher is built into the
Microsite – Internet website dedicated to a particular brand, using a different retailer’s product margin.
(branded) URL
Mobile wallet - allows users to make electronic commerce transactions quickly and
securely using a mobile phone
New technology – Modern and up-to-date technology
Opt in – permission for receiving marketing messages or offers given by a shopper /
customer
Primary shopper – the main shopper in a household.
Promotion – Discounts and offers
Pull - refers to shoppers requesting something, in this case offers delivered to their
smartphone, through a marketing channel
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