Deals, Coupons and Offers – Oh My!

Presented by:Steve Schaffer, Founder & CEO

Offers.com

January 13, 2013

© 2003, 2012 Vertive, LLC Proprietary and Confidential

Steve Schaffer – Founder & CEO of Vertive, LLC

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• Founded Vertive in July 2003

• Moved to Austin in January of 2004 (after 17 years in Silicon Valley)

• 20+ years of Internet and marketing experience

• Initial president of the PMA

© 2003, 2012 Vertive, LLC Proprietary and Confidential January 13, 2013Slide 3

© 2003, 2012 Vertive, LLC Proprietary and Confidential

Outline

• Types• Facts• Tips

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© 2003, 2012 Vertive, LLC Proprietary and Confidential

Deals, Coupons & Special Offers

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© 2003, 2012 Vertive, LLC Proprietary and Confidential

Coupons & Deals are in the News Headlines

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Coupons & Deals are COOL!People LIKE them

© 2003, 2012 Vertive, LLC Proprietary and Confidential

What are the types of discounts and how are

they different?

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© 2003, 2012 Vertive, LLC Proprietary and Confidential January 13, 2013Slide 9

In Store and Local

© 2003, 2012 Vertive, LLC Proprietary and Confidential January 13, 2013Slide 10

CPG (Consumer Packaged Goods)Grocery Coupons

© 2003, 2012 Vertive, LLC Proprietary and Confidential

Printable CouponsConsumers can browse, print, and use

the coupons in the store

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© 2003, 2012 Vertive, LLC Proprietary and Confidential January 13, 2013Slide 12

Local Vouchers

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Online

© 2003, 2012 Vertive, LLC Proprietary and Confidential

Online CouponsDiscounts just for online purchases

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Coupon Codes and Promo CodesA code that must be manually entered at

checkout

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Free ShippingFree shipping coupons and coupon codes

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© 2003, 2012 Vertive, LLC Proprietary and Confidential

DealsUsually a specific product deal, but can also be

a brand or category

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Card-Linked OffersA shopping deal linked to the credit and debit

cards shoppers regularly use

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© 2003, 2012 Vertive, LLC Proprietary and Confidential

Source: Coupons.com 2012 study performed by Dr. Paul J. Zak

Coupons Make Consumers Happy & More Relaxed

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“Oxytocin, a hormone that is directly related to love and happiness, spikes when people receive a coupon. And, in fact, increases more than when people receive a gift. The data shows that coupons make consumers happier and more relaxed.”

© 2003, 2012 Vertive, LLC Proprietary and Confidential

63% surge in coupon redemption in 2011

Source: Coupons.org “The Coupon’s Comeback” Feb. 2012

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© 2003, 2012 Vertive, LLC Proprietary and Confidential

Source: NCH Marketing Services, Inc. “NCH Annual Topline U.S. CPG Coupon Facts Report For Year-End 2011” Jan. 2012

$470 billion of coupon value was offered by consumer packaged goods (CPG) to U.S.

consumers in 2011- of which $4.6 billion

coupons were redeemed

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© 2003, 2012 Vertive, LLC Proprietary and Confidential January 13, 2013Slide23

The Top 5 Retailers in Total U.S. CPG Coupon Redemption Volume in 2011:

1. Walmart2. Kroger3. Walgreens4. Target5. Publix

Source: NCH Marketing Services, Inc. “NCH Annual Topline U.S. CPG Coupon Facts Report For Year-End 2011” Jan. 2012

© 2003, 2012 Vertive, LLC Proprietary and Confidential

About 75 million people, or 1/3 of the total Internet population,

buy goods online and have them shipped each quarter

Source: comScore “Online Shopping Customer Experience Study” May 2012

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© 2003, 2012 Vertive, LLC Proprietary and Confidential

66% of consumers will use online coupons for at least 25% of their

purchases in the next year

Source: Forrester Research “The Impact of Online Coupons and Promotion Codes” Sept. 2011

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© 2003, 2012 Vertive, LLC Proprietary and Confidential

57% of consumers who used a coupon code during their last

online purchase said that if they had not received the discount, they would not have bought

the item(s)Source: Forrester Research “The Impact of Online Coupons and Promotion Codes” Sept. 2011

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© 2003, 2012 Vertive, LLC Proprietary and Confidential

52% of online consumers are likely to reconsider a brand they

haven’t used in a while after receiving a promotion offer for

that brand

Source: Forrester Research “Affiliate Marketing – The Direct and Indirect Value That Affiliates Deliver to Advertisers” June 2012

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© 2003, 2012 Vertive, LLC Proprietary and Confidential

32% of online buyers typically begin the online shopping process on affiliate sites

Source: Forrester Research “Affiliate Marketing – The Direct and Indirect Value That Affiliates Deliver to Advertisers” June 2012

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Parents report 43% growth in plans to use online coupons for

50% or more of purchases

Source: Forrester Research “The Impact of Online Coupons and Promotion Codes” Sept. 2011

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Using Coupons, Deals & Offers

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For Merchants

© 2003, 2012 Vertive, LLC Proprietary and Confidential

What is your goal?

• New customer acquisition

• Increase average order sizes

• Decrease user abandonment

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Run the numbers

• Can you afford it

• Does it drive desired action

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© 2003, 2012 Vertive, LLC Proprietary and Confidential

Tracking & Attribution

• Would you have converted the sale “Data from comScore shows that 80% of

online shoppers have placed items in the shopping cart and left the site without making a purchase”

Source: comScore “Online Shopping Customer Experience Study” May 2012

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© 2003, 2012 Vertive, LLC Proprietary and Confidential

Expiration Dates

• Safety

• Drives urgency

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© 2003, 2012 Vertive, LLC Proprietary and Confidential January 13, 2013Slide 35

© 2003, 2012 Vertive, LLC Proprietary and Confidential

Steve.Schaffer@Vertive.com

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